It's no secret that the estate of late singer, songwriter, and multi-instrumentalist Prince is extremely valuable. But exactly what was the precise value of everything held by the estate had, until very recently, been a matter of dispute.
Prince died of a fentanyl overdose in April of 2016. He was only 57 years old. Shortly after his death, his estate's administrator, Comerica Bank & Trust, informed the IRS that the total value of Prince's estate was $82 million, a figure that sparked disagreement with the IRS.
In a legal battle between the IRS and Comerica Bank, we gained a clearer understanding of the assets owned by Prince at the time of his passing and the contentious values placed on them. Below is a detailed breakdown of some of the most significant assets and their estimated values:
- NPG Publishing – The entity that holds his songwriting copyrights. Comerica valued NPG at $21 million, while the IRS assessed it at $37 million.
- Writer's Share of the songwriting catalog – Valued by Comerica at $11 million, the IRS placed its value at $22 million.
- NPG Records – Prince's record label. Comerica estimated its worth at $19.4 million, compared to the IRS's $46.5 million valuation.
- Paisley Park – A 149-acre largely undeveloped property in Chanhassen, Minnesota. Comerica valued it at $11 million, while the IRS estimated its worth at $15 million.
In January 2021, the IRS argued that Prince's estate was significantly undervalued. Their calculations suggested that the estate's true worth was closer to $163.2 million.
Six months later, the IRS issued a notice of delinquency to the estate, demanding an additional $32.4 million in federal taxes related to the 2016 tax year, along with a $6.4 million "accuracy-related penalty." In light of this dispute, Comerica and Prince's estate sought a trial.
Recently, the two parties reached an agreement. They settled on a figure stating that Prince's estate was valued at $156.4 million at the time of his death. As part of the settlement, the IRS agreed to waive the $6.4 million penalty.
Who Inherited Prince's Estate?
When Prince passed away, he did not leave behind a will. As a result, his estate was divided among his siblings. Tragically, two of those siblings died between Prince's death and the IRS settlement, leaving three siblings as the sole inheritors of the estate.
This situation highlights the importance of having a will, especially for individuals with significant assets. Without a clearly defined plan, the distribution of wealth can become complicated and contentious.
In summary, the legal proceedings surrounding Prince's estate not only shed light on the immense value of his assets but also underscore the necessity of proper estate planning. Having a will can prevent misunderstandings and ensure that one's wishes are honored after passing.
