Court Approves Asset Distribution Agreement, Closes Prince’s Estate

Since then, lawyers and consultants have been paid tens of millions of dollars to administer his estate and develop a plan for its distribution.

The IRS and Comerica settled in the spring of 2021 on the real estate portion of Prince’s estate. However, it took until October 2021 to complete the more delicate task of valuing intangible assets, such as the rights to Prince’s music.

As part of the deal, the IRS waived a $6.4 million “accuracy penalty” it imposed on Prince’s estate. The Minnesota Department of Revenue, which agreed to the estate valuation, also waived a penalty for accuracy, according to court filings.

Ultimately, the estate will be almost evenly split between a New York music company – Primary Wave – and the three oldest of the music icon’s six court-recognized heirs or their families.

As part of the court-announced agreement, all future interests held by Prince’s six heirs will be transferred to two successor entities – Prince Oat Holdings, LLC and Prince Legacy. Each will receive approximately $2.8 million in cash and half of the membership units of estate-owned entities (PRN LLC, PRN Real Estate LLC, NPG Records LLC, Paisley Park Enterprises LLC, and NPG Music Publishing LLC).

Additionally, Comerica may retain a reserve of $3 million to pay for additional expenses related to closing the estate. Portions will then be distributed to successor entities until they are empty.

Comerica is also authorized to make payments from the estate to resolve attorney liens filed against heirs.

Eide has agreed to formally approve the deal as soon as the necessary paperwork is filed, which could be as early as Friday afternoon.