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Deductibility of legal personal representative legal costs

Check if legal costs you incur as the legal personal representative (LPR) are deductible.

Last updated 1 May 2023

In general, legal costs you incur as the legal personal representative (LPR) in administration of a deceased estate are not deductible. There isn't a sufficient connection or relationship between the legal cost and the production of income from the estate.

Legal costs are also considered capital in nature.

Legal costs you incur may, however, form part of the CGT cost base of the estate assets.

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Example: legal costs to confirm the validity of the deceased’s will and obtain probate

Miranda is the executor (LPR) of a deceased estate. The deceased’s will provides for distributions to be made to specific beneficiaries.

However, a number of the beneficiaries contested their entitlements.

As a result, Miranda incurred legal costs on behalf of the estate to defend the action against the will. Miranda successfully obtained a grant of probate.

Miranda can't claim a deduction for these legal costs as they are capital in nature.

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