Death and Taxes: Hard Lessons from Prince’s Lack of Estate Planning

Prince Died in 2016 Without a Will or Estate Plan. After six years, the IRS and the estate’s administrators finally agreed to an estate value of $156.4 million. An estate the size of Prince’s could incur up to $84.9 million in estate taxes, due within nine months of the final valuation. Life insurance is a cost-effective and efficient way to fund estate tax obligations for pennies on the dollar. If properly structured, the life insurance death benefit will not be subject to income tax or estate tax.