Thanks to Estate Taxes, The Government Will Take Over 50% of Prince's Estate

Prince Rogers NelsonJune 7, 1958 - April 21, 2016 (age 57)

by Brittany Hunter: With tax season still fresh in the minds of the American public, many might agree that the citizens of our country are being taxed excessively. Though income tax season is an easy target for those looking to disparage the IRS, there are several instances of taxation that Americans must deal with aside from payroll and income taxes. In terms excessive taxation, perhaps nothing brings this sentiment to life quite like the debacle surrounding the estate of the late entertainer, Prince.

Almost two weeks ago, the legendary performer, Prince, was found dead in his home in Minneapolis, Minnesota. As the world mourned the passing of a great performer, attention was drawn towards his will, or lack thereof. Having accumulated a massive amount of wealth from decades spent in the entertainment industry, it appears that Prince never bothered to write a will. As a result, the future of his estate is in question.

Single at the time of his passing, Prince was twice divorced and without any children. Though he has one biological sibling and one half-sibling, without a will, there is no clear executer of his estate. However, though it is unclear who will inherit his wealth, the government stands to gain the most from the late singer's estate.

Currently, Prince's estate is estimated to be somewhere between $150 million and $300 million. According to Forbes, in the last 14 years of Prince's life alone, he earned over $270 million dollars, which leaves many to speculate that his estate's total value will be closer to $300 million.

Thanks to the federal estate tax, 40 percent of Prince's entire estate will go to the federal government. In addition to the federal government's cut of Prince's enormous wealth, the state of Minnesota will take an additional 16 percent, excluding deductions.

Martin Neumann, a partner and estate planner at the law firm Weinstock Manion, told Buzzfeed News:"Combination of those two taxes is going to take away about half of the total estate. If they are estimating that he has a $300 million estate, roughly $150 million [of] that goes away in taxes. The estate or his siblings are going to be partners with the IRS and Minnesota to the tune of 50 cents on the dollar."Had Prince had the forethought to do some in-depth financial planning or even draft a will, a considerable amount of money could have been spared from falling into the government's grasps.

However, at the end of the day, even with federal and state deductions available to whoever is deemed the executor of his will, the government of Minnesota and the federal government will end up taking over half of the singer's entire estate.
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Brittany Hunter is a Staff Contributor at Generation Opportunity who shared this article with the ARRA News Service.

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