Legal Question in Wills and Trusts in New Jersey

Re: Estate can Pay Legal Fees

It depends.

If a court allowed legal fees to be paid from the estate, generally, they would be deductable estate expenses. However, if someone contested the Will and lost, and their fees were not allowed by the court as payable from the estate, it's unlikely the IRS or NJ would allow them as deductions.

Re: Estate can Pay Legal Fees

Fees are permitted under the Rules of Court in Probate matters. The validity of these as far as taxes or legality will depend as noted by the prior guru answer.

If the court awarded fees to both sides, the legitimacy is more likely. However, this is an issue for a tax expert. In general terms if inheritance tax is due these fess are a deduction.