Famous Near Are Tax Attorney Fees Deductible For Estate Planning 2023

When are attorney fees tax deductible On what basis? from thelawadvisory.com

Near are Tax Attorney Fees Deductible for Estate Planning?

Introduction

Estate planning is an essential aspect of managing your assets and ensuring that they are distributed according to your wishes after your death. However, the process of estate planning can be challenging and complex, requiring the assistance of a tax attorney. The question that arises is whether tax attorney fees are deductible for estate planning.

Tax Attorney Fees and Estate Planning

The short answer is yes, tax attorney fees are deductible for estate planning. However, there are several conditions that must be met for the deduction to be allowed. First, the fees must be related to the preparation of your estate plan. Second, the fees must be reasonable and customary for the services provided. Third, the fees must not be paid for the production of income or the management of investments.

Reasonable and Customary Fees

The IRS allows deductions for reasonable and customary fees for estate planning services. This means that the fees charged by your tax attorney must be typical for the area and the services provided. If the fees charged by your attorney are significantly higher than those charged by other attorneys in the area, the deduction may be disallowed.

Not for Income Production or Investment Management

The IRS does not allow deductions for tax attorney fees that are paid for the production of income or the management of investments. This means that if your attorney is helping you to invest your assets, the fees charged for that service are not deductible. However, if your attorney is helping you to structure your estate plan in a tax-efficient manner, those fees may be deductible.

Other Deductible Estate Planning Expenses

In addition to tax attorney fees, there are several other estate planning expenses that may be deductible. These include fees for preparing and filing estate tax returns, fees for appraisals of property, and fees for fiduciary services.

Conclusion

In conclusion, tax attorney fees are deductible for estate planning, but only under certain conditions. The fees must be related to the preparation of your estate plan, reasonable and customary for the area and services provided, and not paid for the production of income or the management of investments. If you are considering hiring a tax attorney for estate planning services, it is important to discuss the fees and their deductibility with your attorney before proceeding.

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