Unlike other celebrities like Michael Jackson, the estate assets for pop star Prince were all valued accurately and the necessary taxes were paid and there were not any further audits from the IRS.
However, Prince made things much more difficult for his loved ones by failing to leave behind a will. There was no clear heir when Prince passed away, which means more than 45 individuals stepped forward claiming to be potential heirs.
These included nieces, supposed children, half-siblings and siblings. This cost the estate a great deal of money in legal fees as the executors tried to investigate each one. A lack of a capable and committed executor is another mistake made in the management of Prince’s estate.
When there have been many different administrators and poor management, asset value can decrease. When you don’t have a traditional offspring or heir, there are many options available including charities, nieces and nephews.
The key is to tell these people while you are still alive about your goals and intentions, and enabling them to ask questions. Many estates have to sell assets in last-minute sales to pay the necessary estate tax. Make sure that you have plenty of liquid assets prepared to pay the estate tax, if you are over the exemption amount. Scheduling a consultation with a knowledgeable estate planning attorney is one way to do this.