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Link to court documents: http://www.mncourts.gov/I...elson.aspx

It's final — Prince's estate is worth $156.4 million

Much more behind the source

After nearly six year of legal wrangling, parties to Prince's estate have finally agreed on its value: $156.4 million.

That's far more than the $82.3 million appraisal by the estate's administrator, Comerica Bank & Trust, but not much less than the tax collector's assessment. The Internal Revenue Service in 2020 had valued the estate at $163.2 million.

With an agreement between Comerica and the IRS — with the OK from Prince's heirs — the process of distributing the star musician's wealth could begin in February.

"It has been a long six years," L. Londell McMillan, an attorney for three of Prince's siblings said at hearing Friday in Carver County District Court.

Another interesting note:

In the end, the estate will be almost evenly divided between a well-funded New York music company — Primary Wave — and the three oldest of the music icon's six heirs or their families.

The IRS and Comerica settled last spring on the real-estate portion of Prince's estate. But the trickier task of valuing intangible assets such as rights to Prince's music was not completed until October.

The value of that settlement — $156.4 million — was disclosed Friday in a filing in Carver County probate court.

As part of the agreement, the IRS dropped a $6.4 million "accuracy-related penalty" it had levied on Prince's estate. The Minnesota Department of Revenue, which agreed on the estate's valuation, also has jettisoned an accuracy penalty, the filing said.

Tax collectors will take a bite out of Prince's fortune that will run into the tens of millions of dollars.

The Proposed Court Order indicates there is going to be a distribution to the beneficiaries soon.

The Estate is winding down.

And now what happens? Who will be in control of PP?

PennyPurple said:

And now what happens? Who will be in control of PP?

The beneficiaries.

ISaidLifeIsJustAGame said:

PennyPurple said:

And now what happens? Who will be in control of PP?

The beneficiaries.

That is wholly untrue.

I have a bad feeling for the future...i guess that future things might be difficult to finalize 4 us fans !

This is why everyone should write a will. If you are reading this and haven't written your will, what are you waiting for?

DonRants said:

This is why everyone should write a will. If you are reading this and haven't written your will, what are you waiting for?

Whilst I understand this is generally very good advice, I'm not sure what Prince could have done. He had no Wife, no Children, an often complicated relationship with his family, who could he have left it all to ? Even if he gave it all to Charity, Paisley Park would then be in doubt and someone would still need to operate the Record releases. Also, just because you specify your wishes in a will that doesn't mean anyone is obliged to carry them out.

love2thenines2003 said:

Here's a snip from the article

Primary Wave bought out all or most of the interests of Prince's three youngest siblings, including Jackson, who died in August 2019. Three older siblings — including John Nelson, who died in September — rejected offers from Primary Wave.

The three older siblings last year transferred an undisclosed portion of their stake to McMillan and Charles Spicer, who have represented them in estate proceedings. McMillan is a veteran New York entertainment lawyer who worked with Prince for several years; Spicer is a New York musician and producer.

TrivialPursuit said:

ISaidLifeIsJustAGame said:

The beneficiaries.

That is wholly untrue.

Why state something is wholly untrue but then NOT say what facts you believe to be true?

ISaidLifeIsJustAGame said:

TrivialPursuit said:

That is wholly untrue.

Why state something is wholly untrue but then NOT say what facts you believe to be true?

I could ask you the same thing: Where's your proof that Prince's siblings will be suddenly marching into Paisley Park and arranging tours or something?

TrivialPursuit said:

ISaidLifeIsJustAGame said:

Why state something is wholly untrue but then NOT say what facts you believe to be true?

I could ask you the same thing: Where's your proof that Prince's siblings will be suddenly marching into Paisley Park and arranging tours or something?

lmfao, I never said the siblings were going to march into Paisley Park.

My proof is in the filed Court documents which I read instead of getting my information from a Star Tribune article.

By the way, in case you haven't heard, the beneficiaries of the Estate include more than the just siblings.

ISaidLifeIsJustAGame said:

TrivialPursuit said:

I could ask you the same thing: Where's your proof that Prince's siblings will be suddenly marching into Paisley Park and arranging tours or something?

lmfao, I never said the siblings were going to march into Paisley Park.

