Signing a longevity form at your bank prevents the automatic freezing of a joint account in the event of the passing of one of the account holders, whether a parent, spouse, or partner. This simple step ensures that the remaining account holders can continue managing their finances without interruption, even before a probate order or will execution order has been issued.
What Happens When a Joint Account Holder Passes Away?
By Israeli law, when one of the holders of a joint bank account passes away, the account is automatically frozen until a probate order or will execution order is received. This legal safeguard exists to protect the rights of all heirs and to prevent any misuse of funds during the period between the passing and the official legal process.
A Significant Financial Burden on Top of Grief
Without a longevity form in place, the surviving account holder may suddenly find themselves unable to access shared funds, right at one of the most emotionally difficult moments of their life. This means being unable to cover funeral expenses, shiva costs, or everyday essential payments. This situation can last for months, while waiting for the legal inheritance process to be completed.
The Solution Is Simple: Sign a Longevity Form
A longevity form is completed in advance and represents the mutual agreement of all account holders that, in the event of one holder’s passing, the account will not be frozen and the remaining holders will be free to continue operating it normally.
It is important to note that a longevity form does not affect the rights of heirs under a probate order or will execution order. If it is later found that one of the account holders misused funds or took money that was not rightfully theirs, they will be required to return it to the heirs.
So What Should You Do Tomorrow Morning?
All joint account holders should agree together to sign a longevity form, and then each holder should visit a bank branch to sign the designated form. This one proactive step ensures that if one account holder passes away, the others will be able to continue managing their finances smoothly, without also facing a cash flow crisis during their time of grief.
Three Additional Important Points
When opening a new joint account, ask to sign a longevity form from the outset, or confirm that this clause is already included in the account opening documents.
Make sure that the longevity clause you are signing is not time-limited and that it does not expire at any stage.
A longevity clause applies only to joint account holders. It does not apply to an authorized signatory on the account, since a power of attorney expires automatically upon the death of the account holder.
