Just two years ago, the lengthy and expensive legal dispute over Prince’s estate seemed to have finally ended. However, three of the pop icon’s heirs now find themselves back in court, this time as defendants in a lawsuit concerning their recent actions surrounding an LLC created to preserve and protect Prince’s legacy and intellectual property.
According to Rolling Stone, L. Londell McMillan and Charles Spicer Jr., former business advisers to Prince, filed a lawsuit against the defendants in January 2024. The lawsuit centers on issues related to Prince Legacy LLC, the Delaware-based holding company that controls roughly 50% of Prince’s extensive music catalog. The duo owns a 10% stake in the company, which was provided to them as compensation for their assistance with previous estate litigation and in establishing the LLC.
McMillan and Spicer were seeking, among other things, to be reinstated as managers of Prince Legacy LLC after the defendants had ousted them, arguing that the documents ousting them were invalid. Delaware Chancellor Kathaleen St. Jude McCormick agreed and subsequently granted summary judgment in their favor, but she has yet to hear their other claims surrounding the defendants. Now, further litigation or possibly even a trial is likely to ensue.
Though it’s hard to say how this court battle will play out, we’ll provide you with a detailed breakdown of what is happening with Prince’s estate so you can make your own predictions.
What to Know About the Death of Prince
A significant amount of time has passed since Prince’s death, and as a result, many details about the beloved superstar’s passing may have faded from memory.
In the following sections, we provide background information on Prince’s death to help you better understand the current developments regarding his estate
When Did Prince Die?
Prince Rogers Nelson, better known as Prince, died on April 21, 2016.
He was survived by his sister, Tyka Nelson, and five half-siblings, Sharon Nelson, Norrine Nelson, John Nelson, Alfred Jackson and Omarr Baker.
Prince died without a will or an estate plan of any kind.
How Did Prince Die?
Prince’s cause of death was a fentanyl overdose. The medical examiner determined the singer self-administered the dangerous drug at Paisley Park, his home and recording studio in Chanhassen, Minnesota.
Fentanyl is a powerful opioid that is known to have lethal side effects when administered improperly or outside of medical settings.
What Was Prince’s Net Worth at Death?
There was considerable disagreement over Prince’s net worth at the time of his death.
Comerica Bank & Trust, who was serving as interim administrator of Prince’s estate, valued the estate at $82.3 million, according to NBC News. The IRS, however, contested Comerica’s appraisal, instead valuing the estate at $163.2 million.
Ultimately, both parties reached an agreement, settling on an appraisal of $156.4 million, reports the Minneapolis Star Tribune.
Who Inherited Prince’s Estate?
Despite Prince’s extremely high net worth, he died without a will or estate plan of any kind (i.e., he died intestate). This meant the late superstar would have no control over the distribution of his assets.
When a person dies intestate, their assets generally pass down according to the intestate succession laws in their state. Because Prince had longstanding ties to Minnesota and his primary residence, Paisley Park, was located there, his estate would be subject to Minnesota intestacy laws.
Minnesota intestate succession laws provide for the deceased person’s closest surviving heirs to inherit their assets. In Prince’s case, his closest surviving heirs were his sister and five half-siblings, since he did not have a spouse at the time of his death nor were his parents alive.
Whether or not a person dies with a will, most states will require their estate to pass through probate. This court-supervised process is designed to authenticate the deceased person’s will (if they had one), appoint a personal representative (i.e., an executor or administrator) to oversee the estate, ensure outstanding debts are paid, and confirm that heirs or beneficiaries receive their rightful inheritances.
Certain types of assets may not be subject to probate. For example, assets held in trust and assets with beneficiary designations (e.g., bank accounts, life insurance policies, annuities and retirement accounts) are typically not subject to probate.
Because of how expensive and time-consuming probate can be, many people plan their estates in such a way as to avoid it. This approach can also help ensure estate beneficiaries receive their inheritances in a timely fashion.
How Was Prince’s Estate Divided?
The Prince estate was divided equally among his sister and five half-siblings.
Three of the siblings sold their approximate 50% stake in the estate to the music publishing company Primary Wave in August 2021, according to Forbes.
Primary Wave owns a substantial portion of the artist’s music catalog and other assets due to this sale, although it does not hold a majority stake. The music publishing company collaborates with Prince Legacy LLC to control and protect the artist’s music catalog.
Prince Legacy LLC holds a majority stake in Prince’s estate. As previously stated, it was established by Prince’s former business advisers McMillan and Spicer, who have a 10% stake in the company. The remaining portion of the company is owned by the three half-siblings of Prince who did not sell their shares of his estate.
Who Is in Charge of Prince’s Estate?
Currently, both Primary Wave and Prince Legacy LLC oversee the estate of Prince, with each owning around 50% of it.
Prince Legacy LLC owns a slightly larger share of Prince’s estate than Primary Wave, making it the majority stakeholder.
Primary Wave is not involved in the lawsuit brought by McMillan and Spicer.
Was the Prince Estate Settled?
An estate typically isn’t considered “settled” until all its debts have been paid, disputes surrounding it have been resolved, and its assets have been distributed to the heirs or beneficiaries who are entitled to them. Therefore, the estate of Prince is not yet settled.
Prince’s estate has remained open for much longer than typical estates. In California, for instance, most estates must be settled within one year from the date probate is opened. While factors such as complex assets and will contests can delay estate administration, it is rare for an estate to remain open for over six years, like Prince’s has.
