by Aaron D. Frishman / May 6, 2026
When tax season rolls around, most people are looking to take advantage of as many tax breaks and deductibles as they can.
If you are investing in an estate plan, you may be wondering: are estate planning fees tax deductible, and can those costs reduce your tax bill? We hear all sorts of variations of this question, such as “Are legal fees for estate planning tax deductible?” or “Are attorney fees for estate planning tax deductible?”
But while the wording may vary, the answer is largely the same under current tax law. Since estate planning often involves tax strategy, asset protection, and financial structuring, it feels like it should qualify as a deductible expense.
Unfortunately, under current tax law, most estate planning fees are not tax deductible for individuals. However, there are important exceptions that can apply depending on your situation.
Understanding the difference can help you avoid costly mistakes and make more informed decisions about your financial future.
Key Takeaways:
Estate planning fees are not tax deductible for individuals.
Changes under the Tax Cuts and Jobs Act eliminated many deductions through 2025. The One Big Beautiful Bill Act made those changes permanent.
Some trust and estate administration fees may still be deductible.
Business and income-related planning may qualify in limited situations.
Working with both an attorney and a CPA can help you structure your planning effectively.
Estate planning fees cover the legal services involved in preparing for the management and distribution of your assets.
This often includes:
Drafting a will or trust
Creating powers of attorney
Preparing healthcare directives
Structuring assets to minimize taxes or avoid probate
In many cases, these services overlap. A single estate plan may include both personal legal planning and tax-related advice.
That distinction matters because the IRS treats personal expenses very differently from income-related or business expenses.
Related: Beyond the planning: Your estate planning checklist
Before 2018, the rules were more flexible.
Under Internal Revenue Code Section 212, certain expenses related to producing income or managing investments could be deducted. This included some legal and accounting fees.
In the estate planning context, that meant:
Fees tied to tax advice could sometimes be deducted
Fees related to income-producing assets might qualify
However, even under those rules, not all estate planning fees were deductible. Only the portion directly connected to tax advice or income generation could be claimed.
The majority of personal planning costs were still not deductible.
The rules changed significantly with the passage of the Tax Cuts and Jobs Act. This law suspended most miscellaneous itemized deductions from 2018 through 2025, eliminating one of the primary ways people previously deducted estate planning costs. That suspension was originally set to expire at the end of 2025. However, the One Big Beautiful Bill Act, signed into law on July 4, 2025, made these changes permanent.
As a result, individuals can no longer deduct:
Estate planning legal fees
Tax preparation fees tied to personal planning
Investment management fees in many cases
This is no longer a temporary rule waiting to be revisited. The elimination of these deductions is now permanent law.
For individuals, no.
The IRS classifies estate planning as a personal expense. Personal legal expenses are not tax deductible. Even if your estate plan includes tax strategy, that alone does not make the fees deductible under current law.
This is where many people get tripped up. The presence of tax planning does not automatically create a tax deduction.
While most individuals cannot deduct these costs, there are a few important exceptions.
When fees are paid by a trust or estate after death, different rules apply.
Under Internal Revenue Code Section 67(e), certain administrative expenses may be deductible. This can include:
Trustee fees
Legal fees related to administering the estate
Accounting and tax preparation fees
For example, if a trustee hires an attorney to help manage distributions, resolve creditor claims, or guide the administration process, those costs are generally considered part of administering the estate and may be deductible by the estate itself.
In this case, those expenses can be deducted on the estate’s income tax return (Form 1041) or the estate tax return (Form 706). It’s also important to note that these deductions apply to the estate or trust itself, not to the individual who created the estate plan.
If part of your estate planning is directly tied to a business or income-producing asset, some costs may qualify as deductible expenses.
The key factor is whether the legal work is connected to producing or managing income. Examples include:
A business owner working with an attorney to create a succession plan for their company.
Structuring ownership of rental properties to streamline management or transfer.
Planning that involves partnerships, LLCs, or other income-generating entities.
In these situations, a portion of the legal fees may be treated as a business or investment expense rather than a personal one. However, this does not apply to the entire estate plan. Only the portion clearly tied to income-producing activities may qualify. Because of this, how the attorney structures and itemizes their billing can make a meaningful difference.
