When Prince died in 2016, he did not have a will. This can be a complicated situation for the family of a regular middle class person. It is a mess of unprecedented proportions when it happens to someone with the prince’s vast wealth. After nearly five years in probate, the Internal Revenue Service has taken the call, claiming that the late music legend owed taxes because his assets were valued at about 50%, or about $ 80 million, by the executors.
The IRS has determined that Prince Rogers Nelson does not own $ 82.3 million in assets that Comerica Bank & Trust, the administrator of the property, determined. Instead, the IRS believes Prince’s assets were close to $ 163.2 million at the time of his death. That leaves his assets on the hook for $ 32.4 million and $ 6.4 million in taxes. For what it’s worth, celebrity net worth placed her net assets in the range of $ 200 million to $ 300 million at the time of her death. We still feel comfortable with that limitation because the value of Prince’s catalog has not really been fully realized yet and it is likely that millions … perhaps tens of millions … have been raised over the past several years to wish Expenses have been incurred in completing and paying taxes.
The IRS is just the latest issue Prince’s heirs have to deal with in a nearly five-year battle over their wealth, assets and unrestricted music vault. In April 2016, Prince died accidentally at 57 from accidental overdose. We will never know why or how he got fake Visodin with the deadly opioid fentanyl. Synthetic opioid is 50 times stronger than heroin. The Prince was reportedly looking for the plain old Vicodin who was not trying to kill himself. No one was charged with a crime in connection with his death because it could not be determined who gave or sold those pills to Prince.
Prince retained ownership of most of his works, including his music publishing rights, but as previously stated, there was no final will and testament. This has made Prince’s probate court process one of the most complex in Minnesota history.
The discrepancy in value between Prince’s assets and the IRS’s valuation comes down to what each entity believes Prince has musical rights to. The estate valued Prince’s songwriting copyright at $ 21.2 million. The IRS believes that those copyrights are valued at $ 36.9 million. The estate placed the “author’s share” of the lyrical copyright at $ 11 million. The IRS believes it is valued at $ 22 million. The estate valued Prince’s record label, NPG Records, at $ 19.4 million. The IRS says it is valued at $ 46.5 million.
The estate and the IRS also disagree on the value of Prince’s real estate holdings, including 149 acres of undeveloped land in Channehsen, a suburb of Minneapolis where his Paisley Park is located. An independent appraiser valued it at $ 11 million. The IRS states that the fair market value of the land is actually $ 15 million.
This tax dispute is the latest twist in Prince’s estate investigation. There are many problems that have resulted in payments to millions of lawyers and delayed payments to the six family members who succeeded Prince. Comerica, the executor of the prince’s estate, sued the IRS this summer, saying his calculations were incorrect. The bank is asking the tax court to sue in St. Paul, Minnesota. A trial would further delay the disposal of his property and create more legal fees, reducing the amount his heirs would receive. The Prince’s heirs are his sister Tyka Nelson, his half-sisters Noraine and Sharon Nelson, and his half-brothers John Nelson, Alfred Jackson and Omar Baker. Alfred Jackson died in 2019.
The most obvious lesson from the tragedy of Prince’s death is clear: If you die without a will you will leave chaos and confusion behind. Nearly six years after his death, his vast wealth is still not settled, yet has no official value, and is still not distributed among his five heirs. Instead, lawyers’ teams have been working on it for more than four years, paying huge legal fees, filing heaps of documents with the probate court, and still owning their property once and for all Has not made much progress in settling for.