Wills and Estate Planning Prince died without a Will
Dying without a Will and Estate Plan is one of the worst things you can do to your heirs. News from the Associated Press last week and today that the Minnesota court has appointed an executor for Prince’s estate because his sister says he has no known Will is astounding. Estate law is different in each state, but the basic principles are the same: first a spouse, then children, then siblings are in line to inherit. Prince had no spouse or children, but one full and five half-siblings. When there is no Will, though, the federal government may receive as much as 55% before assets are divided.
How could this happen? A man who fought the music industry for control his entire, four-decade-long career now has no say whatsoever in what becomes of the use and income from his creativity and legacy. Some news sources estimate Prince’s estate may be as large as $350 million, or as small as $30 million, not counting future revenues. Future revenues are the key for a recording artist. According to news reports, Elvis Presley’s estate earned $55 million last year, and Michael Jackson’s estate just sold Jackson’s interest in Sony for $750 million a few months ago. What will Prince’s estate earn 10 years from now? More importantly, what will YOURS earn, and who will be benefiting from it?
We can’t all be music superstars or business moguls, but drafting a Will and creating an estate plan is an imperative for all adults, even if all you have is debt. Maybe especially if all you have is debt. Your friends and family may be rocking from the emotional impact of your death, but inheritance law is cold and clear: if there is no Will expressing your wishes as to how your assets be divided among loved ones, the government will take a cut, pay your debtors, then impassively parse what remains into portions according to inheritance and estate law.
This should be especially sobering for adults who have been or are divorced, have children, and have high assets or a business to pass on. It is especially important that you remove former spouses from your will, insurance policies and other vehicles with death benefits, or you may end up hurting your own children. For instance: a second wife might inherit the marital home, in which the father raised children from his first family. Result: the kids with the sentimental attachment may be shut out. Or, a remarried spouse who did not change his will may pass his marital home to his children, thus forcing his current spouse out of her home.
Even if there is no divorce, a Will should be revisited every few years to make sure it still reflects your wishes and the current market value of your assets.
A Will for Prince may still emerge. It’s only been 11 days since the rock icon died at age 57. It took six days for Jackson’s lawyer to file his Will. Prince reportedly cycled through numerous companies, managers and lawyers during his lifetime. Perhaps his wishes will still emerge in an enforceable format.
But do you truly want to leave your estate in the Court’s hands? Revisiting or rewriting your Will and letting your heirs know in advance what it says or at least where it can be found may be one of the kindest memories you can leave for those you truly loved.