The world was stunned when it learned that Prince never created an estate plan, or even a will, to distribute and protect his assets after his passing.
For someone who was apparently so anti-establishment, it seems unlikely that Prince would have wanted the U.S. government to receive a windfall. Yet that will be the likely result of his failure to do any estate planning.
Prince’s lack of planning could cost his estate up to half of its estimated $300 million worth.
If Prince had established an estate plan that incorporated common tax planning strategies, a much greater portion of his wealth and future income would have passed to his intended beneficiaries. Tax and estate planning strategies could have substantially lowered his estate’s tax bill, and even protected his future earnings.
For high net-worth individuals, such as Prince, it is never too early to discuss comprehensive tax and estate planning.
Reference: Prince Estate: The Importance Of Having A Will, by Gary Borofsky, Forbes Magazine, July 18, 2016.