![if gte IE 9]><![endif]><![if gte IE 9]><![endif]><![if gte IE 9]><![endif]><![if gte IE 9]><![endif]><![if gte IE 9]><![endif]>
Not a Lexis+ subscriber? Try it out for free.
LexisNexis® CLE On-Demand features premium content from partners like American Law Institute Continuing Legal Education and Pozner & Dodd. Choose from a broad listing of topics suited for law firms, corporate legal departments, and government entities. Individual courses and subscriptions available.
With April 15th approaching, it reminds us of the need to file our income tax returns. When preparing estate planning documents, clients often ask, "are these estate planning fees deductible?"
The cost to do a simple Will, Power of Attorney and Medical Directive are personal expenses and not deductible. However, a portion of the cost to prepare a comprehensive estate plan, involving a revocable trust to avoid probate and a marital and credit trust to reduce or eliminate estate taxes, is deductible.
How do you distinguish between the personal expense allocable to the non-deductible planning and the deductible expense attributable to the tax planning and the property preservation? It depends on each case and the fee charged, but it is likely 60% to 75% of the total fee is deductible. These fees are analogous to advisory fees paid to a financial planner. Of course, how this applies to your own tax return and the 2% miscellaneous deduction rule, is for you and your CPA to sought out.
Read more discussion of estate planning topics affecting Virginia residents and U.S. citizens at Dedon on Estate Planning.
. . . .
Explore the LEXIS.com Estates, Gifts & Trusts and Elder Law resources.
Discover the features and benefits of LexisNexis® Tax Center.
For more information about LexisNexis products and solutions connect with us through our corporate site.