Final answer:
Legal fees for will preparation are not tax-deductible, whereas probate fees and taxes are costs incurred post-death and may be deductible on the estate's tax return.
Step-by-step explanation:
The statement “The legal cost of having a will prepared is not deductible” refers to the Tax Law provision that legal fees associated with the preparation of a will are not tax-deductible expenses. This means that when individuals are planning their estates, the expenses they incur for drafting and finalizing their will cannot be subtracted from their gross income on their tax returns.
Probate fees and taxes, on the other hand, as documented by sources such as the Prudential Insurance Company flyer, refer to the costs incurred after a person's death when their will is being processed through the legal system.
This involves validating the will, settling debts, and distributing the remaining estate to the beneficiaries. Probate costs can often be a significant expense, and unlike the costs for preparing a will, certain probate fees and taxes may be deductible on the estate's tax return, not on the individual’s personal tax return.