The government will get a $150 to $250 million payday from Prince's estate

[Miles Archer]

Both the federal government and Minnesota’s state government will assess so-called “death taxes” or estate taxes on Prince’s assets, taking away more than half his estate. Between his physical assets—cash, investments, home, etc.—and his future royalties, Prince’s estate has been estimated to be between $300 and $500 million.

If Prince were married, he could have passed on the entirety of his estate to his spouse tax free. However, without a spouse, only $1.6 million of Prince’s estate will be free from Minnesota’s death tax and only $5.45 million will escape the federal death tax.

The combination of Minnesota’s top death tax rate of 16 percent, plus the federal government’s 40 percent rate, means that over 50 percent of Prince’s estate will go to the government.

Had Prince known ahead of time that he would die at such a young age, he may have been able to reduce the government’s reach into his estate through tax planning, but with a fortune as large as his, the government’s claim to his estate was inevitable.

http://dailysignal.com/2016/04/29/why-over-half-of-princes-estate-will-go-to-the-government/

[Sherman A1]

1. I believe

that the term inheritance tax is more appropriate. "Death Tax" is a term as I recall is something that our esteemed friends in the GOP.

In any event the heirs will still come out rather nicely and whomever ends up with the rights to the music will undoubtedly do rather well.

[2naSalit]

2. +1

[Stallion]

11. This is Also a Ted Misleading

"If Prince were married, he could have passed on the entirety of his estate to his spouse tax free."

The assets would still be taxed at his spouse's death-which at least should have been mentioned

[scscholar]

28. It is a tax for dying...

and it should be a hell of a lot more than that tiny percentage.

[YOHABLO]

29. The use of death tax is a Right Wing meme they love to use rather than an estate tax.

I think it's so unfortunate that the government takes so much of someone's hard earned money. But of course that's why people who are extremely wealthy hire fat cat lawyers. Prince should have taken measures to avoid this from happening. Who ever lays claim to his fortune will still make out well.

[Igel]

33. The term "death tax" is widely taken

left of center to come from the GOP because it was discussed as such in the '00s.

The term's been around for at least a decade before the GOP started to use it and before those left of center decided that the GOP must have coined it.

It was used in the tax planning industry, right and left, in the '90s and "we" didn't bother to notice it until it became used by our domestic foes. First attestation is more important than first notice by a subgroup. It was certainly used by opponents.

http://www.npr.org/sections/thetwo-way/2010/12/16/132031116/a-history-of-how-we-got-from-estate-tax-to-death-tax says that it was used (first?) in the 1940s by opponents. I suspect it was lurking in unwritten language for a while before first attestation (that's typically how things work).

The wiki article https://en.wikipedia.org/wiki/Estate_tax_in_the_United_States#The_term_.22death_tax.22 says that the language or similar language actually appeared in the legislation in the '50s and carried into at least the '80s.

Of course, Lakoff finds that it's a neologism used in framing in the recent past. That's Lakoff, making a certain species of linguistic thought serve a higher, or at least a political, end. Advocacy research sux.

As an aside, Prince was clearly in the 1%, and those who say that behind every great fortune there's a great crime either must really dislike his music or fall silent before the self-serving inaccuracy of their quote.

[Yupster]

3. If he were married the estate would still be taxed at the

second death.

It was being said that Prince had no will. Haven't heard if that had been updated.

A lesson for us all though. If you don't have a will, then get one, especially if you have minor children. Without a will, some lawyers are going to get rich administering the dispositions of his estate.

[Hoyt]

5. Then again, with a will, some lawyer would have gotten rich shielding the estate from taxes

not to mention fighting attacks on the will's provisions by family, etc., after death. Sounds like Prince just didn't want to hassle with it, knowing his family would be taken care of even if they had to fight for a share. He certainly had attorneys he could have turned writing a will over to if he cared.

[Yupster]

6. He should have had trusts set up

That's too much money to have in your own name.

On the other hand, what difference does it make to him now who gets it.

[EL34x4]

23. Exactly. He had no wife. He had no children.

He had nobody depending upon him for financial security.

[jwirr]

7. Your advice is so sound. And it does not just apply to the

traditional will regarding property. There are other wills just as important - living wills that apply to healthcare and end of life decisions.

Life and death can and do come at anytime. You can walk out the door and face death at anytime in your life. As a social worker for Developmentally Disabled children and adults one of the first things we did as case managers is get those papers into effect. Guardians and parents are encouraged to put their wishes down so that they are there when needed.

[leftofcool]

31. That living will and DNR was the first thing we did after the Shaivo case.

[winstars]

4. dog whistles and that left wing website the Daily Signal... nice.... nt.

[pintobean]

8. Facts are facts

I don't hear any whistle, but I guess you must.

[hfojvt]

16. "death tax" is a whistle

and not a fact.

