People can learn a lot from Prince’s estate and the fact that he did not have an estate plan. Perhaps, most importantly they can learn how costly the lack of an estate plan can be.
There are several reasons why people decide not to get estate plans. One of the more common reasons is that people think that getting an estate plan is too expensive.
Attorneys’ responses to that reasoning are often taken as self-interested and thus fall on deaf ears. However, estate attorneys who were truly acting out of their own financial self-interest would normally dispense the opposite advice and tell everyone not to get an estate plan.
The reason for this is illustrated in Prince’s estate as TMZ reports in “Prince Lawyers Haul in Millions off Death.”
The estate administrator has submitted a legal bill for the court’s approval. It is requesting that the estate pay legal fees in the amount of $2.3 million to various attorneys who have worked on the case so far. The requested fees only cover work done between July 1st and September 30th. Since administering the estate is nowhere close to being finished, the final legal bill will be much more than that.
With an estimated worth of at least $200 million, it was known that it was going to be expensive to handle Prince’s estate. However, it would have been far less expensive, if the musician had taken the time to get an estate plan.
For only three months, of what certainly will be a long process, the legal fees alone have already eaten up 1% of the estate’s value.
That is a costly mistake.
Reference: TMZ (Dec. 1, 2016) “Prince Lawyers Haul in Millions off Death.”