There are several reasons for this extended administration. First, Prince left no will or estate planning documents to guide the distribution of his assets. Second, the estate has been mired in legal disputes since the artist’s death, as his heirs could not agree on a distribution plan. Third, decisions regarding the estate cannot be made unilaterally since two different companies own roughly equal portions of it.
Currently, the portion of the estate owned by Prince Legacy LLC is involved in yet another dispute that has the potential to further prolong settlement of the estate indefinitely.
What Is Happening With Prince’s Estate Currently?
The current dispute surrounding Prince’s estate primarily concerns the actions of Prince’s half-sister, Sharon Nelson, although Prince’s half-sister, Norrine Nelson, Prince’s niece, Breanna Nelson, and Prince’s nephew, Allen Nelson, also have been named as defendants in the lawsuit.
According to Rolling Stone, Sharon Nelson had hoped to co-manage Prince Legacy LLC with McMillan and Spicer, who founded the company. However, her siblings rejected this proposal. Ultimately, Sharon acquiesced, agreeing to allow McMillan and Spicer full management authority over the company.
As time went on, Sharon began to regret her decision to cede full management authority to the duo, so she gradually started to take on a managerial role. For example, Rolling Stone reports that she attempted, but failed, to replace the entire staff of Paisley Park Museum, Prince’s former home and recording studio, with a staff she had handpicked.
Later, she called several meetings, rounding up support from her siblings to execute an amendment to the terms of the LLC that effectively would oust McMillian and Spicer as managers of the company.
In response to this turn of events, McMillan and Spicer brought a lawsuit seeking to have the amendment that effectively cut them out of the business invalidated. In addition, the lawsuit was seeking a ruling that the defendants breached their covenant of good faith and fair dealing, as well as the terms of the LLC agreement, by attempting to remove them as managers of the LLC.
A covenant of good faith and fair dealing generally is implied in most contracts, even if not explicitly stated. It ensures the parties will act justly and honestly with one another so the purpose of the contract is not undermined.
By meeting behind McMillan’s and Spicer’s backs to push through an amendment that would oust them from the company, it could be argued that the defendants were in violation of this covenant.
The judge agreed with at least some aspects of McMillan and Spicer’s lawsuit, which is why she granted summary judgment in their favor. A motion for summary judgment requests that the court issue a decision without proceeding to a full trial, arguing that there are no disputed material facts and that the party filing the motion is entitled to a judgment as a matter of law.
The resulting court order ensured the original terms of the Prince Legacy LLC agreement would remain intact and that McMillian and Spicer would remain managers of the company.
In this instance, the court agreed with McMillan and Spicer that the terms of the LLC could not have been lawfully amended by the defendants without authorization.
Though the defendants argued that all the allegations brought against them should be dismissed on various grounds, the judge disagreed, setting the stage for further litigation and possibly even a trial.
Not only would installing any of the defendants as managers of the LLC be in violation of the company’s terms, but it could be massively damaging to the LLC’s mission to preserve and protect Prince’s legacy, according to McMillan and Spicer.
“The Individual defendants lack any business and management experience, have no experience in the music and entertainment industries, and have no experience negotiating and managing high-level deals in the entertainment industry,” the duo writes in the complaint, obtained by Billboard. “They have a documented history of infighting. Based on the amount and complexity of the work that Prince Legacy is involved with, they are simply not capable of stepping in and managing its business.”
Although McMillan and Spicer have a 10% financial interest in approximately 50% of Prince’s estate, which is not insignificant, their lawsuit seeks to protect Prince Legacy LLC, not just their own financial interests in the company. As a result, if the case goes to trial and they win, it’s possible they’ll be able to recoup their legal costs from the defendants.
Netflix Prince Documentary Canceled
Amid this latest dispute surrounding Prince’s estate, the six-part documentary series on the artist’s life, which was set to air on Netflix, is “dead in the water,” NME reports.
The cancellation is attributed to the estate’s concerns that parts of the documentary were sensationalized or factually incorrect. Consequently, the estate refused to license Prince’s music for use in the series.
Without Prince’s music, there is no series. While Netflix hopes to strike an agreement with the estate surrounding the documentary, no deal has been reached yet.
Takeaway: What to Learn From Prince’s Estate Battle
Creating an estate plan with help from a qualified attorney doesn’t always prevent estate disputes, but it does significantly reduce the likelihood of them occurring.
Prince not only had a sizable estate, but a complex one. While it is a good idea for everyone to have an estate plan, it is especially crucial for individuals with substantial or complicated assets.
When a person fails to create an estate plan, not only do they lose control over how and to whom their assets will be distributed after their death, but they leave behind a major headache for their loved ones, who generally will have to spend their money and time to settle their deceased family member’s estate.
“What is happening with Prince’s estate is truly unfortunate,” says Roee Kaufman, a partner at Keystone. “For six years, his loved ones have been caught up in seemingly endless court battles, many of which might have been avoided if Prince had left behind a will. Moreover, a larger portion of his assets could have been available to his heirs, as fewer funds would have been spent on legal fees.”
As you can see, creating an estate plan is extremely important. It’s a small investment of time and money that can pay off in a big way down the road.
Have questions about a will or trust? Our lawyers are standing by to help.
Keystone’s probate attorneys dedicate their practice exclusively to probate litigation and administration. As such, they cannot help you create an estate plan. They, however, would be more than happy to recommend a skilled estate planning attorney if that is something you wish to do.
On the other hand, if you have a probate issue, such as a trust or will dispute or property dispute, our talented team of attorneys is eager to help. Our attorneys are experienced with complex and simple estates and trusts and can assist you with finding solutions to your legal issues.
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