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Creation of a Trust Pursuant to a Deed of Endowment - Chapter 6 - Trusts and Estate Planning in Israel - Second Edition
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This chapter is from Trusts and Estate Planning in Israel, Second Edition
PAGE PREVIEW 6.1. INTRODUCTION
One of the primary objectives behind the enactment of the Trust Law was to introduce the concept of a private trust into Israeli legislation, as highlighted in the explanatory notes of the Draft Bill of the Trust Law. However, a straightforward comparison between the Bill's text and the final version of the Trust Law reveals a striking difference.
Section 2 of the enacted Trust Law provides that trust may be established by law, through a contract with a trustee, or by an endowment ("Hekdesh") deed, while an endowment is created in accordance with sections 17 or 26. Section 17 refers to the creation of an endowment while section 26 refers specifically to a charitable trust known as a "public endowment."
The Trust Law outlines general provisions applicable to all trusts in sections 1–16 and 36–46, sections 17–24 pertain exclusively to endowments, and sections 25–31 apply solely to public endowments. It therefore follows that the Trust Law distinguishes between three types of trusts, while each type is subject to different provisions in the Law: (a) trusts which are not considered as an endowment, (b) private endowments, and (c) public endowments.
Contrarily to this distinction, the Bill distinguishes between two types of trusts only: (a) Trusts in general, and (b) charitable trusts which are simply defined in section 29 as Hekdesh – endowment. Thus, section 2 of the Bill provides that a trust - – any trust - – can be created simply through a written document, including a will, while section 53 provides that the provisions of the Law shall apply to anyone effectively holding or acting upon assets as part as their position as a guardian, an estate administrator, a trustee in bankruptcy, liquidator, debenture trustee, and agent.
Dr. Alon Kaplan, Advocate & Notary, is a member of the Israel Bar and was admitted as a member of the New York and Frankfurt Bars. He is the President and founder of the Society of Trust and Estate Practitioners “STEP Israel”. Academically speaking, he has a Ph.D. from Zurich University in Switzerland and an LL.B. and LL.M. from the Hebrew University of Jerusalem. Dr. Kaplan maintains a direct and close relationship with academia, and he was a lecturer on trusts in the Academic Management College, Reichman University, and the Law Faculty of Tel Aviv University, where he taught trust courses for LL.M. students. Dr. Kaplan is a popular lecturer on trusts in Israel and abroad. He constructed the academic program for the Trusts Diploma of STEP in Israel. Throughout his professional career, he has written numerous professional articles in legal journals, on matters of trusts, intergenerational asset transfers and selected commercial law topics such as agent and distributor laws, a topic which he researched for his LL.M. thesis. Dr. Kaplan has been a regular contributor of articles to Trusts & Trustees by Oxford University Press. He has written and edited numerous professional books, among these on doing business in Israel, on trusts in Israel, and on international trusts laws. His book, Trusts and Estate Planning in Israel, is a professional and comprehensive guidebook for practitioners in this area in Israel. Another important book in English is Trusts in Prime Jurisdictions, fifth edition, 2020 which reviews trusts in various jurisdictions by 19 authors from various jurisdictions. In December 2020 he was the co-editor of the book, Life Cycle of a Family Business, published in London. Meytal Liberman, Advocate and Notary, TEP, advises private clients in Israel and internationally on trusts and estate planning. Her services include legal structuring for the long-term holding, ownership, and management of assets, addressing legal incapacity, division of marital property, wills, and trusts. She has practiced in this field since 2012, combining legal work, academic study, and active participation in professional organizations, publications, lectures, and continuing legal education.
Ms. Liberman was admitted to the Israel Bar in 2013 and licensed as a notary in 2024. She holds an LL.B. from Bar Ilan University (2012) and an LL.M. in Commercial Law from Tel Aviv University (2015). She is a full member of STEP, having earned a Diploma in International Trust Management following two years of study. Since 2018, she has been authorized by the Administrator General and the Israel Bar Association to draft and execute legal instruments for future incapacity planning, including the Enduring Power of Attorney, Expression of Wishes Document, and Preliminary Instructions for the Appointment of a Guardian. Her writing includes chapters in Asia-Pacific Trusts Law, Volume 2 (Bloomsbury, 2022), Trusts in Prime Jurisdictions (5th ed., Globe Law and Business, 2019), and Trust in Israel: Theory and Practice (2017, in Hebrew). Her work has also appeared in Trusts & Trustees, The International Family Office Journal, and STEP Journal. She lectures regularly at seminars and conferences, including events hosted by the Israel Bar Association and STEP.
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