When it comes to preparing for the future, estate planning is one of the most important steps you can take to protect your assets and your loved ones. It ensures that your property is distributed according to your wishes and that your legal and financial affairs are in order. But a common question clients ask is: “Is estate planning tax-deductible?”
The answer is not always straightforward. While some aspects of estate planning may be tax-deductible under certain conditions, most personal estate planning costs are not deductible under current IRS rules. Let’s explore what you need to know, the exceptions that may apply, and why working with an experienced estate planning attorney in OKC is crucial to making the most of your planning efforts.
Estate planning involves more than just writing a will. A comprehensive estate plan may include:
Whether you're creating a basic will or a complex trust structure, working with a skilled probate attorney or estate planning professional can help you ensure that your wishes are carried out effectively and legally.
As of recent tax law changes under the Tax Cuts and Jobs Act (TCJA), most legal and professional fees associated with personal estate planning are not tax-deductible.
Before 2018, some estate planning expenses could be categorized as miscellaneous itemized deductions, which were deductible to the extent that they exceeded 2% of a taxpayer’s adjusted gross income (AGI). However, the TCJA eliminated these types of deductions from 2018 through at least 2025.
This means that, in most cases, legal fees related to personal estate planning—such as drafting wills, setting up living trusts, or healthcare directives—are not tax-deductible.
Yes—there are limited circumstances where some estate planning fees may still be deductible. The key factor is whether the expense is incurred for the production or collection of income or related to tax planning for income-producing assets.
Here are a few examples:
If part of your estate plan involves establishing a trust that is used to manage income-producing assets, like rental properties, investment portfolios, or business income, then the costs associated with setting up and maintaining the trust may be deductible. This generally applies to:
The portion of legal or tax advisory fees that relate directly to managing or producing taxable income may be considered deductible for the trust, not necessarily the individual.
If you're a business owner and some estate planning efforts are directly tied to your business succession or transfer plans, certain legal expenses might be considered business expenses and may be deductible as such.
If you consult a financial advisor or attorney for tax-specific planning, such as minimizing estate or income taxes related to your estate plan, some portion of those fees could potentially be deductible if properly documented.
It’s essential to consult a qualified estate planning attorney in OKC and a tax professional to determine what portions of your estate planning process might fall into a deductible category.
A common area of confusion is the difference between estate tax and income tax. While estate planning itself may not be tax-deductible, proper planning can help reduce or avoid estate taxes, capital gains taxes, and income taxes for your heirs.
All of these strategies can help minimize the tax impact on your estate, but they do require skilled legal guidance.
While it may be tempting to use online templates or do-it-yourself estate planning tools, the truth is: estate planning involves a range of legal and financial considerations that are best handled by professionals.
At Ball Morse Lowe, our experienced estate planning attorneys in OKC are here to guide you through every step of the process. We work with individuals and families to create customized estate plans that reflect your values, protect your assets, and ensure your legacy.
We’ll also help you understand which elements of your estate plan may involve tax considerations and coordinate with your CPA or financial advisor when needed.
While estate planning fees are generally not tax-deductible, the bigger picture is about what you save in the long run, not just in taxes, but also in avoided disputes, legal delays, and administrative confusion for your loved ones.
An estate plan is an investment in your family's future. Whether it's protecting minor children, preserving a family business, or simplifying the probate process, the peace of mind that comes from a comprehensive estate plan far outweighs any lost deduction.
At Ball Morse Lowe, we provide compassionate, knowledgeable legal guidance for families and individuals at every stage of life. Whether you're planning your estate, navigating probate, or seeking tax-saving strategies, we’re here to help.
Call us today at 405.701.5355 to schedule a consultation with an experienced estate planning attorney in OKC. Let us help you take the right legal steps to secure your legacy.