The U.S. Supreme Court heard arguments in a case involving the ability of trusts to deduct fees for investment advice.

The case, Knight v. Commissioner of Internal Revenue, involved a statute in the Tax Code that allows amounts to be fully deducted if they are "costs which are paid or incurred in connection with the administration of the estate or trust and which would not have been incurred if the property were not held in such trust or estate." The proceedings involved the question of whether trusts and fiduciary obligations had a distinctive nature and if they differed from the fees for investors, and if they were subject to a 2 percent floor.

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