This document discusses tax planning opportunities and risks related to trusts. It describes risks such as trusts becoming taxable as Israeli trusts after the settlor returns to Israel as a resident. It also describes opportunities such as using trusts to inherit losses or take advantage of the Israeli tax status of trusts. The document provides examples and analysis of relevant sections of Israeli tax law.
1) The document discusses the tax implications of transferring real estate properties to a trust in Israel. It notes that transferring properties to a trust for beneficiaries who are not the owners would be considered a taxable event under Israeli real estate tax law.
2) An example is provided of parents transferring two apartments to their daughters through a trust to receive tax benefits. Establishing the trust allows the transfer to be considered a tax-exempt gift and reduces the applicable purchase tax.
3) The document also discusses using a trust structure to potentially reduce tax rates on interest income from loans to companies. Placing loans in a trust could allow interest to be taxed at standard rates rather than higher marginal rates that would apply to direct loans
This document discusses tax planning opportunities and risks related to trusts. It describes risks such as trusts becoming taxable as Israeli trusts after the settlor returns to Israel as a resident. It also describes opportunities such as using trusts to inherit losses or take advantage of the Israeli tax status of trusts. The document provides examples and analysis of relevant sections of Israeli tax law.
1) The document discusses the tax implications of transferring real estate properties to a trust in Israel. It notes that transferring properties to a trust for beneficiaries who are not the owners would be considered a taxable event under Israeli real estate tax law.
2) An example is provided of parents transferring two apartments to their daughters through a trust to receive tax benefits. Establishing the trust allows the transfer to be considered a tax-exempt gift and reduces the applicable purchase tax.
3) The document also discusses using a trust structure to potentially reduce tax rates on interest income from loans to companies. Placing loans in a trust could allow interest to be taxed at standard rates rather than higher marginal rates that would apply to direct loans