The Israeli “it’ll be fine” attitude does not work with the IRS. Many Israelis don’t realize that holding US securities or real estate – even through an Israeli bank – exposes their heirs to estate tax of roughly 40% of asset value, not just the gains. The exemption for a non-US-citizen Israeli is only $60,000, and penalties for non-reporting can reach 50% per tax year. Leor Nouman and Moti Saban of the S. Horowitz tax department explain the available defenses – from trusts to tailored structures – and how to pass wealth to the next generation with peace of mind.