Many Nevada music fans in Nevada were saddened in April 2016 when it was reported that Prince had passed away at the age of 57. The prolific songwriter and performer was a leading music industry figure for more than three decades, and it was widely reported that he had left behind a valuable estate and no will. A December court filing reveals that Prince’s music catalog, Minnesota recording studio and other assets are worth an estimated $200 million, and they are expected to be divided equally between his five half-siblings and younger sister.
The $200 million amount was arrived at based on the fee charged to the estate by a wealth management company. Some analysts, however, feel that this figure may be being kept low because of a looming estate tax bill. Experts say that Prince’s beneficiaries will likely only see about 50 cents on the dollar after all taxes have been paid. However, the continuing popularity of Prince’s music will provide them with reliable sources of income for years to come.
According to Forbes magazine, Michel Jackson’s estate earned about $825 million in 2016, and Elvis Presley’s music continues to generate tens of millions of dollars each year almost four decades after his death. Prince’s estate took in about $25 million in 2016 according to Forbes.
Experienced estate planning attorneys could suggest using trusts to wealthy individuals concerned about their estate tax exposure, and they may also recommend this strategy to those who would like their personal financial matters to remain private after they pass away. For individuals not concerned about estate taxes or privacy, attorneys may suggest drafting a last will and testament to ensure that their estates are distributed according to their wishes.