Joan Rivers’ Funeral Could Be a Big Deduction
As I have previously discussed, Joan Rivers laid out the intricate, yet humorous, wishes for her funeral in her 2012 book, “I Hate Everyone . . . Starting With Me.”
Rivers passed away on September 4th and with all her millions, her funeral arrangements, including “Meryl Streep crying, in five different accents” should be fairly easy to arrange. What’s more, is the fact that the expenses associated with her funeral are tax deductible for federal estate tax purposes.
While neither Congress nor the IRS has stepped in to provide specific limitations on funeral expenses, the IRS does offer some general guidance via memos and their positions in court cases. The cap on deductions is largely interpreted in accordance with state and local laws but is also subject to a reasonableness standard based on facts and circumstances. Thus, if Rivers really did have the funeral of her dreams, the associated expenses are likely deductible because they reflect her lifestyle and position, and we expect a bigger than life from Joan Rivers.
See Kelly Phillips, Saying Goodbye to Joan Rivers: The Bigger the Funeral, The Bigger the Tax Deduction? Forbes, Sept. 7, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.