The death of music superstar Prince portends a mess when it comes to settling his estate.
A story on investmentnews.com says the relevant parties must determine just how much the government will take, to start with. But because his estate is going to be so large, that could set off a long feud, it says.
The trouble boils down to placing a value on intangible assets, such as future royalties that may be earned from his body of work.
Reportedly, Prince had amassed a fortune worth around $300 million. But that’s likely to go way up as people buy his music in the aftermath of his death. Plus, there are many recordings yet to be released. That will be factored in by the IRS.
Such a battle is currently underway over the value of singer Michael Jackson’s estate.
Details of Prince’s Will had not been made public at the time of the story’s publication. The estate has 15 months to file a return. He was unmarried.
The US assesses a 40 percent tax on estates worth over $5.45 million. Minnesota, where Prince lived, also has a separate estate tax, with a top rate of 16 percent.
If you have questions about estate planning, feel free to contact us for a consultation at (626) 696-3145.
