Are Estate Planning Fees Tax-Deductible? Here’s What You Need to Know

Kamini Fox
Jul 11
3 min read

When it comes to estate planning, many people wonder: Are estate planning fees tax-deductible? After all, creating a comprehensive estate plan can involve attorney fees, financial advisor costs, and other expenses. While proper estate planning is an investment in your family’s future, understanding the tax implications of these fees is essential.

At K Fox Law PLLC, we’re here to help you navigate the legal and financial aspects of planning your estate. Let’s break down what the IRS says about deducting estate planning fees and what options you have.

Are Estate Planning Fees Tax-Deductible?

The short answer is: Most estate planning fees are not tax-deductible for individuals.

Historically, some estate planning costs—like those related to managing taxable assets—were partially deductible as miscellaneous itemized deductions on Schedule A of your tax return.

However, under the Tax Cuts and Jobs Act (TCJA) of 2017, these deductions were eliminated for tax years 2018 through 2025.

This means individuals can no longer deduct attorney fees or other professional costs related to personal estate planning.

What About Business Owners?

There’s one important exception: business-related estate planning expenses.

If a portion of your estate plan involves work directly tied to your business, such as:

Drafting a buy-sell agreement
Creating a business succession plan
Consulting on business tax strategies

…then those fees may still be considered an ordinary and necessary business expense and may be deductible. Always consult a tax professional to confirm which costs qualify.

Examples of Non-Deductible Estate Planning Fees

Drafting a Last Will and Testament
Creating a revocable living trust for personal assets
Establishing powers of attorney or healthcare directives
General advice about distributing personal property

These are considered personal expenses under current tax law and cannot be deducted.

Why Estate Planning Is Still Worth the Cost

Even without a tax deduction, investing in a comprehensive estate plan saves your loved ones time, stress, and money later. A properly drafted plan can:

✅ Avoid probate

✅ Minimize estate taxes

✅ Protect your assets

✅ Ensure your healthcare and financial wishes are honored

The long-term financial and emotional benefits far outweigh the up-front cost.

Can Future Tax Laws Change This?

Possibly. The elimination of miscellaneous itemized deductions is set to expire after 2025 unless Congress extends it. This means deductibility of estate planning fees may return in the future, but for now, individuals should plan as if these fees are non-deductible.

Estate Planning Tax Deduction FAQ

Are attorney fees for a trust tax-deductible?

No. Most fees for setting up a trust are considered personal expenses and are not deductible under current tax law.

Can I deduct estate planning fees as a business owner?

Possibly. If the planning relates to your business—like succession planning or buy-sell agreements—those fees may qualify as a deductible business expense.

What about tax preparation fees during estate planning?

Tax preparation fees for preparing personal tax returns are not deductible. However, if they are related to the administration of an estate or trust after death, some may be deductible on the estate’s tax return.

Will estate planning fees become deductible again?

The current suspension of miscellaneous itemized deductions ends in 2025 unless extended. It’s possible these deductions could return in the future.

Get Expert Guidance from K Fox Law PLLC

While most estate planning fees aren’t tax-deductible, working with a knowledgeable attorney ensures your plan is as tax-efficient as possible. At K Fox Law PLLC, we help clients structure their estate plans to reduce future tax burdens and protect their assets.