If you're a foreign grantor, estate executor, or charitable foundation with assets, beneficiaries, or activities in Israel, an Israeli-resident trustee isn't just convenient — it's often required.
Several types of Israeli trusts must have at least one Israeli-resident trustee:
Without an Israeli trustee, foreign grantors face:
US 501(c)(3) foundations donating to Israeli charities, family-funded yeshiva endowments, scholarship trusts for Israeli students, and community trusts. Includes Section 46 compliance for Israeli donor tax credit, audit oversight, and donor reporting.
Estate of a US-domiciled grandparent leaves Israeli real estate to grandchildren. Estate of an Israeli with US heirs. Trusts established under wills (testamentary trusts) holding Israeli assets. We administer through Israeli probate (tzav kiyum) and US tax reporting.
Multi-generational family trusts where US grandparents fund Israeli grandchildren's education, weddings, or first homes. Asset protection trusts. Special needs trusts for Israeli-resident beneficiaries. Discretionary trusts with cross-border distributions.
Kvutzat Rechisha groups with foreign investors require an independent Israeli trustee to hold and disburse pooled funds. We manage trust accounts, oversee construction draw schedules, and provide transparent reporting to all foreign and Israeli participants.
US buyers acquiring Israeli companies often require Israeli escrow for indemnification holdbacks, working capital adjustments, and earn-outs. We act as independent escrow agent — releasing funds only on documented satisfaction of conditions.
Court-ordered settlement trusts in Israeli litigation (class actions, mass torts, complex commercial). We act as approved trustee, distribute to claimants per court-ordered plan, file periodic reports with the court.
Israeli Trust Law (5739-1979) imposes strict duties on trustees. We take these seriously — they're the foundation of trust value.
What this means in practice:
Most trusts we administer have at least one US person involved (grantor, beneficiary, or both). This triggers US reporting on top of Israeli — and the penalties for missing it are severe.
| Form | Who Files | Threshold | Penalty for Non-Filing |
|---|---|---|---|
| Form 3520 | US person who receives distribution from foreign trust | Any amount | 5% per month of distribution, up to 25% |
| Form 3520-A | Foreign trust with US owner (annual) | If grantor trust | 5% of trust assets per year |
| FBAR (FinCEN 114) | US person with signature authority over foreign account | $10,000 aggregate | $10,000 per violation (non-willful) |
| Form 8938 | US person with foreign assets | $50K-$600K (varies) | $10,000 + 40% of underpayment |
| Trust Type | Setup Fee | Annual Fee |
|---|---|---|
| Simple charitable trust (~$500K-$2M) | $3,000-$5,000 | $5,000-$12,000 |
| Family wealth trust (~$2M-$10M) | $5,000-$10,000 | $12,000-$30,000 or 0.5%-0.8% |
| Large family trust ($10M+) | $10,000-$20,000 | 0.4%-0.7% of assets, with cap |
| Group purchasing escrow | $8,000-$15,000 | $15,000-$40,000 (varies by group size) |
| M&A escrow | $5,000-$15,000 | 0.15%-0.4% of escrow value, plus per-event fees |
| Estate/probate trust | $5,000-$10,000 | $8,000-$20,000 (during administration) |
All fees are quoted in USD and include: trust accounting, tax filing coordination, distributions, regular reporting, and routine beneficiary correspondence. Annual D&O and professional liability insurance included.
30-min call to understand the trust's purpose, beneficiaries, assets, and grantor's wishes. Free, confidential.
If trust exists, we review trust deed, prior accountings, asset list. If new, we coordinate with attorneys to draft optimal structure.
Formal trustee acceptance, including fees, scope, succession, indemnification, and termination terms. Reviewed by your attorneys.
Bank accounts opened (segregated, in trust name). Authority filed with relevant Israeli registries. US grantor/beneficiary tax filings prepared.
Existing assets transferred into trust per legal process. Real estate transfers, securities, or cash received and recorded.
Quarterly accountings, annual reports, distribution administration, tax filings. Annual review of trust performance and fees.