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After six very long years, Prince's estate finally has a value. Prince, did not have a will which has eaten up tens of millions of dollars to administrate his estate to just come up with a plan to distribute it.
Two of his heir siblings, Alfred Jackson and John R. Nelson died during it and two are in their 80's. Hopefully they will live long enough to actually see some of the money.
The article said that his estate will "almost" be divided evenly between the three oldest heir siblings of his or their families and Primary Wave, a NY music company what they're calling "well funded".
The IRS and Comerica, which google says is a financial services company headquartered in Dallas, Texas were arguing over his estate, the article says that they reached an agreement on Prince's real estate portion of his estate last spring but the hardest to do was assets such as rights to his music which wasn't completed until October. I looked for an article to see the history over their lawsuit but am not finding one.
The IRS dropped a $6.4 million “accuracy-related penalty” that they put on his estate. Apparently the Minnesota Department of Revenue had to get their hands on some too, also dropped their “accuracy-related penalty.”
The taxes alone on Princes estate will be in the tens of millions of dollars!
Under the inheritance laws, $5 million is exempt from taxes, federal taxes on the rest will be 40%! Ouch! Also according to the article, the first $3 million is exempt from taxes, but after that, it says much of his estate will be taxed at 16%
I hope that people who have sizable estates see this and smarten up to make sure they have a darned good will so that their money will not be eaten up trying to value it and find heirs. Ridiculous! All of that money wasted.
The six-year legal battle over Prince’s estate has ended - January 15, 2022, 5:15 PM
Quote:
The six-year legal battle over pop superstar Prince’s estate has ended, meaning the process of distributing the artist's wealth could begin next month.
The Minneapolis Star Tribune reports that the Internal Revenue Service and the estate’s administrator, Comerica Bank & Trust, agreed to value Prince's estate $156.4 million, a figure that the artist's heirs have also accepted.
The valuation dwarfs Comerica's earlier $82.3 million appraisal. The Internal Revenue Service in 2020 had valued the estate at $163.2 million.
Prince, who died of a fentanyl overdose in 2016, did not leave a will.
Prince must have been a very lonely man. I can't imagine not having a will with this kind of wealth on hand. Only a person who feels hopeless and abandoned would not take care to ensure the future of his financial legacy.
Prince must have been a very lonely man. I can't imagine not having a will with this kind of wealth on hand. Only a person who feels hopeless and abandoned would not take care to ensure the future of his financial legacy.
My feeling about is that no one really should have had an expectation of inheriting the money. Its just good luck if they do get it. Prince could have avoided this mess by writing a Will and appointing an executor as some have already pointed out. He didn't do that. Because of the utter mess this estate was in, it took the services of many accountants and lawyers to figure out. Apparently, because of the size of the estate it was subject to a substantial inheritance tax. This made accurately valuing the estate critical. There were also tax penalties that were at issue. Plus, someone had to be paid to administer the state and its properties while the matter was being probated. I cannot say what happened really bothers me.
My feeling about is that no one really should have had an expectation of inheriting the money. Its just good luck if they do get it. Prince could have avoided this mess by writing a Will and appointing an executor as some have already pointed out. He didn't do that. Because of the utter mess this estate was in, it took the services of many accountants and lawyers to figure out. Apparently, because of the size of the estate it was subject to a substantial inheritance tax. This made accurately valuing the estate critical. There were also tax penalties that were at issue. Plus, someone had to be paid to administer the state and its properties while the matter was being probated. I cannot say what happened really bothers me.
All true, but you must admit that it resulted in a lot of wasted resources. If Prince didn't care for his potential heirs (perhaps his remaining family are horrible people) he could have willed the estate to charitable causes. Any number of foundations and organizations researching genetic disorders, such as his son died from, or supporting people with such disorders, would have been appropriate and a good use of funds.
All true, but you must admit that it resulted in a lot of wasted resources. If Prince didn't care for his potential heirs (perhaps his remaining family are horrible people) he could have willed the estate to charitable causes. Any number of foundations and organizations researching genetic disorders, such as his son died from, or supporting people with such disorders, would have been appropriate and a good use of funds.
Yes, but ultimately it was his decision to make to will the estate to either his family or a charitable cause. He did neither and the law steps in when you don't do that and distributes the estate according to the probate law of the jurisdiction.
Prince was a Jehovah's Witness. I remember reading that when he went door to door, people would occasional say, "Hey, you look like Prince", and he would just say, "I get that a lot".
Surprised that they did not lobby for a chunk of his estate.
Artistes don't concern themselves with the mundane.
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