Q&A from the Bais HaVaad Halacha Hotline

Out of Stock

March 27, 2025

Q I own stock in a non-Jewish bread manufacturer. As part of my estate planning, I placed my shares into a trust. On Pesach, am I forbidden under bal yeira’eh to own the stock in this way? If so, can I avoid the transgression by selling the shares to a non-Jew before Pesach through my rav?

A Some poskim maintain that ownership of a small amount of common stock is not considered partial ownership of the underlying business, so owning shares in a chametz company doesn’t violate bal yeira’eh. Others hold a stricter view and require that the shares be sold through a rav along with one’s other chametz. But if one’s holdings amount to a significant fraction of the company’s shares, such that his opinions carry weight in company decision-making, there is consensus that this represents bona fide company ownership and is indeed subject to bal yeira’eh. For this reason, many versions of the shtar mechiras chametz include the sale of stocks.

In the case of a trust, these dynamics may differ. A trust is a legal entity distinct from the grantor who created it, managed by one or more trustees empowered to execute transactions on the trust’s behalf. The assets of the trust are to be distributed to designated beneficiaries at a designated time.

Revocable trusts can be amended or canceled by the grantor at any time by notifiying the trustee in writing. Irrevocable trusts, however—commonly used for tax or Medicaid benefits—are beyond the grantor’s control.

The notion that a financial entity, e.g., a trust or corporation, is independent of its members is subject to considerable debate among contemporary poskim, but this article will focus on practical guidance.

In the case of a revocable trust, the grantor is likely considered the owner with regard to bal yeira’eh, as he can regain ownership of the assets without anyone else’s consent, so the chametz shares must be sold. For the transaction to be legally binding, the trustee is the one that must sign the shtar mechirah. (Usually, in a revocable trust, the grantor makes himself the trustee for the duration of his life to maintain control.) It should be specified in the shtar mechirah that chametz assets held in trust are included in the sale.

With an irrevocable trust, one could argue that no one transgresses bal yeira’eh:

• The grantor is not subject to the prohibition because he has relinquished ownership of the assets and cannot retrieve them.
• The beneficiaries are not subject to the prohibition because they do not own the assets until they are distributed.
• The trustee is not subject to the prohibition because he acts only as an independent manager (unless he is a beneficiary as well and can make distributions to himself).

Because the halacha here is unsettled, however, it is the responsibility of both the grantor and the  to ensure that the chametz shares are sold. In this case, too, it is sufficient for the trustee to sign the document alone.

Thanks to trusts and estates attorney Meir Fleischmann for reviewing the legal aspects of this article.