My proof is in the filed Court documents which I read instead of getting my information from a Star Tribune article.

By the way, in case you haven't heard, the beneficiaries of the Estate include more than the just siblings.

I think it's sorta apples and onions here.

Let me be more clear: Distribution of weatlh isn't the same as running Paisley Park. I think you'd probably agree with that.

Earlier, you answered someone asking about who's running Paisley Park. You said the beneficiaries. That's just not true. They could get a payout based on the estate's value, which is what the article leans toward, rather than a controlling interest in Paisley Park or the vault contents. I mean, no one is going to annex off Paisley Park's interests like that. And since it's not a public corporation, there's no stocks to be given out, either.

Let's face it, these people probably want the money. None of them worked for it, but all of them want it.

TrivialPursuit said:

ISaidLifeIsJustAGame said:

lmfao, I never said the siblings were going to march into Paisley Park.

My proof is in the filed Court documents which I read instead of getting my information from a Star Tribune article.

By the way, in case you haven't heard, the beneficiaries of the Estate include more than the just siblings.

I think it's sorta apples and onions here.

Let me be more clear: Distribution of weatlh isn't the same as running Paisley Park. I think you'd probably agree with that.

Earlier, you answered someone asking about who's running Paisley Park. You said the beneficiaries. That's just not true. They could get a payout based on the estate's value, which is what the article leans toward, rather than a controlling interest in Paisley Park or the vault contents. I mean, no one is going to annex off Paisley Park's interests like that. And since it's not a public corporation, there's no stocks to be given out, either.

Let's face it, these people probably want the money. None of them worked for it, but all of them want it.

lmfao, still not true as to what I said.

DonRants said:

This is why everyone should write a will. If you are reading this and haven't written your will, what are you waiting for?

The will would only have decided who inherits what. There would still have been probate required while the tax for the estate was decided. Back in May '17, the heirs were decided. https://www.jamaicaobserv...-siblings.

A will wouldn't have changed the amount of time to value the estate and get the taxes paid.

soladeo1 said:

Seems a bit low. Especially given his estate’s posthumous yearly earnings which are considerable.

I agree. Back in 2016, it was estimated to be more than US$300 million. Strange how it got halved in almost 6 years.

TheEnglishGent said:

DonRants said:

This is why everyone should write a will. If you are reading this and haven't written your will, what are you waiting for?

The will would only have decided who inherits what. There would still have been probate required while the tax for the estate was decided. Back in May '17, the heirs were decided. https://www.jamaicaobserv...-siblings.

A will wouldn't have changed the amount of time to value the estate and get the taxes paid.

A will would/could have still outlined more than what you're saying.

There could have been money set aside for Mayte or Mani. There could have been an outline of how he wanted his Vault to be handled. There could have been wishes for the care of Paisley Park. There could have also been advance directives on how he wanted to be buried/cremated/etc.

Without a will, only be default did the siblings get appointed as heirs as there were no other immediate (wife, children, parents) to give it to.

Se7en said:

TheEnglishGent said:

The will would only have decided who inherits what. There would still have been probate required while the tax for the estate was decided. Back in May '17, the heirs were decided. https://www.jamaicaobserv...-siblings.

A will wouldn't have changed the amount of time to value the estate and get the taxes paid.

A will would/could have still outlined more than what you're saying.

There could have been money set aside for Mayte or Mani. There could have been an outline of how he wanted his Vault to be handled. There could have been wishes for the care of Paisley Park. There could have also been advance directives on how he wanted to be buried/cremated/etc.

Without a will, only be default did the siblings get appointed as heirs as there were no other immediate (wife, children, parents) to give it to.

Yes but there wasn't. The point is, even if the will had just said the siblings get everything, we'd still be in pretty much the same situation now. There would still need to be the probate process and estate tax to paid. Some people act like if there was a will, everything would have been smooth sailing and a month after Prince died, everything would have been sorted. That's just not how it works. When my parents died a month apart, it took nearly six months to get everything sorted and they had a will and the only real asset they had was a house. Six months for the most basic of estates to be sorted.

