§ 13986. Expenses of Funeral and Last Illness.

(a) In General. Except as otherwise indicated in this regulation, funeral and last illness expenses of a decedent are allowable as deductions from the market value of property transferred by the decedent, if:

(1) The expenses were obligations of the decedent or his estate; and

(2) They were paid by the estate or the transferee of the property after the decedent's death.

(b) Last Illness Expenses Paid Prior to Death. If last illness expenses were paid prior to decedent's death out of a survivor's property and there is a probate estate, such expenses are deductible from the probate estate if a claim therefor is filed, allowed, and approved in the estate; otherwise they are not deductible.

If last illness expenses were paid prior to decedent's death out of a transferee's property, and there is no probate estate, they are deductible from transfers to that person.

(c) Funeral Expenses. Funeral expenses include any reasonable expense incurred in keeping with decedent's standard of living for any of the following:

(1) Burial.

(2) A burial plot, either for the decedent alone or for the decedent and members of his family.

(3) A tombstone, monument or other memorial.

(4) Perpetual care of the burial plot.

Funeral expenses paid out of insurance proceeds or from social security benefits which proceeds or benefits are not payable to or included in the estate are not deductible, see Section 13981.

Note

Note: As to the deduction of funeral and last illness expenses of a deceased wife, see Revenue and Taxation Code Section 13986.

Note: Reference: Section 13986, Revenue and Taxation Code.