While an estate has to pay taxes on the total assets of the estate, some expenses that an estate makes are tax deductible. One of those expenses is funeral expenses. If Joan Rivers has the funeral that she said she wanted, then her estate will have a lot to deduct.
The recently deceased Joan Rivers was almost a larger than life figure. She was an iconic comedian who loved the Hollywood lifestyle and she made no attempt to hide her wealth. She even spoke about the type of funeral that she wanted, which was to be large with paparazzi and Meryl Streep crying in five different accents.
In “Saying Goodbye to Joan Rivers: The Bigger The Funeral, The Bigger The Tax Deduction,” Forbesnotes that an elaborate funeral could be paid for by Rivers’ estate and the amount could be deducted from the estate tax. Rivers, who famously hated paying taxes, would be very happy to have known about this. The IRS actually has very few rules about tax deductions for funeral expenses. The deductions are allowed as long as they comply with state and local laws and they are reasonable in light of the deceased’s lifestyle. An ordinary person could not have a funeral like Rivers wanted and have the estate deduct it all. However, for someone like Rivers, the full deduction appears to be appropriate.
If you are administering an estate that might have to pay the estate tax, then you should speak to an estate planning attorney about deducting funeral expenses and what other types of expenses can be deducted. It can save the estate a lot of money, leaving more money for the heirs.
Reference: Forbes (September 7, 2014) “Saying Goodbye to Joan Rivers: The Bigger The Funeral, The Bigger The Tax Deduction“
“On the threshold of retirement, we finally decided to quit thinking we could self-prepare the requisite documents. We had previously had only a very simple will. We needed the necessary legal (including updated will) & health care docs but didn’t want to deal with the time & complication of legalese. Cindy made the process relatively painless. She took the time to explain and answer questions without trying to upsell services. We were done in 2 meetings plus the reading of emailed drafts. In addition to preparing the documents, Nelson Eldercare will be there when our adult children need advice on executing the plans we’ve put in place.So glad it’s behind us and would recommend Cindy and her helpful staff.”
Cindy and her company treat their clients like family. Nelson’s offers clear, direct, and honest guidance in planning for your families security and future. No one wants to actively sit down and make these decisions, but Nelson’s makes this process seamless. I was so impressed with their willingness to answer all questions big or small. So glad I made the decision have them help my mom and dad and now me. You can’t go wrong with Nelson’s Elder Care Law.
The very best elder law attorney and staff anyone could ever ask for! I have referred a number of clients to Cindy and she never disappoints. She is kind, caring, and extremely thorough in making sure everything is completed as it should be. I highly recommend Cindy for anyone needing lawyer services; she truly goes above and beyond for every client she helps and has had a huge impact in so many peoples’ lives. Thank you, Cindy and staff, for everything that you do- I’m so glad to know you!
I heard Cindy’s presentation at a Senior Luncheon at my church, and was very impressed. She helped my daughter and me understand many aspects of elder law. Josh has also been very helpful in my planning to enter an independent living situation . I have told many friends about them.
Cindy and the Nelson Elder Care Law team are trustworthy and helpful. They are the experts in elder care law. At Leaf Cremation, we entrust our families to the care of the Nelson team when their services are needed.