There's Bad Tax News for Prince's Heirs

Taxes could cut the value of his estate in half
By Evann Gastaldo,  Newser Staff
Posted Jun 8, 2016 2:08 PM CDT
There's Bad Tax News for Prince's Heirs
In this May 19, 2013 file photo, Prince performs at the Billboard Music Awards at the MGM Grand Garden Arena in Las Vegas.   (Photo by Chris Pizzello/Invision/AP, File)

Rumors of Prince's money troubles continue: Lawyers involved in the probate battle over the musician's estate say taxes due to the state and the IRS could slash the worth of his estate in half, NBC News reports. Experts have estimated the cash value of Prince's estate at $300 million, but if he died without that much money on hand, things will have to get sold in order to pay the taxes that are due by Jan. 21. The Minneapolis Star Tribune notes that the case underscores "the complexity and pressures involved in a fortune built mainly on intangible intellectual property."

What could end up getting sold off? Any unreleased songs in Prince's vault, rights to his music and his image, digital streaming revenue, and possibly his home, guitars, and other tangible items. The lawyers for the company overseeing Prince's estate urged a judge Tuesday to make quick decisions in the fight over who is the rightful heir (nine people, including several relatives and this guy, have filed formal claims), because if the tax deadline is missed, the government "will have a fire sale, and that is not in the best interests of anyone." Prince apparently died without a will. (More Prince stories.)

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