The biggest change in the 2014 amendments to the trust taxation law relate to these types of trust. This is a trust whereby all of the settlors are not – and have never been since inception of the trust – Israeli resident, but at least one of the beneficiaries is Israeli resident. Further, there is a family relation between settlors and beneficiaries. The cases are clear where the relationship is that of spouse or (grand)parent. Where the relationship is of other first degree relations, the tax authority must be satisfied that the trust has been set up in good faith and that