We generally bill for estate plans after we have provided you with draft documents and later upon completion of all legal work. A bill is payable upon receipt unless you make other arrangements in advance.
Our estate planning bills are usually broken down to show work performed on each date. We also identify what portion of our legal work is attributable to tax advice. The portion of your bill attributable to tax advice is deductible for federal income tax purposes with respect to the year in which the bill is paid if, in combination with your other “miscellaneous itemized deductions” for that tax year, it exceeds two percent of your adjusted gross income. The other portions of your bill are not deductible for federal income tax purposes.
Your bill may also have a component, called “disbursements,” which is not a bill for legal fees, but instead reflects a pass-through to you of the firm’s out-of-pocket costs incurred while working for you. These disbursements may include the costs of long-distance telephone calls, facsimiles, express deliveries and, sometimes, filing and recording fees and similar items.