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US Grantor Trust with Israeli Resident Beneficiaries
Trusts created in the United States require special consideration and care if the trust agreement allows distributions to be made to an Israeli resident beneficiary. Israeli trust tax laws apply to any trust whenever a sole beneficiary resides in Israel. These tax laws went into effect in Israel in 2014, and they apply to any US trust with a beneficiary resident in Israel, including trusts created before 2014.1