Frozen accounts in Israel: billions of shekels await heirs

Israel's financial system is facing a crisis of unclaimed assets: approximately 86,000 deposits worth about 1.6 billion shekels are frozen in bank accounts of deceased citizens. In total, the banking sector holds around 530,000 'dormant' accounts with 6.5 billion shekels. Experts point to legal barriers: powers of attorney expire upon the account holder's death.

Israel's financial system is facing a large-scale crisis of unclaimed assets affecting tens of thousands of families. According to official statistics from the Bank of Israel, presented in an analytical report by Bizportal, approximately 86,000 deposits totaling about 1.6 billion shekels are currently frozen in the bank accounts of deceased citizens. These funds form a significant portion of a larger pool of 'dormant' deposits: the country's banking sector holds about 530,000 such accounts, containing around 6.5 billion shekels. The main catalyst for asset freezing is the lack of timely information among family members about existing deposits or properly executed legal rights. Experts emphasize strict legal requirements, under which any standard bank powers of attorney expire upon the account holder's death or loss of capacity. As a result, relatives suddenly lose the ability to manage family savings precisely when funds are urgently needed for medical care for the elderly or to initiate inheritance procedures.