Following Prince‘s death, one of the tidbits of information about him that surfaced was that he didn’t have a will. With his net worth estimated in the hundreds of millions, things could get messy.
It’s been speculated that the estate will be inherited by Prince’s heirs (his sister and five half-siblings). But before that happens, the IRS requires a third party to complete a valuation of his estate on the date of his death. Regardless what the actual value ends up being, we know that Prince will be paying the full Estate Tax on his assets. According to Forbes:
“The IRS is going to be a partner with the estate for a long time to come to the tune of 40 cents on the dollar,” explains Martin Neumann, a partner at Weinstock Manion with expertise in probate and estate planning. With a maximum federal tax bill of 40% and a maximum state tax of 16%, the taxes temper out to a 50% tax bill. For an estate worth a reported $300 million by current estimates, it could be paying up to $150 million in taxes.
No matter what happens, the tax man always wins. Taking half of his earnings during his life wasn’t enough, apparently.
There is a silver lining for Prince fans however…
There is the possibility that the estate would move to monetize some of Prince’s current assets to pay off taxes. Among the potential moneymakers is a vault of some 2,000 unreleased songs, which fans would pay a premium to buy or stream.
What do you think about the Estate Tax? It was put into law to pay for WWI, but it appears that our government has forgotten that the war is long over!
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