New Jersey residents who are fans of Prince are likely aware that the star, who died suddenly in April, apparently did not have a will. Since he didn't have an estate plan in place, his sister and five half-siblings stand to inherit his extensive assets.
According to the Associated Press, Prince's estate is believed to be worth around $200 million. The value was calculated from the amount of the fee that was submitted to the court by Bremer Trust, the company that had been in charge of overseeing the distribution of the estate's assets.
The estate's value includes Prince's Paisley Park estate, his music catalog and other assets. It has earned $25 million since Prince's death because of the music catalog. The value will likely decrease dramatically due to estate taxes, probate costs and fees involved with administering the estate. Prince died without any children and as not married, which is why his estate is set to go to his siblings.
When people die without wills or trusts, their assets will be distributed according to the state's intestacy laws. Those who want to designate that certain persons receive assets may do so by writing a will or establishing a trust with the designated beneficiaries named in them. When estates are very large, their values may be significantly reduced by estate taxes. It's possible to write estate plans in certain ways to minimize the amount that will have to be paid to the IRS. An estate planning attorney may help clients with writing comprehensive estate plans. In addition to wills and trusts, an attorney may suggest that they also have durable powers of in place in the event that they become incapacitated and unable to make financial or health care decisions on their own.