Crafting a tax-efficient, practical settlement that reduced conflict, preserved value and maximised the distributable pool.
Situation
A single lady passed away, leaving an estate of more than ILS 110 million. Over time she had drafted several conflicting wills. Potential heirs included distant relatives, a well-known physician, and her long-time lawyer. Assets included real estate in Israel and significant bank accounts in Israel and Switzerland, including USD 14 million traced to German reparations invested decades earlier. The estate became the subject of a contentious legal dispute.
Our Role
We recognised that without careful structuring, complex tax issues threatened to consume much of the estate. We developed a settlement framework that resolved both the inheritance dispute and the tax exposure. Our approach substantially reduced the overall tax burden while creating a structure that enabled compromise.
Outcome
The tax-efficient settlement increased the distributable estate, allowing the parties to bridge differences and reach agreement. Our client was able to assume the residual tax risk based on our proposed solution, while all heirs received significantly more than they otherwise would have. The dispute was resolved with a settlement that was financially and practically beneficial to all.