The Israeli Resident Beneficiary Trust This is any trust whereby the settlor is a non-resident of Israel and has been since settling the trust. Furthermore, at least one beneficiary is an Israeli resident in the current tax year. If there is a family relationship between the settlor and beneficiaries, the trust is deemed a Relative Trust (see here for more details). If not, the trust is a regular Israeli Resident Beneficiary Trust. The taxation is treated in the same way as for a regular Israeli Resident Trust (see here for more). Foreign Beneficiary Trust This is the opposite situation. The settlor is an Israeli resident, but the beneficiaries are not.