My father's estate passed to his widow who died in 2008. It was quite complicated, with assorted trusts for purposes of minimizing taxes, I believe. The executor was/is a family friend/lawyer; he hired an estate specialist and an accountant to work thru the mess. We thought it was done and all the proceeds properly distributed and the administrative trust that had been established to handle it was closed in 2008..
Sometime in 2010, the state of Louisiana sent the 3 heirs, myself being one of them, that because the administrative trust had been set up in Louisiana (the executor lived there), we owed Louisiana *income* taxes even though none of the money derived from the trust was earned there (all in California). Another accountant had to be hired to get Louisiana to back down from their position. We 3 heirs are now being billed our proportionate share of the total bill ($300) for fighting this case, because the executor says, I think correctly, that if the trust was still open, it would have had to pay the expense.
I'm not quibbling at my $75 piece of the cost, but am wondering if it can be deducted from anything on Schedule A in 2011. What category would it fall under, if it does?
Thanks,
jo