It’s now been five months since Prince passed away at his home in the Twin Cities. The local, national and international response to his passing has transitioned from expressions of loss and grief to controversies and court ruling about the disposition of his estate.
Prince’s estate is thought to be valued at between $300M – $500M and it is expected to grow significantly in coming years, making him one of the most wealthy entertainers in the world.
Although he was thought to be the master of his own economic destiny in a way that is unmatched in today’s music business, he neglected to attend to one critical matter: Prince did not have a will. Ironically much of what he valued, including charitable giving and control of his music, may be lost because of this.
Prince died with no spouse and had no children. Under Minnesota law, when there is no will, an estate passes to the nearest relative, and, not surprisingly, there are at least nine potential heirs claiming shares of Prince’s estate, all of them armed with teams of lawyers.
Other interested parties include both the state and federal governments who potentially could receive half of his assets in taxes. The outlook for additional funding for Minnesota schools and roads has never looked better, and, of course, the Federal Government is never lacking for new programs that need funding!
Prince’s situation is a good reminder that your organization’s best friends and supporters could be in a similar situation if they have not made decisions regarding the destination of their estate assets. His death at a relatively young age is also a reminder to all of us that the time to prepare a will is now, not someday.
Prince’s situation is also a good reminder of the importance of your organization’s Endowment Development Program, a program that provides consistent and important information to your supporters about how they can effectively pass along estate assets to their heirs, support preferred charities and avoid state and federal taxes.
Don’t let these good friends to your organization give half or more of what they’ve worked so hard for over their lifetime to be given up for taxes. Wills and careful estate planning can help them define their legacy. Perhaps your Endowment Program will be the reminder they need to create or refresh their own estate plans.
If Donor By Design can be helpful in establishing an endowment development program or renewing an existing program, please give us a call.
