Although the quote: “Where there is a will, there is a way” is meant to encourage perseverance, it also seems appropriate in the estate planning realm as a Last Will and Testament can guide surviving family members as to the disposition of assets after a person’s death. In the case of Prince, the quote is better modified to say: “Where there is no will, there is a messy road ahead.” As reported earlier this week, Prince’s sister filed an emergency petition asking the court to appoint a special administrator to oversee the initial stages of administering Prince’s estate. She did so because no Last Will and Testament could be located. The Court agreed and appointed Bremer Bank, National Association as the special administrator. The Court’s actions allow Bremer Bank to marshal or gather the assets and preserve such assets until a personal representative or executor can be appointed. In short, it appears that Prince failed to plan and the laws of Minnesota will now dictate what happens to his estate.
And what does this all mean? Dying without a Last Will and Testament or a revocable living trust means that a person is intestate and the laws of the state in which they resided at death will spell out who is to receive the assets of the estate. In Prince’s case, since he had no spouse or surviving children or parents, his siblings, both full and half siblings, are the beneficiaries of his estate under Minnesota law. Thus, the law of unintended consequences may now apply as Prince may not have wanted his siblings to become the beneficiaries. He may have wanted to include charity or friends perhaps even other relatives. But, without a Last Will and Testament or revocable living trust, we will never know what his wishes may have been.
It will also be interesting to see how the administration of Prince’s estate unfolds. A number of questions will have to be asked and answered, including, but not limited to: Who will end up being the personal representative or executor? What debts does the singer have? How will the estate tax be paid (both at the Federal and state level since Minnesota has an estate tax)? What assets will each beneficiary ultimately receive? Will an agreement be reached amongst the beneficiaries regarding the management and distribution of the assets? Unfortunately, the process that has begun will be lengthy, likely expensive and may result in the dismantling of a legacy if the process devolves into an ugly court battle. All of which could have been avoided or at least minimized had Prince simply planned.
