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Jacob Maslow is a leading financial writer and accomplished author with bylines at business.com, huffingtonpost.com, patch.com, streetwisejournal.com and dozens of other leading publications. The native New Yorker brings his passion for the financial world to the forefront of every article with ...more

Prince’s Estate Worth $200 Million, Court Filings Say

Date: Wednesday, December 7, 2016 11:28 AM EDT

The iconic music legend Prince left behind an estate worth about $200 million, according to recent court filings. An AP report says the filings were the first to show a specific estimate of the musician’s estate value since his death.

Prince had no known will at the time of his death. His sister and five half-siblings are expected to inherit equal shares of the estate after taxes.

Officials began the arduous process of appraising Prince’s catalog of unreleased music, recording studio in Paisley Park and other assets shortly after his death. Bremer Trust, the company overseeing the estate, estimated the estate to be valued between $100 million and $300 million.

In new court filings, Bremer Trust puts the estate’s value at around $200 million.

Donald David, an entertainment attorney, told People in April 2016 that he believed the estate could generate at least $100 million over the next five years. David estimated the estate to be worth $250 million at the time.

The star is also believed to have several unreleased recordings in an archive known as the Vault. Unreleased music could serve as potential income for the estate in the future. Prince’s current music album can also generate income for years to come. Royalties for songs written for other artists will also continue to generate income for the estate.

AP’s reported $200 million figure is derived from a memo that states the company’s fee is $90,000 per month, or $1.08 million per year. The firm’s fee schedule is based on estate’s value: 0.5% for assets exceeding $10 million. Based on the annual fee, AP calculated that the estate is worth around $200 million.

Other law experts not connected to the case agree with AP’s figure.

“In cases where high net worth individuals fail to create a will, it can take quite some time to calculate the true value of the estate,” said a spokesperson for John A. Knutson & Co., an accounting firm that specializes in estate planning. “That time winds up costing the estate a significant sum in most cases, so it really pays to have your estate planning in order.”

Bremer Trust has not commented on the matter.

Prince’s estate has until January 21 to pay state and federal estate tax returns, which are estimated to total about half the estate’s value.

Experts say that if Prince’s estate is well-managed, it may continue generating income for several decades. 

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