Prince’s Estate Estimated At $156.4 Million In Heirs’ Settlement With IRS
The estate of the deceased pop singer Prince – including his archive of songs including “When Doves Cry,” “1999” and “Purple Rain” -– has been valued at $156.4 million after a lawsuit that lasted for six years.
Comercia Bank, the estate’s administrator, came to an agreement on the value with the Internal Revenue Service (IRS) and the inheritors to Prince’s estate. Since the artist passed away in 2016 without leaving a will, it has been decided that his estate will be split between his three siblings and Primary Wave, the publishing company that obtained the rights to Prince’s music from another three heirs (two of them are dead) in August 2021.
Prince’s heirs will be able to receive income from streaming and transaction fees as well as usage of Prince’s songs in movies, commercials and television shows.
The IRS initially valued the estate at $163.2 million (twice the amount of the previous estimate that Comerica submitted). The higher value means that the IRS will take more in tax.
Back in 2020, Comerica had sued the IRS for errors allegedly made in its evaluation. Although Comerica wanted the case to go to trial, the heirs had insisted on an agreement to conclude the lawsuit sooner.
Prince’s heirs now hope to get their distributions from the estate next month.