In 1881, he moved with his family to Lamoni, Iowa, the site of a growing colony of Latter Day Saints of the Reorganization.

Frederick also introduced the concept of "Supreme Directional Control" regarding authority over leadership and finances, which Israel opposed as contrary to the teachings of their father, Joseph Smith III.

Many members including Otto Fetting renounced the Reorganization and joined with the Church of Christ (Temple Lot).

From 1929 to 1940, Israel served as the church's general secretary and in 1940, he was finally called to fill a vacancy as First Counselor in the First Presidency.

Smith died in a car accident on June 14, 1958, while driving north along U.S. Highway 69 from Independence, Missouri, to Lamoni, Iowa.