Have you ever wondered the answer to the question, how much will your family really inherit when you pass away? Prince’s failure to conduct estate planning has landed his estate in the news numerous times and it turns out that the federal government is entitled to as much as 40% of Prince’s estate. Furthermore, the state of Minnesota might be entitled to up to 16%.
Would you prefer that your money go to friends, family members and charities instead of estate taxes being paid to the government? Prince’s case is a perfect example of what not to do and how much of your estate the government can claim if you don’t carry out your own planning.
When Prince originally passed away in 2016, his estate was estimated at around $200 million and he had not taken any steps to protect that from the taxes due to the IRS or Minnesota’s Department of Revenue. Legal fees and costs associated with the years-long battle of fighting out who is entitled to recover benefits under that estate will also diminish the overall value.
So, if the beneficiaries of Prince were planning to divide that money between them, they will find that it’s close to reducing by as much as half. Conducting appropriate estate planning can avoid these problems and enable your loved ones to take faster action if you were to pass away suddenly.
Scheduling a consultation with a knowledgeable estate planning attorney is your first step for determining what to do.