Taxman cometh: Government set to collect half of Prince's estate

Celebrity

Taxman cometh: Government set to collect half of Prince’s estate

Prince’s estate has until Saturday to file an estate tax payment for the late rock superstar. The taxes are expected to ultimately swallow nearly half the estate’s estimated $200 million value — meaning a likely windfall of roughly $100 million for the government. Prince’s estate is subject to a federal tax of 40 percent and Minnesota’s tax of 16 percent. With exclusions and deductions, the total bite will be closer to 50 percent. The estate can seek an extension for filing the return but can’t delay the first payment.

[People] think they have to be as rich as Prince before they need estate plans. If your net worth is a couple hundred thousand dollars, you need some kind of estate plan.

Jeffrey Scott, a St. Paul, Minn., attorney

Prince left no known will when he died in April of an accidental painkiller overdose, and apparently did nothing to shelter his assets from the taxman. Experts say Prince could have set up an estate plan with trusts to benefit any relatives and charities he chose — while leaving little if anything to be taxed. Prince’s six siblings are expected to split what’s left after the government payout.

There’s family and friends, there’s charity, and there’s Uncle Sam. And most clients would rather that Uncle Sam got less.

Robert Strauss of L.A. estate law firm Weinstock Manion