Gift and gift cancellation in 2026: When can you get back an apartment, money or property given as a gift?

Transferring an apartment to a child, giving money to a family member, or registering property in the name of a spouse are usually done out of trust, love, and a desire to help. However, when relationships deteriorate, one of the most complex questions in family and property law arises: Is the gift giver allowed to regret it and demand the property back?

The answer depends mainly on whether the gift has already been completed, or whether it is only a commitment to give a gift in the future. In 2026, the revocation of a gift in Israel will be examined in accordance with the Gift Law, Contract Law, Land Law, Inheritance Law and case law. Any document, registration or behavior may have a decisive impact on the outcome, so it is recommended to obtain legal advice before signing a gift agreement – ​​and also immediately upon the outbreak of a dispute.

What is a gift according to the law?

Section 1 of the Gift Law, 5728–1968, defines a gift as the acquisition of property without consideration. A gift can include an apartment, land, money, shares, a vehicle, movable property, or other rights. A waiver of a right or the forgiveness of a debt may also be considered a gift.

According to Section 2 of the law, a gift is perfected when the property has been granted to the recipient with the consent of both parties. When it comes to a registered apartment or real estate, Section 7 of the Real Estate Law must also be taken into account. As a rule, a transaction in a registered right in real estate ends with registration. As long as the apartment has not yet been registered in the name of the recipient of the gift, it is generally an obligation to carry out a gift transaction and not a completed gift.

The distinction between a completed gift and a commitment to give a gift is critical: the possibility of withdrawing from a commitment that has not yet been completed is broader than the possibility of canceling a gift that has already been made and registered.

Is it possible to cancel a commitment to give a gift?

Section 5 of the Gift Law states that an undertaking to give a gift in the future requires a written document. As long as the recipient of the gift has not changed his situation in reliance on the undertaking, the giver of the gift may, as a rule, withdraw it – unless he has waived in writing the right of return.

In the case of A.A. 404/84, paragraphs 1-3, key principles were established regarding the withdrawal from an obligation to give a gift. The Supreme Court later clarified in A.A. 7323/18 that in the absence of reliance on the part of the recipient and in the absence of a waiver by the giver of the right to withdraw, the giver of the gift is not necessarily required to present a special reason for its withdrawal.

However, if the recipient of the gift has already changed his or her circumstances in a material way in reliance on the obligation – for example, invested significant amounts in property, took out a loan or gave up another place of residence – this may limit the right to return. Not every expense or expectation will be considered sufficient reliance. The court will examine the connection between the obligation and the change, the extent of the investment and the evidence presented by the parties.

What does irrevocable power of attorney mean?

In real estate gift transactions, it is sometimes customary to sign an irrevocable power of attorney. The case law has recognized that signing such a power of attorney may be considered a written waiver by the gift giver of his usual right to withdraw from the obligation. This principle was discussed, among other things, in Ltd. 3948/14 So-and-so v. So-and-so.

However, the title “irrevocable power of attorney” does not guarantee that the transaction is completely immune from cancellation. The wording of the documents, the intention of the parties and the circumstances of the signing must be examined. In appropriate cases, one can claim oppression, coercion, deception, undue influence, lack of judgment, incompetence or violation of a condition stipulated in the agreement.

Gift cancellation due to outrageous behavior

Section 5(c) of the Gift Law allows the giver to withdraw from his obligation when the recipient of the gift has behaved disgracefully towards him or a member of his family. The law allows for consideration of withdrawal from the obligation even when there has been a significant deterioration in the financial situation of the giver of the gift.

In A.C. 350/96 Weiser v. Shavit, it was emphasized that the term “disgraceful conduct” must be interpreted taking into account the special nature of the gift transaction and the increased duty of good faith applicable to the recipient of the gift. In A.C. 7156/06 Tzemach v. Gabbay, the relationship between the giver of the gift and the recipient and the possibility of withdrawing from the obligation following inappropriate behavior were also examined.

