Music fans across Connecticut and the entire United States mourned when Prince passed away unexpectedly in April 2016. He left behind an estate that is worth an estimated $200 million. Two years later, Prince’s heirs have yet to receive any of this money.
When Prince died, he didn’t have an estate plan or will set up to allocate money. Prince had divorced twice and had no surviving children. Therefore, his six surviving siblings were deemed to be the rightful heirs by a judge in May 2017. However, they won’t receive any money until both the Internal Revenue Service and executor agree on the value of Prince’s estate.
Though the family hasn’t been able to access the money, millions have already been paid out in taxes and attorney’s fees. The executor and lawyers have already received $5.9 million and have requested an additional $2.9 million. It is unknown how much in taxes have been collected. While experts still aren’t sure what will happen with the remaining estate, it is believed that the IRS and the state of Minnesota are entitled to approximately 50 percent, though this can be stretched out over time.
People often pass away without an estate plan or will set in place. This type of situation is known as “intestate.” Though intestate laws vary by state, the estate is typically distributed to spouses first and children next. If there are no children, the surviving spouse will likely receive all of the money. In a situation where there is no spouse or surviving children, money is next given to blood relatives. Unfortunately, such distribution may be against what the deceased intended. That’s why it’s important to partner with an attorney who can help with estate planning.