“Our expertise in inheritance and estate planning enables us to provide expert consultant and estate management services, which is particularly important to reduce and even eliminate the payment of inheritance taxes”
Inheritance Tax in Israel
There is no direct estate tax in Israel. Consequently, the inheritance of estates in Israel does not involve the payment of direct tax as a result of inheritance. However, since taxes may be required from the activities involved in the administration of the estate, it is important to make appropriate inheritance plans which reduce or even eliminate the necessity to pay taxes. Israeli inheritance law enables the drawing up of arrangements between beneficiaries in such a way that the arrangement itself is considered part of the inheritance. Furthermore, it is possible to perform withdrawals for others in a way that represents part of the inheritance process. This permits the transfer of properties between beneficiaries differently to that stated in probate orders, thereby reducing or eliminating the payment of taxes.
Taxation for Foreign Citizens/Residents
When the benefactors or beneficiaries are not citizens or residents of Israel, it is important to verify the inheritance process from the point of view of laws relating to trusts and taxation, and the laws of inheritance governing the countries connected to the inheritance process or to the beneficiaries. It is important to identify the beneficiaries in probate orders, and their influence on the transfer of the estate directly to the required party, in order to prevent double tax payments.
Our firm specializes in inheritance and estate planning, particularly when the benefactors or beneficiaries are not citizens or residents of Israel, and in the building of inheritance frameworks which will prevent unnecessary tax payments.