After years of legal battles and “who gets what” family drama following the unfortunate 2016 death of pop icon Prince, his estate has finally been settled and officially given a multimillion-dollar value to be split between publishing company Primary Wave and his surviving heirs.
As reported recently by the Minneapolis Star-Tribune, the Internal Revenue Service has come to an agreement with Comerica Bank & Trust, the estate’s administrator, to value Prince’s legacy at a whopping $156.4 million. The legendary singer, who died in April 2016 due to an overdose of the very fatal opioid fentanyl, didn’t set up a will before his untimely passing. The past six years have seen lawyers and consultants racking up tens of millions in order to properly administer what is owed to Prince’s six sibling heirs. Two have since died, and two others are in their 80s and possibly approaching their final years.
More on how Prince’s estate will be divided up below, via Minneapolis Star-Tribune:
“In the end, the estate will be almost evenly divided between a well-funded New York music company — Primary Wave — and the three oldest of the music icon’s six heirs or their families.
The IRS and Comerica settled last spring on the real-estate portion of Prince’s estate. But the trickier task of valuing intangible assets such as rights to Prince’s music was not completed until October.
The value of that settlement — $156.4 million — was disclosed Friday in a filing in Carver County probate court.
As part of the agreement, the IRS dropped a $6.4 million “accuracy-related penalty” it had levied on Prince’s estate. The Minnesota Department of Revenue, which agreed on the estate’s valuation, also has jettisoned an accuracy penalty, the filing said.
Tax collectors will take a bite out of Prince’s fortune that will run into the tens of millions of dollars.
A bit more than $5 million of Prince’s estate will be exempted from taxes under federal law, but thereafter the tax rate is 40%. In Minnesota, the first $3 million is tax-exempt; after that, much of Prince’s estate will likely be taxed at 16 %.”
With the musical legacy that Prince established over the span of four decades, many might be surprised that his estate valuation wasn’t in the vain of fellow legendary acts like Bruce Springsteen, rumored at $550 million, or the late David Bowie, which sources recently put at upwards of $250 million. Given that selling music rights didn’t become as big of a cash grab until recently, the estate of Prince is being valued based off the time of his death back in 2016.
However it gets divided up in the end, let’s just hope those in charge of future projects involving The Purple One do it with respect to what he stood for and the soul he put into each one of his timeless hits. Here’s one of our favorites:
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Prince’s Estate Has Finally Been Settled, Given A Valuation Of $156.4 Million was originally published on blackamericaweb.com