Unlike Prince, are your clients prepared?

Recent news releases regarding the untimely passing of music icon Prince indicate a storm brewing regarding value of his estate and “who gets what.” First in line for a large share of the inheritance are the Internal Revenue Service (IRS) and the State of Minnesota (where Prince resided in Paisley Park) to cover any estate or death taxes due. Since Prince was not married, no unlimited marital deduction is available. Thus, the IRS is expecting 40 percent of the final estate value to be coming their way, while the state of Minnesota will gladly accept 16 percent. Since no will or legal directive have been located at this time, a special administrator has been appointed to help navigate the storm.

Prince’s estate is projected to be valued somewhere between $300 and $500 million. The ambiguity of the valuation is due in part to the dilemma regarding monetary value of non-released music contained in a special vault at the home. Without previous planning by a professional, guess who will make the final determination of value?

As a life insurance professional, do you know how many of your clients may be in a similar situation to that of Prince, potentially on a smaller scale? Small business owners generally rely on their business to be their retirement plan, but what happens to families and employees if the business owner dies prematurely? Have you met with these clients to assist them with a thorough analysis and valuation of their business? For most small business owners, their business and personal finances are closely related. Is a business continuation plan in place to make certain the heirs will continue to receive a monthly paycheck?

Without your help, a family may be forced to sell the business (generally at less than true value) to pay state or federal taxes. Without a formal business valuation, death of the business owner may open the door to the IRS to determine value. Without you, a lifetime of blood, sweat, tears and sacrifice may leave a family with nothing but memories of the “prince” in their lives.

Creative One Power 10 Sales Concepts

Watch this Power 10 exclusive and learn why this happened and various business strategies to help your clients avoid Prince’s estate planning failure.

We’ll explore how business clients can:

  1. Plan their exits
  2. Create retirement income.
  3. Develop an estate or wealth transfer.
  4. Protect their businesses.
  5. Navigate tax-advantaged options.

Want to watch more Power 10s? Click here to visit the complete suite.

Give your Life Sales team a call and we’ll help your protect your business owner clients. 800.992.2642

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