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The death of Prince wasn’t just sad; it also raised questions about how to divide his estate. While Prince was intensely protective of his music, it appears he was less so when it came to his physical assets; in fact, he did not even have a Last Will and Testament or Trust. Prince’s lack of estate plan highlights the importance of planning what will happen to your assets when you are gone.
What Prince’s Lack of Last Will and Testament or Trust Means for His Estate
The fact that Prince does not have a Last Will and Testament or Trust is bad news not only for his six surviving siblings, but also for his legend as well. To be sure, his lack of estate plan means that Prince did not plan for control of his music, and that a (rumored) collection of unpublished music by Prince could be lost as a result.
In addition to losing what may have been most dear to him, Prince’s estate will also be subject to aggressive taxation – the federal tax rate is 40 percent, and the state tax rate in which the estate rests (Minnesota) is another 16 percent. According to an article in CNBC , some estimates of the value of Prince’s estate say it is worth $300 million, half of which – because of the lack of estate plan – could go straight into the government’s pocket.
How the Debacle Could Have Been Avoided
With better planning, Prince’s estate could have certainly avoided the consequences it is now facing. As someone who was not married, estate planning was even more important for the musical genius, who could have taken steps – like putting unreleased music in a Trust – to mitigate the tax burden placed on the estate and ensure that more of the estate went to his family, not the state.
Remember, if you do not have a Last Will and Testament or Trust, you give up complete control of your estate and assets at the time of your death, and put that control in the hands of the government. This means that neither you, nor your loved ones, will have any say about how assets are distributed. Not only can distributing assets without a Last Will and Testament or Trust be a time intensive and confusing process, it can also be extremely emotional and divisive for surviving loved ones.
Contact an Experienced Westport Estate Planning Attorney Today
As you age and your estate acquires wealth, it becomes more and more important each day to form an estate plan that addresses what will happen to your assets when you die. At the offices of Patricia Bloom-McDonald, Attorney at Law, I can guide you through everything you need to know about forming a comprehensive plan for what will become of your assets once you’re gone. To schedule a no-cost initial consultation with my law offices, call 508-636-6097 now.