Another Classic Lesson from Prince
Create “T H E P L A N.” You might hear it all the time. Particularly from experts. And, it’s more and more important as you get older. What am I referring to? Make sure you have properly written instruments about what you want to be done with your worldly possessions after you pass away. And you don’t have to look far to see what might happen if you don’t.
It was recently announced that the estate of the music phenomenon Prince agreed, after a six-year court battle with the IRS and the Minnesota Revenue Department regarding the value of his estate, ending this “C O N T R O V E R S E R Y.” And that will finally allow his closest relatives to finally receive some payments/benefits of the estate.
When Prince died, he didn’t have a will. He didn’t have a trust. There was no written documentation about what to do with his assets. This is complicated on two fronts. Number one, who gets various things, money, future music rights, etc.---and how much? The first battle was amongst relatives, former girlfriends, some people nobody’s ever heard of, all fighting for a portion of his estate. The second issue was how much he would have to pay in estate taxes, both at the federal and state level.
It only took six years. Seems like this issue has been around since “1 9 9 9.” It only took thousands of hours of court time, mediation, etc. And I can’t even guess how much in lawyers’ fees.
The result? Two of the direct beneficiaries, relatives close enough to be included in the estate plans, have passed away. They never realized anything. And because there wasn’t good estate planning, nearly 50 some percent of his entire state will go to taxes, both at the federal and state level. Makes you saw “W O W.” He didn’t protect his interests it in the right way and now the estate will hand the government tens of millions of dollars when they were other alternatives. It just makes you think “W H A T I F?”
This might seem extreme to you. It might seem not connected to you. Take the lesson. Have an estate plan. Talk about it with experts. Let your loved ones know what’s in those plans. Consider how it affects others, particularly those beneficiaries. And, if you have a dollar or two extra, think about nonprofits that would benefit from your largess and there’s also a likelihood that it wouldn’t affect your primary family beneficiaries. I truly believe, if you could if you asked Prince now about would he have like to create a plan, he almost undoubtedly would’ve said “Y E S.”
Remember, use this story as to make sure you are prepared…because you might be thinking “I T C O U L D B E U S.”
