Prince’s Estate Is a Royal Mess: 5 Ways You Can Do Better
Six years of legal wrangling later, Prince’s estate is finally moving forward. Here are five critical mistakes he made that all of us can learn from.


When pop superstar Prince died of a fentanyl overdose in 2016, he left behind significant assets, many relatives … and no will. It was a recipe for disaster. In addition to tangible assets – money in the bank, real property – Prince left music rights and the value inherent in his name and likeness. Comerica, the estate’s administrator valued it all at $82.3 million; the IRS said it was worth twice that amount – a whopping $163.2 million – and asserted a tax claim for $39 million.
It took six years and tens of millions of dollars in legal fees, but the heirs and the IRS finally came to terms in January, agreeing on a final valuation of $156.4 million. In the interim, there were changes. Prince’s half-brother passed away in 2019, leaving a will that opened the door for new, unrelated parties to assert claims against the estate. Now the process of distributing the vast estate finally begins.
We may not possess a fraction of Prince’s estate, but we can all treat our heirs like royalty. Simple steps now can prevent a nightmare like the one his family experienced. These are five key lessons from the Prince estate debacle.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
1. Make a will
It sounds obvious, but an up-to-date will was clearly not on Prince’s priority list. Your will tells the court how you want to distribute your property, and it ensures that minor children will be placed in the care of someone you trust. Without a will, the court will make those decisions on your behalf.
To be valid and binding, a will must be signed by someone of sound mind; unrelated witnesses may also be required in your state.
Although a DIY will may sound enticing, don’t do it. A mistake can send an otherwise simple will to litigation, where any money saved is quickly eaten up by legal costs. Have a legal professional create your last will and testament.
2. Know what you have
Start your inventory with big-ticket items, such as real estate and savings accounts – trusts and life insurance policies will bypass probate if beneficiaries have been named – and work your way down. Your grandmother’s recipe book and your father’s tie clip may not have monetary value, but they mean something to somebody. Put them on a spreadsheet so they don’t fall through the cracks when you’re no longer here. It may also be helpful to add a column to the spreadsheet showing to whom you intend to pass the asset, so you can refer to it as you draft your will.
3. Know what it’s worth
The IRS and Comerica settled last spring on the real estate portion of Prince’s estate, but it took another year and a half to arrive at a valuation for intangible assets, such as rights to Prince’s music. The IRS ultimately dropped a $6.4 million “accuracy-related penalty” it had levied on Prince’s estate, and the Minnesota Department of Revenue also dropped an accuracy penalty. However, the fight over value resulted in a huge tax bill that will likely force Prince’s heirs to sell their interests in his catalog, rather than reaping its long-term benefits.
Protect your heirs by enlisting the services of a reputable expert to value jewelry, artwork and other items of unique value, and be sure to keep all documentation in a safe place. Although valuations change over time, having a general idea of an asset’s value when making estate plans can spare your heirs severe tax consequences down the road.
Include a valuation column on your asset spreadsheet in which you insert the best information you have for each item and the basis for that valuation. If you’ve received a professional appraisal, indicate the source and the location of any supporting documentation; if it’s a best guess, state as much. Save your beneficiaries a fight over valuation by assigning a value or a process for determining values if one beneficiary wants to buy out others or receives a specific property.
4. Anticipate family dynamics
Even the best of families can morph into dysfunction when a loved one dies. How sad to think that your death could create a permanent divide between your relatives. Make things simple by creating a clear plan that leaves nothing to chance. Just because you’ve told a close relative that you want them to have your silverware, don’t assume that everyone knows this or will be happy about it.
In Prince’s case, the court was left to divide his extensive estate – including his Paisley Park studios-turned-museum, real estate and music rights – equally among six blood relatives. Had Prince simply spelled out his wishes prior to death, his heirs may not have been happy but they would have received their inheritance intact and in a reasonable time. Instead, they had to watch and wait as the estate doled out tens of millions of dollars to lawyers and consultants and valuable assets to pay those fees.
A letter that clearly explains to your heirs the reasons for your decisions can head off hurt feelings, acrimony and possible legal challenges. When the only decisions your relatives have to make are what to wear to the service and what kind of food to order afterwards, you’ve given them a precious gift.
5. Name an executor
Designate a trusted individual to carry out your will's instructions and manage the affairs and wishes of your estate. Don’t make it a surprise. The more prepared and informed your executor is, the smoother the process will be. Your designee should understand what he or she will be required to do. If you sense any hesitation or concern, talk through those concerns. If it still doesn’t feel right to one or both of you, identify another person to serve in this important capacity, someone who will truly have your heirs’ best interests at heart.
The largest beneficiary of Prince’s estate was the IRS, followed by the administrators and attorneys. A close family member or friend may be willing to waive compensation and should work to keep fees down so that the bulk of your estate passes to your loved ones.
Prince probably thought — like most of us do — that he had plenty of time to get his affairs in order, or he may have concluded that whatever happened after he was gone was none of his concern. Creating an estate plan is an extremely personal decision, but it has huge consequences. It is perhaps the strongest expression of love that the law recognizes.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Jack Hales is a founding partner at Hales & Sellers PLLC and is board-certified in Estate Planning and Probate Law. Hales primarily focuses on areas of estate planning and probate, including representation of executors, fiduciaries and beneficiaries in uncontested and contested estate and trust matters.
-
It Could Soon Be Harder to Get a Refund on a Flight Gone Wrong
The Department of Transportation's deregulation efforts are taking aim at your rights to compensation for delays, canceled flights, lost baggage and more.
-
The Final Countdown for Retirees with Investment Income
Retirement Tax Don’t assume Social Security withholding is enough. Some retirement income may require a quarterly estimated tax payment by the September 15 deadline.
-
Four Clever and Tax-Efficient Ways to Ditch Concentrated Stock Holdings, From a Financial Planner
Holding too much of one company's stock can put your financial future at risk. Here are four ways you can strategically unwind such positions without triggering a massive tax bill.
-
Beyond Banking: How Credit Unions Serve Their Communities
Credit unions differentiate themselves from traditional banks by operating as member-owned financial cooperatives focused on community support and service rather than shareholder profit.
-
Answers to Every Early Retiree's Questions This Year, From a Wealth Adviser
From how to retire in a crazy market to how much to withdraw and how to spend without feeling guilty, a financial pro shares the advice he's given this year.
-
The Risks of Forced DST-to-UPREIT Conversions, From a Real Estate Expert
Some new Delaware statutory trust offerings are forcing investors into 721 UPREIT conversions at the end of the hold period, raising concerns about loss of control, limited liquidity, opaque valuations and unexpected tax liabilities.
-
I'm a Financial Adviser: You've Built Your Wealth, Now Make Sure Your Family Keeps It
The Great Wealth Transfer is well underway, yet too many families aren't ready. Here's how to bridge the generation gap that could threaten your legacy.
-
Want to Advance on the Job? Showing Some Courtesy and Appreciation Could Help
Two business professors share their insights about the impact of digital communication on the social skills of some in Gen Z and the importance of good manners on the job.
-
From Job Loss to Free Agent: A Financial Professional's Transition Playbook (and Pep Talk)
The American workforce is in transition, and if you're among those affected, take heart. You have the skills, experience and smarts that companies need.
-
A Financial Planner's Top Five Items to Prioritize When Your Spouse Is Ill
During tough times, it's easy to overlook important financial details, but you'll be so much better off if you take care of these things right now.