Are Estate Planning Fees Tax Deductible? A Clear Answer for 2025

Estate planning is one of the most important steps you can take to protect your family, your assets, and your wishes, but it’s also a financial investment. A common question many clients ask is: “Are estate planning fees tax-deductible?”

At Kamini Fox Law PLLC, we help clients understand not just the legal value of estate planning, but how it fits into their overall financial picture. Here’s what you should know about the tax treatment of estate planning fees, when they might be deductible, and how to plan efficiently under current law.

Are Estate Planning Fees Tax Deductible?

In most cases, no. As of 2025, the IRS does not allow individuals to deduct personal estate planning fees on their federal tax returns.

Prior to 2018, some legal and financial planning fees could be partially deducted as miscellaneous itemized deductions. But the Tax Cuts and Jobs Act (TCJA) eliminated these deductions through the end of 2025. This means fees related to drafting a will, creating a trust, or setting up powers of attorney are considered personal expenses and are not currently deductible.

When Estate Planning Fees Might Be Deductible

There are some narrow exceptions, primarily for business owners or estate administrators.

Business-Related Estate Planning

If your estate plan includes services directly related to your business, such as drafting a buy-sell agreement or business succession plan, those specific legal fees may qualify as ordinary and necessary business expenses. These costs may be deductible as part of your business’s tax return.

Estate Administration After Death

Legal and accounting fees incurred in the administration of an estate after death may be deductible on the estate’s income tax return, not on an individual’s personal return. These expenses can include filing the decedent’s final tax return, distributing assets, and managing estate tax issues.

Examples of Non-Deductible Estate Planning Fees

• Drafting or updating a Last Will and Testament

• Creating a revocable living trust

• Establishing healthcare proxies or powers of attorney

• Consulting with an attorney about personal asset distribution

• General financial planning for personal or family matters

These expenses are considered personal and are not deductible under current tax rules.

Key Takeaways: Estate Planning and Tax Deductions

• Personal estate planning fees are not deductible for individuals under current federal tax law

• Business-related estate planning expenses may be deductible as business expenses

• Legal fees related to administering an estate after death may be deductible on the estate’s return

• The temporary suspension of miscellaneous itemized deductions is in place through the end of 2025

• Even without a tax deduction, estate planning remains a critical and financially sound decision

FAQ: Are Estate Planning Fees Tax Deductible?

1. Can I deduct the cost of preparing a will or trust? 

   No. These are classified as personal legal expenses and are not deductible under current tax law.

2. Are legal fees for a business succession plan deductible? 

   Yes, if the fees are directly related to your business operations and planning. These expenses may be deductible as part of your business tax return.

3. Can an executor deduct legal fees for administering an estate? 

   Yes. Legal and tax preparation fees paid by the estate for post-death administration may be deductible on the estate’s tax return (Form 1041).

4. Will estate planning fees become deductible again? 

   It’s possible. The suspension of these deductions under the TCJA is currently set to expire after tax year 2025, but future legislation may extend or modify the rules.

Why Estate Planning Still Makes Sense

Tax deductibility aside, estate planning offers long-term value that far exceeds the up-front cost. A complete estate plan helps your family avoid probate delays, reduces legal uncertainty, protects vulnerable loved ones, and ensures your healthcare and financial wishes are honored.

At Kamini Fox Law PLLC, we design estate plans that are legally sound and financially practical. If you have questions about structuring your estate or minimizing future tax burdens, we’re here to help.

Contact us today to schedule your consultation.