Supreme Court Ruling Affects Trusts
January 23, 2008
People who set up trusts, including charitable trusts, will no longer be able to deduct investment advisory fees in full for income-tax purposes, reports The Wall Street Journal. A Supreme Court ruling last week indicated that those fees will be deductible only to the extent that their total, along with certain other miscellaneous deductions, exceeds 2 percent of the trust’s adjusted gross income.
The case, generally known as the “Rudkin” or “Knight” case, has the most serious implication for big estates and trusts that typically spend a great deal on investment-advisory fees, according to the article.
