Prince was known for his artistic ability, independence, exacting standards, and his ability to plan his musical recordings and performances with meticulous detail. But amazingly, when he passed away in 2016, he left behind an estate worth $156 million without a plan—and no will. What followed was a prolonged six-year legal battle that illuminated critical estate planning missteps, ultimately leading to disputes among heirs, valuation disagreements, and the sale of intellectual property rights.
As a tax attorney, I see Prince's case as a cautionary tale for families, particularly those involved in closely held businesses or with substantial assets. Here’s a breakdown of the legal drama and the lessons family businesses can learn from it.
The Complexity of Intestacy
Without a will, Prince’s estate went through the probate process under intestacy laws, where the court determines heirs and the distribution of assets. For Prince, this meant his six half-siblings were declared heirs. However, they quickly became entangled in disputes over the estate’s valuation, asset distribution, and governance.
Key Issues That Prolonged the Legal Battle:
1. Lack of a Will: Prince’s failure to plan and document his wishes created uncertainty and legal complexity.
2. Disagreements Among Heirs: The heirs couldn’t agree on a distribution plan, leading to repeated court appearances, lost time, court costs and legal fees.
3. Valuation Disputes: Initial valuations ranged from $82.3 million to $163.2 million. A final valuation of $156 million wasn’t reached until years later.
4. Sale of Shares: Some heirs sold their shares to a music publishing company, Primary Wave, adding another layer of complexity to the case.
Lessons for Family Businesses 
1. Have a Comprehensive Estate Plan
Prince’s case underscores the critical need for clear and thorough estate planning. For family-owned businesses, this includes:
- A detailed will or trust to outline the distribution of assets.
- Succession planning to ensure leadership transitions smoothly.
- Legal documents to protect the business and its intellectual property.
2. Promote Open Communication Among Stakeholders
Family disputes often arise from misunderstandings or hidden expectations. Regular meetings to discuss ownership, leadership, and succession plans can help reduce tensions. Transparency fosters trust and ensures everyone is on the same page.
3. Protect Intellectual Property
Prince’s extensive song catalog was one of the most valuable parts of his estate. Family businesses should proactively protect trademarks, copyrights, patents, and other intellectual property. Proper licensing and management agreements safeguard these
assets for future generations.
4. Plan for Unexpected Events
Prince’s death was sudden, leaving no time to plan. Businesses should have contingency plans, such as:
- Emergency leadership protocols.
- Key person insurance.
- Buy-sell agreements for ownership interests.
5. Resolve Disputes Privately
Public legal battles can harm a family business’s reputation. Prince’s estate litigation brought negative attention to his legacy. Consider mediation or arbitration as alternatives to court when resolving internal conflicts.
6. Update Estate Plans Regularly
As family dynamics, business operations, and laws change, estate plans must be updated. Regular reviews ensure the plans remain relevant and effective.
The Role of Professional Advisors
Prince’s case highlights the risks of navigating complex legal matters without professional guidance. Family businesses should work with:
- Estate Planning Attorneys: To draft wills, trusts, and succession plans.
- Tax Professionals: To address estate tax issues and minimize liabilities.
- Business Advisors: To ensure operational continuity during leadership transitions.
Preserving Legacy Through Estate Planning
The six-year battle over Prince’s estate not only delayed the distribution of assets but also jeopardized his legacy. Family businesses, especially those with valuable intellectual property or complex structures, must prioritize thoughtful estate planning. A well-documented plan can prevent disputes, protect assets, and preserve the legacy for future generations.
In the words of Prince himself: “A strong spirit transcends rules.” However, when it comes to estate planning, clear rules and guidance are the foundation for safeguarding what matters most.
Norris Lozano is a Senior Tax Attorney at Durfee Law Group, specializing in estate planning, wealth
management, strategic tax planning, and business succession strategies. Reach out for guidance on how
to protect your family business and your legacy through comprehensive estate planning.
The Battle Over Prince's Estate © 2024 by Durfee Law Group is licensed under CC BY 4.0 
The Battle Over Prince's Estate