All of us will die, most of us will not pay a "death tax" although I have been told that even for a small estate, like mine, there is a 15% probate fee. Hence, for all my CDs and things I make them "payable on death" to avoid those fees.

[n2doc]

9. And there is something wrong with this?

I'll bet when it is all said and done the Lawyers for the various people trying to get a cut of his estate will get more.

Frankly this country would be far better of with at least a 50% tax on all large estates. We don't need to support a stinking oligarchy here.

[basselope]

10. A "payday"

What a weird way to refer to it.

It's an estate tax not a "death tax".

And is 150 million not enough for someone?

In short, the beneficiaries of Prince's estate will live in comfort for generations.

[Miles Archer]

13. Did you read the full title of my post, or did you stop at the word "payday?"

Half of the estate is a payday for the government.

And is 150 million not enough for someone?

In short, the beneficiaries of Prince's estate will live in comfort for generations.

That's not the point of the article or the post. Prince had nothing in writing so the government takes half. Sorry that wasn't clear to you.

As far as "death tax" versus "estate tax," you can take that up with the author of the article.

[basselope]

22. Your post doesn't have a point.

Having "something in writing" doesn't change that the government takes half, you realize that, right?

Even if he had a will with every dollar bequeathed, it would STILL be subject to the estate tax.

The way to AVOID estate taxes, if you choose, is to A) Be married so everything automatically passes to your spouse. B) Own properly jointly with another person or entity such that the property automatically transfers upon death.

[hunter]

12. As it should be... except for the portion that will pay for wars and war machines.

Planes like the F-35 are useless, new aircraft carriers are useless, humvees dropped from airplanes are useless.

Prince was a pacifist.

Wouldn't it be cool if his estate taxes could be used to help people who he would have helped?

[Miles Archer]

14. That was my reaction...

...if he had any thoughts about how the money was to be spent, it probably wouldn't have been thoughts of warfare.

[Stallion]

35. ...Or He Could Have Made a Will With a Charitable Bequest

and paid that much less taxes

[hunter]

36. It's a little late for regrets.

I'm pretty sure wealth will never be a problem I have to worry about. I'm never far removed from the dumpster-diving kid who was living in his broken car in a church parking lot, and I don't buy lottery tickets.

[hfojvt]

15. if I had my way the government would get even more

Does that make a difference to him now? He could have given a lot of money away when he was alive, and probably he should have (maybe he did, but apparently not enough)

[philosslayer]

25. Why do you think he didn't give enough away?

Do you have any idea how much he DID give away?

[RiverLover]

17. "Government payday" is a derogatory republican term for taxes.

Um, (cough) Democratic poster, we sort of need taxes to pay for our USDA, FDA, FCC, roads, military, health dept, etc. You know, those things that make US a civilized society?

WTH?

[Stallion]

18. Federal Tax Exemption in 2016 will be aVery Generous $5.45 Million(10.9 Million) for Married Couples

tax doesn't even accrue until above the exemption amount

http://www.forbes.com/sites/ashleaebeling/2015/10/22/irs-announces-2016-estate-and-gift-tax-limits-the-10-9-million-tax-break/#1d344886a7c3

[davepc]

19. He refused to make a will or do any estate planning.

Thats on him, there are plenty of loopholes.

[Starry Messenger]

20. It's too bad he didn't make a will, but maybe he wanted it this way.

I'd like to think some of the money will go to public schools, maybe music programs.

[eShirl]

21. Thank you Prince for paying your fair share

and not trying to get out of it by taking advantage of tax loopholes as if they were mandatory.

[Enrique]

24. if you're going to post Heritage Foundation propaganda

at least disclose that's what it is, and give a reason why you're posting it.

[Iggo]

26. Good.

[HassleCat]

27. That does not make me sad.

A wealthy person dies. He has no children depending on him. Any money he leaves behind is simply a windfall for relatives, etc. If the government gets half, that still leaves half for people who don't need it in the first place.

[cheapdate]

30. I fully support the "death tax".

Only, I would prefer to structure it to take more of large estates.

We instituted "death taxes" because Americans wanted to avoid the creation of a landed aristocracy, like in old Europe.

If $5 million tax-free and then 40% on the amount above that isn't enough to live, then sell some land or property.

[sendero]

32. Good..

.... the "death tax" sometimes keeps some money from going to people who simply did nothing to earn it and I am fine with that.

[bhikkhu]

34. If I died rich, with no heirs, that would be fine with me

In any case, I think Prince cared more that people would continue to enjoy his music. I'm not surprised that he didn't squirrel his monetary assets away somehow, what would be the point?

Estate taxes, btw, are one of the best means government has to reduce wealth inequality and support social mobility.

[ButterflyBlood]

37. Daily Signal? Seriously?!

Why on Earth are we just parroting right wing whining from that far right site here?