Who doesn’t hate taxes – raise your hand. Anyone? Anyone? That’s what I thought. As all of you should know be now, Prince passed away recently in his home from a currently unknown cause. He is survived by a sister and a slew of cousins, aunts, and uncles – as well as an Estate estimated at $300-500 million. And, oh yeah, NO ESTATE PLAN! No will, no trust, nothing.
Without a will, his estate will pass through Minnesota’s intestacy laws and, without any tax planning, will be subject to BOTH federal and Minnesota estate taxes. Ouch.
If her were married, he could have passed the entire estate to his surviving spouse tax-free (until she passes, at least), but since he died single, only the first $1.6 million will pass free of Minnesota estate tax and the first $5.45 million will avoid federal estate tax. The other $298-498 million? It will be subject to 16% Minnesota estate tax and 40% federal estate tax. Again: Ouch.
Obviously Prince is not your everyday intestacy scenario, but his death illustrates what can happen when someone with wealth passes without an estate plan. Prince’s Estate will likely have to sell off a substantial portion of its assets in order to pay that tax bill. Likewise, if a business owner passes without an estate plan and is subject to estate tax, their estate may be forced to sell all or part of the business in order to pay the estate tax liability – and then what is the family left with?
Point being: plan ahead. Don’t let an unexpected and untimely death derail your family’s future.
Author Bio
Paul Yokabitus
Founder & Estate Planning Lawyer
Paul Yokabitus is the founder of Cary Estate Planning, where he helps North Carolina families protect what matters most through wills, trusts, probate, and special needs planning. Known for his “planning, not paperwork” approach, Paul turns complex legal concepts into clear, practical strategies so clients feel informed and confident at every step. He has been recognized as a Business North Carolina Legal Elite attorney and a Super Lawyers Rising Star, and was named to the Triangle Business Journal’s 40 Under 40. A graduate of Campbell University School of Law, Paul lives in the Triangle with his wife, Alix, and their two sons.
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How We Help North Carolina Families
Paul and his team at Cary Estate Planning are fully committed to creating a personalized experience to develop thorough and comprehensive estate plans. They value their clients and go above and beyond to make sure that no details are missed. I would highly recommend Paul to anyone looking to create an estate plan.
I was referred to Paul by my Real Estate Attorney and I could not say enough about how exceptional the client service has been from everyone I spoke to. The communication is prompt and I feel like they really took the time to answer all my questions and set things up exactly as I wanted, but also recommended things to make it easier on my family down the line.
After attending one of Paul’s estate planning seminars, my husband and I knew we wanted Paul to assist us with our estate planning. His honest, professional approach to this necessary part of life put us at ease with the process. We will continue to recommend Paul and Cary Estate Planning.
We had a great experience working with Paul Yokabitus and the team at Cary Estate Planning to set up our Will and Estate Plan. The process was clear and easy, and in the age of COVID, our signing session was very well done, easy, and safe.
The Cary Estate Planning team will make sure that you have the information you need to be confident in your estate planning decisions. I learned so much from videos, a one-on-one in-person consultation, the website, emails, and a newsletter mailed the old fashioned way. The fee is very reasonable given the importance of estate planning. No matter the size or number of your assets, don’t procrastinate like I did!
Paul is a masterful attorney. He’s very good at taking your intentions and defining that into a durable Trust and Will. Best of all he is as simple and plain-spoken as you like. Or as fast as intellectual as you may be. It’s all about your your speed and your desired outcomes. Would strongly recommend this firm.
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