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Prince’s recent passing has led many to contemplate his extraordinary music and enigmatic persona. Like numerous great artists who came before him, Prince challenged conventions both in his life and music, producing work that was revolutionary for its time.
He also embodied the essence of the American Dream. Growing up with little beyond his exceptional musical talent, he utilized his unique skills to accumulate an estimated $300 million estate. His life ended abruptly and far too early, leaving no children and no will.
by Colin Smith | Contributor
A colleague of mine remarked, “If you want to see a multimillion dollar estate vanish, just watch this case.” I completely concur, but I would also add: “Or if you want to witness a family irreparably harmed and fractured.” As of this writing, the family is preparing for probate court in Minnesota, and according to recent news updates, they’re already in conflict over the estate. “I Hate U” indeed. How does one fairly divide such an incredible collection of guitars? What about the rights to his music? Did he intend for his family to inherit everything? And what of all his reportedly unreleased material? I suspect Prince wasn’t pondering these issues when he penned “Controversy.”
If there was no estate planning implemented, the IRS stands to collect roughly 40% of the estate, which translates to about $120 million. Astonishing. That amount could easily fund a “Little Red Corvette” for every member of Congress. I doubt this is what the remarkable artist envisioned.
While the exact number is uncertain, estimates suggest that around 55% of American adults lack a will or any form of estate plan. Most people would reasonably contend that their estates won’t approach the value of Prince’s, and they’re right.
Reasons for Having an Estate Plan
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Estate planning isn’t solely about handing down wealth and property or minimizing taxes. Most of us have family. Any legal disputes over our estates can irreparably harm relationships. This is an unfortunate consequence of legal battles, and I have yet to meet a client who wanted to spark discord among family members. A well-crafted estate plan articulates our financial and personal desires to those we leave behind, regardless of the wealth we may have to distribute.
- Estate planning can protect individuals from themselves and others. For example, if a 20-year-old inherits a multimillion-dollar fortune, you can bet that retail outlets and car dealerships will see a temporary surge in sales as that beneficiary spends money in a “Let’s Go Crazy” or “Partyman” fashion. More often than not, the deceased would have preferred that the beneficiary invest in education, a home, and save for the future. Trusts can help achieve those goals.
Investing time into building a family, fostering relationships, and establishing an estate deserves a few hours of a lawyer’s dedication to ensure everything remains aligned with our wishes.
For further details or to arrange a discreet legal consultation, reach out to Colin Smith at colinsmithlaw.com or 972.773.9095.
