Are estate planning costs deductible?

According to a column on lowellsun.com, some are.

It says the IRS allows deduction of your legal fees and costs, but only if the estate planning is related to “income.”

Specifically, that means costs are allowed as a deduction if they are related to:

  • the production or collection of income;
  • the management, conservation or maintenance of property held by the taxpayer for the production of income or;
  • the determination, collection or refund of any tax.

The legal fee for drafting a will is normally not deductible, the column says. However, if your attorney created a trust to hold title to “income producing property,” a portion of the legal fees may be deductible, it says.

If you have questions about estate planning, feel free to call us for a consultation at (626) 696-3145.

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