Heirs of Prince’s Estate Valued at $156.4 Million are Decided!
After nearly six years of extensive analyses, parties affiliated with Prince’s estate have finally agreed on a value: $156.4 million, according to the Minneapolis Star-Tribune and the Associated Press. Comerica Bank & Trust, the estate’s outgoing administrator, valued it at $82.3 million, infuriating several parties, including the late artist’s heirs, who died in 2016 without leaving a will.
The Internal Revenue Service valued it at $163.2 million last year, significantly closer to the final figure. According to the article, the process of dividing Prince’s riches may begin as soon as next month if Comerica and the IRS reach an agreement and the heirs give their approval.
Despite the fact that the new figure pales in comparison to the value of Bruce Springsteen‘s publishing and recorded-music catalogs (approximately $550 million, according to sources) or Bob Dylan‘s or David Bowie‘s publishing alone (nearly $400 million and upwards of $250 million, respectively), the legal battle has cost tens of millions of dollars, and the heirs were eager to settle, according to the filing.
“It’s been a long six years,” L. Londell McMillan, an attorney for three of Prince’s siblings, said at a hearing in Carver County District Court on Friday, referring to the estate’s long, difficult, and expensive settlement process, which is estimated to have cost tens of millions of dollars.
Six of Prince’s siblings or half-siblings have been identified as heirs; the estate is owned by Primary Wave Music and Prince’s three oldest siblings; the inheritance will be divided approximately evenly amongst those businesses. Prince’s three younger siblings, one of whom has died, had all or most of their stakes bought out by Primary Wave. Last year, the three older siblings gave McMillan, a prominent Hollywood attorney, and musician-producer Charles Spicer, who has represented them in estate procedures, an undisclosed amount of their interest.
ACCORDING TO THE REPORT, the IRS and Comerica reached an agreement on the estate’s real-estate assets last spring, but assessing things like Prince’s music rights was significantly more difficult and took until October. The IRS waived a $6.4 million “accuracy-related penalty” imposed on the estate as part of the arrangement, and the Minnesota Department of Revenue also dropped its accuracy penalty.
According to the article, the estate will be taxed to the tune of tens of millions of dollars. Under federal law, a little more than $5 million of the estate would be tax-free, but the rest will be subject to a 40% tax rate. The first $3 million of Prince’s estate is tax-free in Minnesota; after that, much of his fortune will most certainly be taxed at a rate of 16 percent.
Comerica sued the IRS in U.S. Tax Court in mid-2020, alleging that the agency’s estimations of the estate’s value were riddled with mistakes, but the trial was canceled due to the settlement.
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