Professor Fink writes: This landmark Supreme Court case attempts to resolve a conflict among the Circuit Courts of Appeal on the interpretation of IRC Section 67(e)(1). It is hoped that the ruling in this case will provide a uniform standard for determining when investment advisory fees are subject to the 2% rule of IRC Section 67(e)(1). Knight v. Comm'r, 552 U.S. 181 (U.S. 2008).
The devil's in the details as to whether costs incurred in estate or trust administration would or would not be uncommonly, unusually or unlikely incurred by individuals. The fact-driven nature of the principle is prone to ongoing challenges.