RUDKIN AND TRUSTEE'S ADVISORY FEESRUDKIN AND TRUSTEE'S ADVISORY FEES
One of the most talked about cases among panelists at the Recent Developments-2005 session at this year's Heckerling Institute on Estate Planning, held Jan. 9 through 13 in Miami, was Rudkin a case in which the Internal Revenue Service is trying to close a potential tax loophole for the wealthy. The issue in William L. Rudkin Testamentary Trust v. Comm'r, 124 T.C. 19 (June 27, 2005) is: to what extent
February 1, 2006
Rorie M. Sherman Editor in Chief
One of the most talked about cases among panelists at the “Recent Developments-2005” session at this year's Heckerling Institute on Estate Planning, held Jan. 9 through 13 in Miami, was Rudkin — a case in which the Internal Revenue Service is trying to close a potential tax loophole for the wealthy. The issue in William L. Rudkin Testamentary Trust v. Comm'r, 124 T.C. 19 (June 27, 2005) is: to what extent are trustee fees deductible by a trust for income tax purposes?
In Rudkin, the Tax Court agreed with the Service that a trust's investment advisory fees are not fully deductible: Only the portion that exceeds 2 percent of the trust's adjusted gross income (AGI) is deductible. The case is on appeal to the U...
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