How a Trust for Prince Could Have Helped
A trust for Prince could have kept decisions in trusted hands, provided a roadmap for a unique music business, and minimized courtroom battles.
The long fight over Prince’s estate shows why a trust for Prince might have spared years of conflict—as fans watched a global icon’s legacy get sorted in public court. A thoughtfully designed trust for Prince might have kept things private, faster, and far less expensive.
What Happened After His Passing
Prince passed in April 2016 with no will, which meant that Minnesota’s probate court had to identify heirs, value assets, pay taxes, and supervise distribution. Carver County opened the case immediately and appointed a special administrator, and by early 2017 the court put a bank in charge of the complex estate.
The court recognized six siblings as heirs. With no estate plan, every decision—from catalog releases to Paisley Park—flowed through probate. Years passed while the estate remained open.
The Big Issues
Valuation
The largest fight was over what the estate was worth for tax purposes. Initially, Comerica pegged it near $82.3 million; the IRS countered at $163.2 million. Then, after nearly six years both sides agreed to $156.4 million, and the IRS dropped its accuracy-related penalty.
Who Controls What
During the process, music company Primary Wave purchased interests from some heirs. By mid-2022, the court approved a structure that left Primary Wave with roughly half the estate and the remaining shares with three of Prince’s oldest siblings or their families.
Ongoing tensions
Even after the valuation deal, management disputes flared among stakeholders in 2024, underscoring how difficult it is to run a valuable music business by committee.
How It Ended
In January 2022, the court accepted the final valuation of $156.4 million. Then in July 2022, the probate case finally closed. Court filings showed about $104.8 million available for distribution after taxes and liabilities, with ownership split between Primary Wave and the family heirs. But years of delays, fees, and friction were the price of going intestate.
A trust for Prince might have avoided probate entirely, keeping finances and business decisions private and moving faster. Trusts generally avoid court supervision and public filings, speeding up transfers and reducing conflict. With a trust, Prince could have 1) named a successor trustee and business team, 2) set valuation methods, 3) directed cash flow and releases, and 4) enhanced tax planning.
Naming a Successor Trustee
Clear instructions for who managed his catalog, vault recordings, and brand could have reduced fights over control. A trust for Prince could have specified voting rules, tie-breakers, and professional managers.
Setting Valuation Methods
A trust for Prince could have spelled out appraisal standards for master recordings, publishing, likeness, and real estate. That guidance can shorten tax disputes by narrowing the range of acceptable valuations.
Directing Cash Flow
He could have set policies for posthumous projects and payouts to heirs, including reserve funds for taxes. A trust for Prince could have staged distributions over time, which can help families avoid pressure to sell core assets.
Enhancing Tax Planning
While a revocable trust doesn’t itself cut estate taxes, pairing it with irrevocable tools (like charitable or life-insurance trusts) can reduce tax drag. Therefore, a layered trust strategy could have balanced control, privacy, and tax efficiency.
In the end, a trust for Prince could have kept decisions in trusted hands, provided a roadmap for a unique music business, and minimized courtroom battles. The public saga—valuation wars, shifting ownership, and fresh disputes—offers a clear lesson. When creative legacies and closely held businesses are involved, a tailored trust plan can protect both the art and the people who love it.