The Trust Advisor Blog reports on the confusion caused by the Supreme Court ruling in Knight v. Commissioner that trust management fees must not be bundled with trustee fees in one bill in order to be deductible. The IRS continues to delay issuing guidance on more than a year-to-year basis. In the meantime, some trusts are still treating all of their fees as deductible while others are unbundling and only deducting management fees.
Even though trust accounting systems may break down these fees easily, “figuring out where to assign every basis point of a previously unified fee may cause some consternation.”
Scott Martin, Feds Order Trust Firms to “Unbundle” Fees, Trust Advisor Blog, May 8, 2010.
