Inter vivos Hekdesh versus testamentary trusts and foundations

The Trust Law 1979 governs the creation of trusts in Israel and the Succession Law 1965 governs succession and probate matters. Probate proceedings for estates of non-residents involve procedures with various governmental agencies, including the family court, which requires submission of original documentation, duly authenticated, and in some circumstances translated into Hebrew. The establishment of inter vivos structures such as trusts or foundations avoids the probate requirement and the administrative burdens imposed thereby. This article discusses—with a special focus on non-residents—the creation of the Israeli trust named in Hebrew ‘Hekdesh’, which often is coupled with an Israeli underlying company as an ‘inter vivos’ trust/foundation and makes a comparison to the settling of a testamentary trust.