March 20, 2026

Here is a 10-15 minute podcast script for Tax4US on the impact of tax law changes on gifts and inheritances between Israel and the US: Intro (1-2 mins): Emma: Welcome to the Tax4US podcast! I'm your host, Emma, and today we have a special episode on the impact of tax law changes on gifts and inheritances between Israel and the United States. Joining me is Ben Ginati, a leading tax expert who specializes in cross-border tax planning. Welcome, Ben. Ben: Thank you, Emma. I'm excited to discuss this important and complex topic with you and our listeners today. As you know, the rules around estate planning and wealth transfer can be tricky, especially when you're dealing with two different tax systems like the US and Israel. But there are also some really valuable opportunities if you understand how to navigate it all. Emma: Absolutely, this is an area that a lot of people struggle with. I know I certainly did when my family started talking about estate planning and passing assets between the two countries. So let's dive right in - what are some of the key changes we need to know about on the US side? Segment 1 - Changes to the US Estate and Gift Tax Exemption (2-3 mins): Ben: Well, the big news is that the estate and gift tax exemption in the US has nearly doubled in recent years. In 2017, the exemption was $5.49 million per person. But starting in 2018, it jumped to $11.18 million and has continued to rise with inflation, reaching $12.06 million per person in 2022. Emma: Wow, that's a massive increase. I remember when the exemption was just a few million dollars. So what does this mean for families? Ben: It opens up a lot of planning opportunities, but also requires more careful estate planning to maximize the benefits. Let me use an analogy that might help explain it. Imagine the estate and gift tax exemption is like climbing a mountain - the higher the peak, the more room you have to maneuver. Before 2018, the mountain was only about 5,500 feet tall. Now it's over 12,000 feet! That gives families a lot more space to strategically transfer wealth without triggering US estate or gift taxes. Emma: I see, so you have a much bigger "sandbox" to play in when it comes to gifting and passing on assets. But I imagine there are still some important rules and considerations, right? Ben: Absolutely. And that's where the US-Israel tax treaty comes into play. Understanding how that fits into the picture is crucial. Segment 2 - The US-Israel Tax Treaty (2-3 mins): Ben: The US-Israel tax treaty is a critical piece of the puzzle. It establishes the rules for how estates and gifts are taxed when assets are transferred between the two countries. The key principles are: - Assets located in the US are subject to US estate/gift tax rules - Assets located in Israel are subject to Israeli estate/gift tax rules - To prevent double taxation, a credit is available for taxes paid in one country against the liability in the other. Emma: Okay, that makes sense. So it's really about coordinating the tax treatment on both sides. But I'm guessing that can get pretty complex, especially with all the reporting requirements involved. Segment 3 - Reporting Requirements: FBAR and FATCA (2-3 mins) Ben: You're absolutely right. There are two main reporting obligations that come into play - FBAR and FATCA. FBAR requires US citizens and residents to report foreign bank and financial accounts if the total value exceeds $10,000. FATCA, on the other hand, requires foreign financial institutions to identify and report on accounts held by US persons. Emma: I remember when FATCA first came out - it caused a lot of confusion and headaches for people with cross-border financial holdings. What kind of penalties are we talking about for non-compliance? Ben: The penalties can be pretty severe, unfortunately. Failure to file an FBAR can result in fines of up to $12,000 per violation, plus potential criminal charges. And FATCA non-compliance can trigger penalties of