Image Credit: Kristian Dowling / Getty Images file
The Pop Stars Untimely Death Created A Complicated Probate Court Proceedings That Are Ongoing Today.
When Prince died back in 2016 it was a shock for his fans and family. The latter of which would be thrown into a massive court battle as he died without signing a will. This left huge levels of uncertainty and thus a large and complicated series of court hearings ensued, of which is still happening today. Recently Internal Revenue Service calculations showed that executors of the star’s estate undervalued it by 50 percent, or around $80 million.
The IRS determined that Prince’s estate is worth $163.2 million, overshadowing the $82.3 million valuation submitted by Comerica Bank & Trust, the estates administrator. According to court documents the main discrepancy primarily involves Prince’s music publishing and recording interests. Which is very interesting the value has doubled now as companies such as Hipgnosis are snapping up publishing rights.
Documents from the IRS shows that they believe Prince’s estate owes $32.4 million in federal taxes, roughly doubling the tax bill based on Comerica’s valuation. The IRS has also ordered $6.4 million “accuracy-related penalty” on his estate, citing “substantial” undervaluation of assets.
Prince’s tragic death (Fentanyl overdose) in April 21st, 2016, has created one of the largest and most complicated probate court proceedings in American history. The estimates of his net worth have varied widely, ranging from $100 million to $300 million.
With this case dragging on the six sibling heirs have understandably grown increasingly unhappy, especially as the estate has spent tens of millions of dollars to lawyers and consultants.
Comerica and their lawyers at Fredrikson & Byron in Minneapolis maintain their estate valuations are solid. Comerica sued the IRS this summer in U.S Tac Court in Washington D.C., saying the agency’s calculations are riddled with errors.
This story is continuing to develop and will be updated as the court proceedings continue.