Prince died tragically and young!!
With a $5,450,000 federal estate tax exemption, Prince will have a $294,550,000.00 taxable estate will be subject to the 40% estate tax rate (this is approximate, not exact because the estate will have deductions, etc.). In addition, being a Minnesota resident, his estate is also subject to Minnesota “death taxes” and the Minnesota exemption amount is only $1.6M with Minnesota’s top death tax rate at 16%. When added together (40%+16%), over half of Prince’s estate will be taken by the federal and state governments. Prince could have avoided a lot of this tax, if he had estate planned.
A good estate plan, regardless of the size of your estate, is essential. Do not let this happen to you. If you have questions about an estate or how it is being handled, please call us immediately at (214) 965-9999. We look forward to talking with you about your situation.