Ohio fans of the musician Prince may be interested in the news that his estate has been valued at $200 million although that is still not a final figure. There are further appraisals ahead. Prince did not leave a will, and as a result, his estate will be divided between five half-siblings and his sister. However, reports say that about half of the estate will go to taxes.
Attorneys did not name the actual $200 million figure, but the Associated Press calculated it based on an estimated value of $90,000 per month. It is possible that the figure named is a low one in an effort to keep taxes lower. Tax filings can get a six-month extension following their Jan. 21 deadline, but it is possible to spread out the tax payments over a decade.
"Forbes" ranked Prince's estate as the fifth highest-earning estate belonging to a deceased celebrity. Also on the list was David Bowie, Elvis Presley, and Michael Jackson.
Failing to create a will or any kind of estate plan can lead to a number of issues. As with Prince's estate, it may be tied up in probate, and there might be a high tax burden. Had Prince made an estate plan, he might have decided to divide his assets differently rather than between his siblings, and he might have used a trust and other estate planning tools to help reduce taxes. A person does not have to be very wealthy for their beneficiaries to benefit from an estate plan. A will can designate who will receive which assets, including sentimental items, and a trust may be one way to manage money for a beneficiary who is irresponsible or incapacitated.