Israel an Emerging Trust Administration and Financial Center
By Alon Kaplan, Lyat Eyal and Alan Krost, MMG Kaplex Trust Company (1978) Ltd
Israel is growing in prominence as an attractive international financial planning center. This growth can be attributed to Israel's solid and dynamic economy as well as the legislature's ability to adapt to the changes which accompany economic growth. The World Economic Forum ranked Israel 23rd [out of 134] most competitive economies in its 2008 – 2009 Global Competitive Index.
The reform of Israel’s tax law in 2006 indicated the legislator's adoption of an emerging market outlook which has resulted in the establishment of a business environment in Israel which did not exist in the past.
Israel's Trust Law
Israeli law defines a trust as the duty imposed on one party to hold or otherwise deal with assets under his control for the benefit of another party or for some other purpose.
The Law of Trust, as its name suggests, introduced and regulated various forms of trusts resembling the Anglo-American model, although the general applicability of this law is much wider. A trust has no prescribed form and no particular procedure is necessary to form a trust that falls within the law. Trust purports to cover any situation in which someone has the power to deal with property, not for his own benefit, but for the benefit of someone else.
Features of an Israeli Trust
An Israeli trust has the following features:
1. The trustee is endowed with control over the assets but there are no particular conditions as to the manner of control. A common means of control is acquired through title to the trust assets passing to the trustee. The trustee may, however, be vested with control over the assets by being empowered to deal with them, whether as an agent or otherwise. A trustee is deemed to have control if he can, by his acts, affect the way the trust assets will be dealt with, whether distributed, invested, or exchanged for other assets, etc.
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