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Trusts, Asset and Estate Administration and Private Clients

Background – In 2006, the area of trusts underwent a dramatic transformation. The aspects of taxation and foreign law have become significant, and the prior fax and telephone line method for establishing a trust, has become antiquated and insufficient. Until such time, many foreign trusts were established with the assistance of attorneys who did not have true substantive proficiency in such matters, and which proficiency, until such time, was not typically necessary.

The new addition of complex, material criterion which require relevant knowledge of the foreign laws of diverse countries, such as Panama, Lichtenstein, Switzerland, British Virgin Islands, in addition to the requirement of comprehensive, in-depth knowledge of Israeli and international taxation, has become a "trap" which few are capable of maneuvering, and has created numerous "tax accidents."

Dr. Leybovich is considered to be an expert with an international reputation in the areas of trusts and trust taxation, and has been invited by various countries to advise diverse clients in Israel and throughout the world on such matters. Dr. Leybovich's clients in this area include high-level politicians in countries such as Russia, the former Soviet Union and members of the Saudi monarchy, in addition to high net worth Jews in Israel and the world. Since 2006, Dr. Leybovich, through the use of foreign companies in foreign-domiciled countries, has established numerous trusts with assets aggregating in the billions of dollars.

The Firm's Services – Our firm provides comprehensive service packages in the field of asset and/or estate planning and the formation of trusts and quasi-trust entities for business purposes, tax-planning purposes and as instruments for managing assets in the present and future (and after death), for individuals or families, including an evaluation of worldwide tax aspects, including estate taxes. Such services are provided in addition to the registration of wills and estate planning.

Among other services, our firm establishes the trust or corporate entity to serve as a quasi-trustee, examines the tax aspects relating to such matter, drafts the necessary bylaws and/or trust deeds, while placing an emphasis on carrying out the will of the grantor of the trust and implementing the objectives of the grantor by managing the trust by means of foreign trustees. If necessary, the grantor's will is also drafted, and over the course of years, the firm remains in direct contact with the beneficiaries of the trusts, either independently or as a representative of the foreign trustee, for the purpose of fully implementing the will and intent of the grantors.

In order to provide complete and comprehensive service to our clients in these areas, the firm employs its extensive network of worldwide contacts which Dr. Leybovich has developed over the years with numerous attorneys, accountants and trustees, and international investment banks. Coordination with these contacts often includes both the formation and re-planning of the aforementioned matters and the rectification of past errors, to the extent practicable.

Tax arrangements – The tax aspects relating to previously formed trusts, as well as existing and future trusts are complex. Frequently, the founders and/or beneficiaries seek to reach a tax arrangement with the tax authorities which would ease the administration of the trusts and distributions from the trust. Dr. Leybovich possesses extensive knowledge and experience in the area of tax arrangements, and is considered to be an authority on the matter.

Trust Plans for Options - Our firm prepares option plans for its clients in both Hebrew and English, in accordance with the instructions and requirements of the entities requesting such plans.

Trustee for Shares – The firm coordinates with a specific company which serves as a trustee for the shares and for the option plans of diverse companies operating in the Israeli economy As such, the company is responsible for all of the reporting obligations in accordance with the provisions of the Income Tax Ordinance.

The Book, Trusts and Trusts Taxation – Dr. Leybovich's book, Trusts and Trusts Taxation, has received extensive praise and is the only book in Israel to address all areas of this complex legal field (which includes a general discussion of the law in Israel, foreign law, perspectives on taxation in Israel, perspectives on international taxation and tax planning). The book provides guidance for anyone wishing to maneuver his way in this field, and is required reading for anyone wishing to practice in the area of trusts without injuring his clients.


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