My clients’ daughter passed away and they now have legal custody of their granddaughter. The mother (decedent) left her daughter an IRA which is to be held in a trust until the daughter reaches a specific age. There will be IRA distributions for the next five years and, therefore, there is taxable income and tax at the trust level.
The grandparents incurred legal fees relating to obtaining custody of their granddaughter. Are the legal fees a deductible expense on the trust tax return?