Se7en said:

TheEnglishGent said:

The will would only have decided who inherits what. There would still have been probate required while the tax for the estate was decided. Back in May '17, the heirs were decided. https://www.jamaicaobserv...-siblings.

A will wouldn't have changed the amount of time to value the estate and get the taxes paid.

A will would/could have still outlined more than what you're saying.

There could have been money set aside for Mayte or Mani. There could have been an outline of how he wanted his Vault to be handled. There could have been wishes for the care of Paisley Park. There could have also been advance directives on how he wanted to be buried/cremated/etc.

Without a will, only be default did the siblings get appointed as heirs as there were no other immediate (wife, children, parents) to give it to.

There could have been and there is a very good possiblity that he put some $$ in a trust for certain people. And that wouldn't be made public.

TrivialPursuit said:

ISaidLifeIsJustAGame said:

lmfao, I never said the siblings were going to march into Paisley Park.

My proof is in the filed Court documents which I read instead of getting my information from a Star Tribune article.

By the way, in case you haven't heard, the beneficiaries of the Estate include more than the just siblings.

I think it's sorta apples and onions here.

Let me be more clear: Distribution of weatlh isn't the same as running Paisley Park. I think you'd probably agree with that.

Earlier, you answered someone asking about who's running Paisley Park. You said the beneficiaries. That's just not true. They could get a payout based on the estate's value, which is what the article leans toward, rather than a controlling interest in Paisley Park or the vault contents. I mean, no one is going to annex off Paisley Park's interests like that. And since it's not a public corporation, there's no stocks to be given out, either.

Let's face it, these people probably want the money. None of them worked for it, but all of them want it.

PennyPurple said:

There could have been and there is a very good possiblity that he put some $$ in a trust for certain people. And that wouldn't be made public.

Definitely not unreasonable, but we probably would've heard about that when all his assets were listed. Or maybe not, who knows.

PennyPurple said:

Se7en said:

A will would/could have still outlined more than what you're saying.

There could have been money set aside for Mayte or Mani. There could have been an outline of how he wanted his Vault to be handled. There could have been wishes for the care of Paisley Park. There could have also been advance directives on how he wanted to be buried/cremated/etc.

Without a will, only be default did the siblings get appointed as heirs as there were no other immediate (wife, children, parents) to give it to.

There could have been and there is a very good possiblity that he put some $$ in a trust for certain people. And that wouldn't be made public.

Correct.

TheEnglishGent said:

Yes but there wasn't. The point is, even if the will had just said the siblings get everything, we'd still be in pretty much the same situation now. There would still need to be the probate process and estate tax to paid. Some people act like if there was a will, everything would have been smooth sailing and a month after Prince died, everything would have been sorted. That's just not how it works. When my parents died a month apart, it took nearly six months to get everything sorted and they had a will and the only real asset they had was a house. Six months for the most basic of estates to be sorted.

Agreed.

soladeo1 said:

Seems a bit low. Especially given his estate’s posthumous yearly earnings which are considerable.

The taxes for the posthumous earnings were paid during the year of the releases. The value is solely on the estate at the time of death. Tax filings have been paid from 2016 on. Even some prior years have been amended.

If I recall, the estate has been paying installments to the taxing authorities over time. That explains the distributions in February. The estate must pay all debts, including debtors prior to distribution.

It is good the penalties were removed, that is $6.4 million saved (plus the state amount).

Again, there is a federal exemption of $11.7 million, so anything over that is taxed at 18 - 40% (2021). For 2022 the amount wll be raised to $12.06 million.

Minnessota has an estate exemption of $3 million, and a taxable rate of 13 - 16%.

The heirs will not pay taxes on the inheritance they receive, whether it is cash, property or investments. However, any subsequent earnings on the inherited assets are taxable unless it comes from a tax-free source. Tax-free sources can include life insurance payments and municipality bond interest to name a couple.

There is a difference between an inheritance tax and estate tax. The estate is taxed at the value of assets at the time of death, less the exemption amount.

Currently in the US, there is not an inheritance tax on the federal level. Inheritance tax is when the beneficiary is taxed for the distribution of assets received. There are only 6 states that have an inheritance tax, and Minnessota is not one of them.

DonRants said:

Se7en said: