In accordance with section 75L of the Ordinance. According to section 75L(a) of the Ordinance, a Testamentary Trust is a trust created according to a testament, and in which all the Settlors are testators who were Israeli residents on the date of their demise.

In a Testamentary Trust, Section 75L(b) of the Ordinance provides that the income and the assets of the trust shall be treated as the income and the assets of the beneficiary.

According to section 75L(c) of the Ordinance, in case there is at least one beneficiary who is an Israeli resident in a Testamentary Trust, the trust should be considered as an IRT and the income and the assets of the trust shall be treated as the income and the assets held by an Israeli resident.

In case, there is no beneficiary who is an Israeli resident in a Testamentary Trust, the trust should be classified as a foreign resident and its income and assets shall be treated as income and assets of the beneficiary. In such case the reporting obligations should be examined in accordance with the obligations related to a foreign resident.