Can I deduct legal fees for estate planning?

[gglascock]

We updated our wills, Medical Power of Attorney and created revocable trust are legal fees related to these activities deductable?

[MargaretL · Accepted solution]

No, you cannot deduct legal fees for updating/correcting wills,  or for creating medical Power of Attorney.

However, you can deduct legal fees for estate planning if they are incurred for:

• the production or collection of income, or
• the management of the property held for production of income, or
• tax advice and tax planning

If your total legal fees include both, deductible and nondeductible items,  you must somehow allocate the amount between allowed and disallowed fees.