Funeral and Administration Expense Estate Tax Deductions

Summary

This practice note discusses the estate tax deductions for funeral expenses, administrative expenses, claims, and losses. If you represent a client responsible for administering a decedent's final affairs, it is important to advise them on the rules regarding the deductibility of the decedent's funeral, administrative, and other expenses. Your client should also be made aware that they can deduct losses incurred during the settlement of the estate arising from fires, storms, shipwrecks, or other casualties, or from theft, if the losses are not compensated for by insurance or otherwise.