Israel Taxation of TrustsIsrael Taxation of Trusts

Trusts historically have been recognized in Israel prior to the foundation of Israel as a state. During the British Mandate and after the founding of the state, trusts were used mainly for real property transactions. Following the founding of the State of Israel in 1948, waves of immigrants flowed there from different countries, bringing with them not only goods, but also a myriad of cultures and the use of trusts based on various legal systems abroad.

Legislation favoring immigration to Israel encouraged Jewish families and Israelis living abroad to move their residences to Israel. Such changes require adequate planning for estate and tax purposes both in Israel and in the country of origin.

Between 1948 and 1998, Israeli legislation had ...