Alon Kaplan & Meytal Liberman
The International Practice, Israel Taxation Trusts, Help your clients accommodate their estate plans to these rules
Alon Kaplan, Lyat Eyal and Daniel Paserman
Alon Kaplan and Lyat Eyal
The article reviews the Israeli Banking Ordinance 1941, whose provisions relating to joint ownership of assets in Israel are quite unique in Israeli law. Non-residents, both clients and professionals, owning assets in Israel, unfamiliar with local laws and accustomed to the laws in their relevant jurisdictions, are often surprised. Estate planning, including the establishment of inter-vivos structures, such as foundations and trusts, may resolve some of the issues. This article will not discuss basic issues but rather the manner in which trusts and foundations may remove various obstacles for non-residents who are not familiar with Israeli laws. For the purpose of this article, we consider the Israeli Hekdesh coupled with an Israeli underlying company as a foundation, as this arrangement may be used to hold assets under a trust in Israel.
This comprehensive guide provides all that practitioners need to grasp the benefits of trusts as practiced in modern-day Israel. Its author, Alon Kaplan, founder and president in Israel of STEP, brings readers much needed insight into the historical, cultural, and legislative context that has contributed alike will find a firm guide-rope in his succinct, practical analyses and will become familiar with:
- The basic terminology and principles behind trusts.
- The different ways a trust can be created under Israeli law – by law, by contract, by will or by unilateral deed of Hekdesh.
- The Israeli law of charitable trusts and power of attorney.
- Tax opportunities applicable to trusts of real property.
- Trust taxation under current Israeli law.
- Special issues concerning trust protectors and the privilege and confidentiality of trustees, the substantive jurisdiction of the court.
- The use foreign trusts in Israel, arbitration, the international jurisdiction of the court in trust matters.
- Information equally useful to the Jewish, Christian and Muslim communities.
- The possible future development of aspects related to the administration of trusts.
Israel’s vast immigration and economic growth have presented special challenges relative to the management of private wealth. For anyone interested in knowing about trusts in Israel and their creation and management, there is no other resource like this.
STEP (Society of Trust and Estate Practitioners) is a worldwide professional organization comprised of attorneys, accountants, and trust and estate specialist from 95 countries around the globe. Its mission is to promote high professional standards, educate professionals, connect advisors and families globally, inform public policy and act in the public interest.
STEP offers the only known organized diploma course on trusts existing in Israel.(more…)