4 Lessons we can learn from Prince’s death

Prince, the legendary and iconic African American singer, musician, song writer and actor died on 21 April 2016. He died without making a Will according to court documents filed by his sister Tyka Nelson.

Prince’s net worth is estimated at $150 to $300 million. This figure does not take into account the singers post death earnings which are likely to arise from his music catalogue, royalties, licensing of his image etc.

While the death of Prince continues to reverberate around the world, his lack of estate planning – even down to making a simple Will – has left many in shock.

Below, we take a look at 4 lessons we can learn from Prince’s death on why it is important to make a Will and to receive estate planning advice.

1. Making a Will reduces the chances of claims being made against the estate. Prince’s estate has already been hit with a paternity claim. “Carlin Q. Williams” claims he is Prince’s son having been conceived 9 months after his mother had a brief tryst with the singer in July of 1976. A DNA test will come next, based on blood samples already preserved from Prince’s body.

By making a Will, you clearly set out whom you wish to benefit from your estate. Your choice of beneficiaries is clearly identified. Without a Will, the chances of ‘family members’ fighting over the estate increase dramatically.

2. Making a Will allows you to choose your beneficiaries. In the absence of a Will, Prince’s estate will be distributed under the rules of intestacy. Intestacy means the deceased died without a Will. In essence, the government – or the state of Minnesota in Prince’s case – will determine Prince’s beneficiaries following a strict order under statute.

Prince was divorced, had no living children and had survived his parents. Therefore, his siblings (1 sister and 5 half siblings) are set to inherit Prince’s estate in addition to receiving his post death earnings under Minnesota state law.

It was well known that Prince generously gave to charity. It follows, that he would have wanted the same after his death. Many people wish to leave their estate to persons who fall outside of the rules of intestacy ie more distant family members, friends or other organisations such as charities. It is not possible to give effect to these wishes without making a Will.

3. Making a Will allows you to appoint executors. Executors deal with the administration of the estate and can be lay people (usually family members) or professionals. In the absence of a Will and subsequently no named executor, the Probate Court will appoint an administrator. Administering an estate, particularly a high net worth estate as in Prince’s case, without a Will is more time consuming and expensive than administering an estate with a Will. Given the size and breadth of Prince’s estate and his brand, the fees for administering Prince’s estate are likely to be considerable.

4. Having your Will professionally drawn up allows you to receive tax advice. Taxes represent the biggest liability of Prince’s estate. American taxes (federal tax and state tax) could temper out at a whopping 50%! Estate planning suggestions, as well as tax-savings strategies, could have helped Prince to reduce or eliminate his tax liabilities over time.

By having your Will professionally prepared, you can receive advice on the options available to you for reducing any potential tax liabilities your estate faces or eliminate them entirely.

So what does this mean for you? It’s simple. While many people do not have an estate the same size as Prince’s, they still need to make a Will and receive estate planning advice.

Wills are relatively straightforward to create with the right advice and guidance. So for a couple of hundred pounds, you can avoid your family falling out and your estate having to pay large sums in legal fees because of expensive court battles.

For help making your Will or to receive estate planning advice, please contact us on 0208 537 3448 or send an email to  wills@ashtongrace.co.uk