Estate & Trusts
This category should begin with a fuller overview of Estate & Trusts in Israel rather than a short label and a grid of links.
Inheritance
Israel does not currently impose an inheritance tax or estate tax. However, inherited assets may carry tax consequences when sold, as the heir typically assumes the deceased's original cost basis. Learn about the tax-free nature of inheritances, the carry-over basis rules, how inherited property is treated for capital gains purposes, and related planning considerations.
5 articlesEstate Planning
While Israel has no estate tax, smart estate planning can help families minimize future capital gains taxes and ensure smooth asset transfer. This section covers will preparation from a tax perspective, lifetime gifting strategies, using trusts for multi-generational planning, the tax implications of different inheritance scenarios, and cross-border estate issues.
5 articlesTrusts
Trusts in Israel are subject to a detailed tax framework established in 2006. The tax treatment depends on whether the trust is classified as an Israeli residents' trust, a foreign beneficiaries' trust, or a relatives' trust. Learn about the taxation of trust income, distribution rules, reporting obligations for trustees and beneficiaries, and the special provisions for immigrant trusts.
5 articlesGifts
Israel does not impose a gift tax, but gifts of assets may trigger capital gains tax for the giver, and some gifts are treated as taxable income for the recipient. Learn about the tax treatment of gifts between family members, gifts to employees, gifts to charitable organizations, and the conditions under which tax-free gifting is possible.
5 articlesFamily Planning
Tax-efficient family financial planning in Israel can include income-splitting strategies (where permitted), leveraging different family members' tax brackets, coordinating pension and retirement savings, and planning for children's education and future needs. This section explores the opportunities and limitations of family-based tax planning.
5 articles