Are Estate Planning Fees Tax Deductible?
When it comes to estate planning, there are many factors to consider. From deciding who will be your guardians and trustees, to organizing all of the details of your finances – it can seem overwhelming. One key question that often gets asked is whether or not estate planning fees are tax deductible. The short answer is no, they’re not—but there may be ways you can reduce the costs associated with setting up an estate plan. In this blog post, we’ll discuss why estate planning services aren’t typically considered a tax deduction and some tips for reducing the cost of creating an estate plan without sacrificing quality advice from legal professionals. Read on for more information!
Are you looking for an estate planning attorney in Milwaukee or nearby? Contact Margerie Law today.
First, What Exactly Is Estate Planning?
Estate planning is the process of making arrangements for the care and management of assets after an individual passes away. Estate plans can include a will, trust, power of attorney, and authorization documents as well as end-of-life directives. They also provide guidance on how assets should be distributed to successors and beneficiaries. By creating an estate plan, individuals can ensure that their wishes are followed and that their assets are managed in the way they desire.
What Fees Can You Expect When Estate Planning?
When estate planning, costs and fees depend mostly on what you’re looking to do. A basic estate planning package will cost anywhere from about $500-$1500 when you work with an experienced estate planning attorney. Other costs can include filing fees for legal documents, administrative costs associated with the probate process, and trust setup fees. You may also be charged fees for financial and tax advice as well as fees related to managing the trust over time. Other costs may be associated with setting up investments or transferring assets. By doing research ahead of time and talking with a local Wisconsin estate planning lawyer, you can get an idea of what type of costs are associated with estate planning and budget accordingly.
Are Estate Planning Fees Tax Deductible?
You used to be able to deduct estate planning fees on your taxes. However, due to recent changes in IRS Rules and the Tax Cuts and Jobs Act, estate planning fees are currently not currently eligible for a deduction. This means that taxpayers need to pay closer attention to the estate planning process in order to avoid additional costs and ensure their finances are properly managed.
One thing to note: these tax deduction rules will sunset in 2025. So, if they are not renewed or we experience a change in administration, estate planning fees may once again be tax deductible.
Is Estate Planning Worth the Cost?
Estate planning is worth the upfront cost for a variety of reasons. Planning for your estate can help ensure that your wishes are followed, protect your assets from taxes, and provide peace of mind for you and your family. Having an estate plan in place also makes it easier to manage assets, transfer ownership if necessary, and resolve any conflicts that may arise after death. With careful consideration and planning, you can leave behind a legacy that will be carried out according to your wishes.
Who Should Have an Estate Plan?
Everyone should consider having an estate plan, even if they do not think they need one. Estate planning is especially important for those who own property such as a home or investments, have minor children, or wish to pass on their assets to certain heirs. It is also essential for those who have complex financial arrangements and special charitable wishes. An estate plan provides peace of mind for you and your family, so it is worth the time and cost to create one.
Do you have more questions or are you looking to get started crafting your estate plan? If you live in Wisconsin, Attorney Paul Margerie of Margerie Law is the resource for you. We help people at all stages of life (with a focus on young families) craft customized wills, trusts, and other estate planning documents to protect their futures. Click here to learn more and contact Margerie Law today.