After music legend Prince’s untimely death on April 21, 2016, the estate planning world was shocked to learn that he hadn’t created an estate plan. The months following his death saw claimants and potential heirs clamoring for a piece of his estate, valued at approximately $250 million.
Unfortunately, nearly two years later, the rock icon’s estate still has not been settled. According to TMZ, some heirs are now questioning whether there will be any assets left to distribute when the dust settles. The concern is two-fold.
First, the estate is being professionally managed and administered by Comerica, who is reportedly earning management fees to the tune of $125,000 per month. The second concern is that legal fees are also steep; the Minneapolis law firm Fredrikson & Byron, P.A. has been handling a variety of legal matters for the estate, including providing representation in legal matters, providing advice on tax matters, coordinating and supervising accountants, outsourcing legal representation to handle overseas litigation, trademark matters, and more. TMZ reported that fees billed in January alone reportedly totaled $440,000. With those types of monthly costs, it’s not hard to understand the heirs’ concerns.
Most of us will never have the size or type of estate concerns rock stars need to deal with. However, Prince’s estate is a glaring example of why it’s so important to engage in some pre-planning. By creating a Will and/or a Trust (depending on your situation and your goals), it is possible to streamline the way your own estate will be handled when you die. You have control over nominating a person or trusted professional fiduciary to handle things, and you can control to whom – and how – estate assets should pass. Through thoughtful estate planning, it is also possible to minimize tax implications to your estate.
Secure a financially sound future for you and your loved ones by partnering with us. At our firm, you can be sure that your satisfaction will always be our first priority. We will be your trusted advisor at every step of the process. Our services are available at competitive prices and do not involve any hidden costs. We are here to guide you through the difficult decisions that will protect your family after your passing. Contact us today to get started!