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24
February
2017

No Estate Plan? It could cost you.

Cole Hickman

The Twin Cities Pioneer Press has reported that the government will take about half of Prince’s estate.  Prince’s total estate is valued at approximately $200 million.  About $100 million will need to be paid to the Minnesota and Federal government for estate taxes.

Prince didn’t have an estate plan.  He had no known will and had no known trusts.  If Prince had created an estate plan, he could have implemented strategies (such as trusts or charitable beneficiaries) that could have mitigated or completely eliminated the tax hit to his estate.

To make matters worse, it has also been reported that Prince’s estate has very little liquidity.  He reportedly has only $110,000 in cash.  He has no stocks or bonds.  Accordingly, many of his other assets might need to be sold in order to make the estate tax payments to the government. 

Estate tax planning isn’t just for $200 million estates.  This year in Minnesota, you will pay estate taxes if your estate exceeds $1.8 million.  The death benefit of your life insurance policies is included in your taxable estate value. Failing to implement an estate plan might mean the government is an unintended beneficiary. The attorneys at Sanford, Pierson, Thone & Strean, PLC routinely design and draft estate plans aimed at mitigating or even eliminating estate taxes. Call us to discuss how we can assist you.

http://www.twincities.com/2017/01/17/poor-planning-means-government-will-take-half-of-princes-estate/

http://www.kare11.com/entertainment/people/prince/prince-estate-taxes-due-this-week/386659292

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Wayzata, MN  55391


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