http://www.nytimes.com/2016/05/03/arts/music/court-names-bank-to-oversee-princes-estate-in-absence-of-a-will.html?smid=tw-nytimesarts&smtyp=cur&_r=0

"The value of Prince’s estate is unknown, and includes large areas of land near Paisley Park, his recording studios near here and his most recent residence, in addition to his music. The real estate alone is valued at about $31.3 million, according to property records, and experts estimate that the music — including unpublished recordings in Prince’s vault — is worth much more. The value of Prince’s existing catalog could be about $50 million, and thousands of hours of unreleased recordings stored in the vault might be worth another $50 million, according to Howard E. King, an entertainment lawyer who represented Prince in the past."

Still not enough in non-music assets to pay the taxes but at least it looks less dire.

How in the hell will they value the unreleased stuff anyway? That is entirely just pure guessing. If the catalog (which is far easier to value - there is a track record) is $50m, how can outtakes be worth at least as much? If I'm the family I'd argue the unreleased stuff is worth much much less.

emesem said:

Rebeljuice said:

emesem said:

http://www.nytimes.com/2016/05/03/arts/music/court-names-bank-to-oversee-princes-estate-in-absence-of-a-will.html?smid=tw-nytimesarts&smtyp=cur&_r=0

"The value of Prince’s estate is unknown, and includes large areas of land near Paisley Park, his recording studios near here and his most recent residence, in addition to his music. The real estate alone is valued at about $31.3 million, according to property records, and experts estimate that the music — including unpublished recordings in Prince’s vault — is worth much more. The value of Prince’s existing catalog could be about $50 million, and thousands of hours of unreleased recordings stored in the vault might be worth another $50 million, according to Howard E. King, an entertainment lawyer who represented Prince in the past."

Still not enough in non-music assets to pay the taxes but at least it looks less dire.

How in the hell will they value the unreleased stuff anyway? That is entirely just pure guessing. If the catalog (which is far easier to value - there is a track record) is $50m, how can outtakes be worth at least as much? If I'm the family I'd argue the unreleased stuff is worth much much less.

What do you mean not enough to pay the taxes?

Generally, the value of an estate in excess of $5.5M is subject at a 40% rate in the U.S., so the heirs will need to liquidate assets to pay those taxes. It sounds like liquidating the real estate lots will not be enough to cover everything, so the heirs will need to liquidate other (i.e., music/intangible) assets, or at least get loans secured against them.

emesem said:

http://www.nytimes.com/2016/05/03/arts/music/court-names-bank-to-oversee-princes-estate-in-absence-of-a-will.html?smid=tw-nytimesarts&smtyp=cur&_r=0

"The value of Prince’s estate is unknown, and includes large areas of land near Paisley Park, his recording studios near here and his most recent residence, in addition to his music. The real estate alone is valued at about $31.3 million, according to property records, and experts estimate that the music — including unpublished recordings in Prince’s vault — is worth much more. The value of Prince’s existing catalog could be about $50 million, and thousands of hours of unreleased recordings stored in the vault might be worth another $50 million, according to Howard E. King, an entertainment lawyer who represented Prince in the past."

Still not enough in non-music assets to pay the taxes but at least it looks less dire.

How in the hell will they value the unreleased stuff anyway? That is entirely just pure guessing. If the catalog (which is far easier to value - there is a track record) is $50m, how can outtakes be worth at least as much? If I'm the family I'd argue the unreleased stuff is worth much much less.

It will be worth whatever they can get someone to pay for it.

A bidding war will start

BanishedBrian said:

Rebeljuice said:

emesem said: What do you mean not enough to pay the taxes?

Generally, the value of an estate in excess of $5.5M is subject at a 40% rate in the U.S., so the heirs will need to liquidate assets to pay those taxes. It sounds like liquidating the real estate lots will not be enough to cover everything, so the heirs will need to liquidate other (i.e., music/intangible) assets, or at least get loans secured against them.

.

.

Yep will probably see digital/animated Prince selling all kinds of products just because the family has to pay those taxes. And definitely Little Red Corvette in some car commercials.

BanishedBrian said:

Rebeljuice said:

emesem said: What do you mean not enough to pay the taxes?

Generally, the value of an estate in excess of $5.5M is subject at a 40% rate in the U.S., so the heirs will need to liquidate assets to pay those taxes. It sounds like liquidating the real estate lots will not be enough to cover everything, so the heirs will need to liquidate other (i.e., music/intangible) assets, or at least get loans secured against them.

Thats crazy. So the music catalogue could throw a huge spanner in the works! Kind of makes the temptation for the family to say Prince wanted the vault destroyed so it has zero value... Would the family really give up all that real estate plus other investments and cash in bank accounts in order to retain the music? This is gonna get messy!