This is a narrower category than many people expect, but in certain circumstances, fees specifically allocated to tax advice may still be deductible for businesses or estates.
For a deduction to apply, the tax-related work typically needs to be:
Clearly identified as separate from general estate planning
Documented in a detailed invoice
Directly tied to tax reporting, compliance, or strategy
For example, if an attorney works with a client and their CPA to develop a tax strategy for transferring business interests or minimizing estate tax exposure, the portion of the fee related to that tax analysis may be treated differently. Without clear allocation, however, the IRS is unlikely to allow a deduction.
If an estate is required to file a federal estate tax return, the associated preparation fees are typically deductible by the estate. This includes work related to preparing and filing Form 706, as well as supporting documentation.
It's worth noting that the federal estate tax exemption increased significantly under the One Big Beautiful Bill Act, rising to $15 million per person (or $30 million for married couples) in 2026.
As a result, fewer estates will be subject to federal estate tax and therefore required to file Form 706. Because of this higher threshold, our discussions with clients have largely shifted to state-level estate tax planning and income tax planning. For those who still exceed this threshold, the legal and accounting fees tied to that process are generally considered necessary administrative expenses and remain deductible by the estate.
Similar to other exceptions, this deduction belongs to the estate, not to the individual who created the estate plan.
Related: Estate Tax Planning: Smart Strategies to Preserve Your Wealth
While it is natural to focus on whether estate planning fees are tax deductible, that is rarely the most important question. A more helpful approach is to look at the broader value of a well-designed estate plan.
A thoughtful plan can help you:
Avoid probate or minimize court involvement
Reduce potential estate taxes where applicable
Protect assets for your family and future generations
Provide clarity and reduce the likelihood of disputes
In our experience, clients often come in focused on tax savings, but leave with a clearer understanding that the real benefit of estate planning is control and protection.
For example, avoiding probate alone can save families significant time, expenses, and stress. Preventing disputes between family members can preserve relationships that might otherwise be strained or permanently damaged.
The stakes are even higher for business owners. Without a clear succession plan, a business can face uncertainty, operational disruption, or even forced liquidation.
These examples highlight why coordination with both an estate planning attorney and a CPA matters. This coordination allows you to:
Identify opportunities for tax efficiency where they actually exist
Ensure fees are properly categorized and documented
Align your legal strategy with your broader financial plan
Finally, remember that estate planning is not a one-time event. As your assets, family situation, or business interests evolve, your plan should evolve with them.
If you are evaluating your options, it can be helpful to explore related areas such as trust planning, asset protection, and probate avoidance. These are often where the greatest long-term value is created.
Related: Top 15 FAQs About the Probate Process in Oregon Answered
Are attorney fees for estate planning tax deductible?
For individuals, no. Estate planning fees are considered personal expenses and are not deductible for individuals under current tax law. Some exceptions apply for trusts and estates.
Can a trust deduct legal fees?
Yes, if the fees are related to trust administration.
Are probate or estate administration fees deductible?
In many cases, yes, if they are paid by the estate and related to administration.
Can I deduct fees for setting up a trust?
Generally no, if the trust is part of personal estate planning. However, certain trust administration expenses after death may be deductible by the trust.
Are revocable trust fees tax deductible?
No. Fees for creating or maintaining a revocable living trust are typically considered personal and not deductible.
Are estate administration fees tax deductible?
Often yes. Fees paid by an estate for administration, legal services, or tax preparation may be deductible by the estate.
Can business owners deduct estate planning costs?
Possibly. If part of the planning is directly related to a business or income-producing activity, a portion of the fees may qualify as a business expense.
Most estate planning fees are not tax deductible under current law. However, exceptions do exist, particularly for trusts, estates, and certain business-related activities. The key is understanding how the rules apply to your specific situation.
Most importantly, remember that estate planning is about protecting what you have built and creating a clear plan for the future. It goes far beyond taxes.
If you have questions about how estate planning fits into your overall financial strategy, the experienced estate planning attorneys at Gevurtz Menashe are ready to help guide you. Schedule a consultation to start planning for the future with peace of mind.
