radkiss75
New Member

Are legal fees deductible for probate issues that are due to my wife concerning her mothers estate

 
bwa
Alumni
Alumni

Deductions & credits

Legal expenses for probate are deductible, but they are deductible to the estate on the estate's income tax return (Form 1041) if required to file them.

If you paid the legal fees for probate you should be reimbursed by the estate before any distributions are made to beneficiaries.

Deductions & credits

This money came from the sale of my late husband's father's house.  It was a check from his sister.  The father's estate had already gone through probate and we received the inheritance.  This check was from a business account after my husband passed.  I was told to put it in an account set up for my late husband's estate and put it through probate before I could distribute it to myself and his children.  The probate atty took their payment before any money was paid to us.  I want to know if the payment is deductible.

 

JamesG1
Expert Alumni

Deductions & credits

Legal fees are deductible on the estate’s income tax return (form 1041).  See the instructions for form 1041 page 25 here.  See also here.

 

Line 14—Attorney, Accountant, and Return Preparer Fees Expenses for preparation of fiduciary income tax returns, the decedent's final individual income tax returns, and all estate and generation-skipping transfer tax returns, are fully deductible. However, expenses for preparing all other tax returns, including gift tax returns, are considered costs commonly and customarily incurred by individuals and are not deductible.

 

I am sorry for your loss and that you have to deal with all of these complications.

 

Do I understand correctly?  Your husband passed.  A checking account was set up for your late husband’s estate.

 

You received a check and it was deposited in the checking account for your late husband’s estate.

 

I am unsure whether the check was some settlement from his father’s estate or something else?

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