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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10122
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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IN PREPARING A 1041 ARE LEGAL FEES TO CONSET THE WILL AND

Customer Question

IN PREPARING A 1041 ARE LEGAL FEES TO CONSET THE WILL AND CHANGE THE PERSONAL REPRESENTIVE DEDUCTABLE AND ARE THEY SUBJECT TO THE 2%
Submitted: 1 month ago.
Category: Tax
Expert:  Lane replied 1 month ago.

The general rule is that expenses that are incurred only because this is an estate or trust are fully deductible, while fees that anyone in the position of looking after investments would pay are subject to the 2 percent exclusion.

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I would say that will contest fees and changing the personal rep are both specific to trust/estate administration.

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Said differently contesting wills and replacing fiduciaries are not typical costs of managing assets UNLESS an estate or trust.

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They are deductible and not subject to the 2% floor.

Expert:  Lane replied 1 month ago.

Please let me know if you have any questions at all, before rating me.

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And if you DON'T have other questions Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …would be appreciated!

Otherwise I receive no compensation for the work.

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Thank you,

Lane

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I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, a Masters Degree, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986

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