{"id":8579,"date":"2025-10-05T07:42:04","date_gmt":"2025-10-05T07:42:04","guid":{"rendered":"https:\/\/aboulafia.co.il\/?p=8579"},"modified":"2025-10-05T07:42:04","modified_gmt":"2025-10-05T07:42:04","slug":"taxation-of-trusts-part-6-testamentary-trusts","status":"publish","type":"post","link":"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/taxation-of-trusts-part-6-testamentary-trusts\/","title":{"rendered":"Taxation of trusts, part 6 \u2013 Testamentary trusts"},"content":{"rendered":"<p style=\"text-align: left;\">A testamentary trust is one whereby the trust comes into existence as a result of the will of an Isrseli resident upon the death of the settlor.<\/p>\n<div style=\"text-align: left;\"><\/div>\n<div style=\"text-align: left;\">Such a trust is taxed based on the residence of the beneficiaries.<\/div>\n<div style=\"text-align: left;\"><\/div>\n<div style=\"text-align: left;\">If none of the beneficiaries are Israeli resident, the trust is deemed non-resident and hence exempt from Israeli taxation on income earned outside ISRAEL.<\/div>\n<div style=\"text-align: left;\"><\/div>\n<div style=\"text-align: left;\">If however, there is one beneficiary who is an Isrseli resident, the entire trust is taxable. A noticeable exception will apply if the Isrseli resident beneficiaries are all within their ten-year exemption period \u2013 assuming of course that all income is earned outside Israel.<\/div>\n<div style=\"text-align: left;\"><\/div>\n<div style=\"text-align: left;\">In a case where there is a single beneficiary, who is an Israeli resident, the beneficiary can elect to have the income of the trust taxed in their own hands, rather than at the trust level.<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A testamentary trust is one whereby the trust comes into existence as a result of the will of an Isrseli resident upon the death of the settlor. Such a trust is taxed based on the residence of the beneficiaries. If none of the beneficiaries are Israeli resident, the trust is deemed non-resident and hence exempt [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[206,253],"tags":[],"class_list":["post-8579","post","type-post","status-publish","format-standard","hentry","category-taxation-for-trusts-en","category-binyamin-radomsky-en"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Taxation of trusts, part 6 \u2013 Testamentary trusts - \u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/taxation-of-trusts-part-6-testamentary-trusts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Taxation of trusts, part 6 \u2013 Testamentary trusts - \u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df\" \/>\n<meta property=\"og:description\" content=\"A testamentary trust is one whereby the trust comes into existence as a result of the will of an Isrseli resident upon the death of the settlor. Such a trust is taxed based on the residence of the beneficiaries. If none of the beneficiaries are Israeli resident, the trust is deemed non-resident and hence exempt [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/taxation-of-trusts-part-6-testamentary-trusts\/\" \/>\n<meta property=\"og:site_name\" content=\"\u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df\" \/>\n<meta property=\"article:published_time\" content=\"2025-10-05T07:42:04+00:00\" \/>\n<meta name=\"author\" content=\"Rachel Levin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rachel Levin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/taxation-of-trusts-part-6-testamentary-trusts\/\",\"url\":\"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/taxation-of-trusts-part-6-testamentary-trusts\/\",\"name\":\"Taxation of trusts, part 6 \u2013 Testamentary trusts - \u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df\",\"isPartOf\":{\"@id\":\"https:\/\/aboulafia.co.il\/en\/#website\"},\"datePublished\":\"2025-10-05T07:42:04+00:00\",\"author\":{\"@id\":\"https:\/\/aboulafia.co.il\/en\/#\/schema\/person\/2054089d644528990cb12e0974ece747\"},\"breadcrumb\":{\"@id\":\"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/taxation-of-trusts-part-6-testamentary-trusts\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/taxation-of-trusts-part-6-testamentary-trusts\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/taxation-of-trusts-part-6-testamentary-trusts\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"\u05d3\u05e3 \u05d4\u05d1\u05d9\u05ea\",\"item\":\"https:\/\/aboulafia.co.il\/en\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Taxation of trusts, part 6 \u2013 Testamentary trusts\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/aboulafia.co.il\/en\/#website\",\"url\":\"https:\/\/aboulafia.co.il\/en\/\",\"name\":\"\u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df\",\"description\":\"Just another WordPress site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/aboulafia.co.il\/en\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/aboulafia.co.il\/en\/#\/schema\/person\/2054089d644528990cb12e0974ece747\",\"name\":\"Rachel Levin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/aboulafia.co.il\/en\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/8645467386afae1c19e26d165518fc0e843acc6ffb76cb6b7207c4138d63a605?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/8645467386afae1c19e26d165518fc0e843acc6ffb76cb6b7207c4138d63a605?s=96&d=mm&r=g\",\"caption\":\"Rachel Levin\"},\"url\":\"https:\/\/aboulafia.co.il\/en\/author\/rachel\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Taxation of trusts, part 6 \u2013 Testamentary trusts - \u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/aboulafia.co.il\/en\/binyamin-radomsky-en\/taxation-of-trusts-part-6-testamentary-trusts\/","og_locale":"en_US","og_type":"article","og_title":"Taxation of trusts, part 6 \u2013 Testamentary trusts - \u05d0\u05d1\u05d5\u05dc\u05e2\u05e4\u05d9\u05d4 \u05e8\u05d5\u05d0\u05d9 \u05d7\u05e9\u05d1\u05d5\u05df","og_description":"A testamentary trust is one whereby the trust comes into existence as a result of the will of an Isrseli resident upon the death of the settlor. 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