This article provides a specific outline for how the rules dealing with the deductibility of investment advisory expenses apply to estate and non-grantor trusts. There is a lot of confusion concerning the subject of the deductibility of investment advisory expenses. This article explains the application of Section 212 limitations on estates and non-grantor trusts. The IRS has also amended the date that these regulations will go into effect to begin on January 1, 2015, for all estates and trusts. There is a requirement to unbundle fiduciary and investment fees that is explained in this article. This article is the the second in a series, and there will be more in depth articles in the future dealing with these subjects. If people want to learn more about how these new rules will impact them they should speak with an estate planning professional who specializes in this area.
See Domingo Such III and Tina Milligan, Deductibility of Investment Advisory Expenses: Estates and Non-Grantor Trusts, Wealth Management, February 29, 2016.
Special thanks to Jim Hillhouse for bringing this article to my attention.
