Planning Uses
Trusts serve legitimate tax planning purposes including: protecting assets for future generations while maintaining control, providing for beneficiaries with special needs, managing international family wealth, facilitating orderly business succession, and sheltering assets from creditors (within legal limits). A properly structured trust can provide significant tax and non-tax benefits.
Limitations
Israeli anti-avoidance rules (Section 86) can be applied to trusts created primarily for tax avoidance. The ITA will examine the substance and purpose of the trust arrangement. Trusts must have genuine purposes beyond tax savings to withstand scrutiny.
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.