Perhaps I didn't make it clear in my initial posting that it was a rental property.

Say you owned an office building (Sch E) in your living trust.  Someone sued you, saying he owned a portion of the property.  Wouldn't the legal fee be ordinary and necessary for defending the title of the property, which produced income for you?  I would say you'd make a good case deducting the expenses on Sch E, instead of on Sch A.  At the minimum, it would add to the basis, as it was an action for the title.