Shortcomings in the Trust Law, 1979

Abstract

The Trust Law, 1979, came into force at the beginning of February, 1980, resolving the debate of many years as to whether the institution of private trusts is recognized in the Israeli legal system. The debate was carried on in the cases, and in scholarly articles, but despite all the ink that was spilt, the law remained uncertain. Two views recently expressed on the question, one by Cohn J. in the case ofInzelv.Kugelmas, and the other by experts in the Ministry of Justice in their preamble to the Trust Bill, are clear evidence of the uncertainty. Cohn J. wrote:The learned advocate was not aware that this Court has already recognized the existence of private trusts in Israeli Law several times, and will not turn the clock back now…The experts in the Ministry of Justice, on the other hand, stated that—The courts in Israel ruled, both in the time of the Mandate and after the establishment of the State, that the institution of private trusts has not been incorporated into Israeli law.

Foundations in Germany and Israel: An Analysis of the Legal Framework

“…Following the severance from English jurisprudence, the question regarding the recognition and incorporation of the trust in the laws of the new state did not receive a definitive answer. 46 In discussions leading towards the enactment of the Trust Law, some Israeli jurists who had continental legal education, raised doubts regarding the appropriateness of adopting the common law model of trust in a legal system like the Israeli one, where contract and property statutes are shaped according to continental patterns. 47 However, these doubts were unfounded.…”