The owner of a company died and left all parts of his heirs. The company has property on the ground. Some of the heirs want parts and others want to be a sum of money equal to the sum of parts. The problem was that, by law, if additional assets are “introduced” into the inheritance for the purpose of balancing assets, money from outside, for example, to pay the heirs the value of their shares, they do not benefit from the tax exemption granted for inheritances. The distribution of real estate properties between heirs is also considered a “sales” tax, unless it is a “first” distribution of estate property.
However, in a new tax tax printed on Israel tax, trying to do things that are easier for a situation, for balancing the heirs of the heirs with the benefits of heritage. The tax authority also sets the sales of real estate for the purpose of distributing dividend and the requested balance is also removed from tax. It’s a long time no “new” money brought from outside the ground.
In the case that the tax authority was ruled, the father of the family who died was the owner of a company that the parts of a subsidiary, which was an association of land on earth. The deceased father left a will for his wife, his three children and grandchildren, but for a dispute with heirs than a distinctive distribution than showing the will. According to the agreements between the heirs, both of the children who died were left with the parts of the company in the same parts, from all the company’s heirs, as part of the company’s distribution.
Surpluses for Dividend Distribution
The company and its subsidiary have surpluses for dividend distribution. In addition, the subsidiary has a monetary balance and a real estate asset that is in the process of being sold, and is expected to create additional cash flow. Approved that cash distributions to all heirs by a dividend distribution.
Until the Division Division Value is higher than cash, the unpleasant dividend balance can be a commentary from the commentary, to spend the dividnd’s payment, including the company or the subsidiary.
In these situations, the company asks to express the full division for the benefit of all heirs stated on the date of invention of the tax income provisions. The dividend is obtained from income where the total taxes are paid, in accordance with the provisions.
The distribution of real estate properties between heirs contains a “sales” tax under the provisions of the law. However, Section 5 (c) (4) of the law provides an exception to the rule, according to which a first distribution of estate assets between the law, provided that no consideration was given to the law, or in the equivalent of money, that is not an asset Included in the estate assets.
The heirs, concerned with the distribution tax aspects, and the possibility of selling the real estate distributed property distributed properties of assets in the properties of section 5 (c) (4) of the law.
Published in Globes, Israel News in News – en.globes.co.il – On May 28, 2025.
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