Not every family argument, rift, or disappointment automatically allows a gift to be revoked. The court examines the seriousness of the acts, their origin, the family context, the time they occurred, and the evidence supporting the claims. Messages, correspondence, documents, complaints, testimonies, and previous legal proceedings may be significant.

In A.A. 3220/10 Cohen v. Haddad, it was clarified that the ground of disgraceful conduct may allow for withdrawal from an obligation even when the giver of the gift has waived in writing the usual right of withdrawal or when the recipient of the gift has changed his situation in reliance on it.

Is it possible to cancel a gift that has already been registered?

Canceling a completed gift, especially an apartment that has already been registered in the name of the recipient of the gift, is a more complex procedure. Section 5 of the Gift Law deals primarily with the withdrawal from an obligation that has not yet been completed. After the gift has been completed, the giver does not have a general right to regret it simply because the relationship has changed.

However, other legal grounds can be examined, including:

• The gift was conditional on a condition that was violated.
• The signature was obtained through coercion, oppression, or deception.
• The gift giver did not understand the meaning of the documents.
• There was no real intention to give the property away for free.
• The deal was made for show only.
• The recipient of the gift took advantage of dependence, weakness, or distress.
• The gift was intended to take effect only after the death of the donor, contrary to the provisions of the Inheritance Law.

In Case 53133-03-19 N.A. v. M.H., the Family Court received a claim that dealt with the withdrawal of a commitment to transfer a house. The court examined, among other things, allegations of disgraceful conduct, the meaning of an irrevocable power of attorney, and the fact that the transfer was actually intended to be realized after the grantor’s death. The ruling illustrates why one should not be satisfied with the title of the document, but rather examine its content and the true purpose of the parties.

Gifts between spouses and divorce proceedings

Gifts between spouses raise additional complex questions. Sometimes one spouse claims that an apartment, money, or a share in a business was given to him as a gift, while the other party claims that the registration was technical, conditional on continuing to live together, or part of a broader property transaction.

In these cases, it is necessary to examine who financed the property, how it was registered, whether a gift agreement was signed, whether direct or indirect consideration was given, how the parties conducted themselves after the transfer, and whether a financing agreement existed. The registration of the property is important evidence, but it is not necessarily the end of the discussion.

A gift received from one spouse’s parents may also spark controversy: Was the money given only to their child or to the couple together? Was the money invested in a shared apartment? Was a document signed defining the money as a gift or a loan? And does the conduct indicate an intention to share?

How do you prepare for a claim to cancel a gift?

Before filing a lawsuit, you should collect the gift agreement, power of attorney, registration form, tax reports, correspondence, bank documents, evidence of reliance, and any document that indicates the parties’ intent. It is important to check whether a warning note has been recorded and whether the gift transaction has already been completed.

Sometimes, an urgent application to the court for an injunction is required to prevent the sale, encumbrance, or transfer of the property to a third party. Early action may be essential, as further changes to the registration may make it difficult to restore the situation to its original state.

On the other hand, a person who received a gift and is required to return it must present evidence that the gift was completed, that the giver waived the right of return, or that he himself significantly changed his situation in reliance on the obligation.

Legal advice on gifts and gift cancellation

Sharon Segal Law Firm specializes in family and inheritance law, property disputes, gift agreements, and managing claims to enforce or revoke a gift. The firm was established in 2012, and Attorney Sharon Segal has over 15 years of experience managing complex family and property disputes.

The firm is ranked in the field of family and inheritance law in 2026 by Dun’s 100 and also appears in the BDI Code ranking. The firm’s team combines legal experience, litigation, mediation and broad economic insight, while building a strategy tailored to the circumstances of each case.

If you have given an apartment, money, or a right to a family member and you wish to revoke the gift – or if a lawsuit has been filed against you to return a gift – it is recommended that you seek legal advice early. In these cases, the difference between a completed gift and an obligation to make a gift may determine the outcome.

Sharon Segal Law Firm provides consultation and representation in Tel Aviv, Netanya and Haifa branches as well as in video meetings. Maximum investment. Maximum result.

The information in this article is general information only and is not a substitute for individual legal advice.