Prince‘s estate is getting hit with a hefty tax bill that could end up taking half of his estimated $250 million fortune – and force the early sale of some of the vast troves of unreleased music that the Purple One had locked up in his vault, the trustee for the estate revealed.
Doug Peterson, an attorney for Bremer Trust, the company chosen to oversee the estate, told a Carver County judge on Tuesday that taxes equal to half of the cash value of the estate are due to the state of Minnesota and the federal government, according to NBC News.
He noted that if Prince didn’t have the allotted amount accessible before his April 21st death, many of his non-cash assets would have to be sold to meet a likely January 21 fee deadline – significantly decreasing the estate’s reported $250 million value.
“The challenge we face is to spin yarn into gold under time pressure,” he explained. “The point is this is a dynamic, wide-ranging business, and we must keep on schedule to make the deadline. If we do not, the government will not wait. They will have a fire sale, and that is not in the best interests of anyone.”
Some of the items maybe on the chopping block? The unreleased songs in Prince’s vault, and even Prince’s Paisley Park compound, according to NBC.
Peterson asked to speed up the negotiation process on a number of contracts, some regarding the singer’s intellectual property and others over Paisley Park, according to the Star-Tribune. He doesn’t want the multiple paternity cases against the estate to interfere.
The lawyer for Prince’s sister Tyka Nelson was also on hand for the meeting, as well as an attorney for the singer’s half-siblings. The lawyers must submit arguments in the case by 12 p.m. on Wednesday, with plans to issue an order the following morning, NBC reported.
Estate attorney Jeffrey P. Scott, partner at St. Paul, Minnesota, firm Jeffrey P. Scott & Associates previously told PEOPLE that an estate tax is applied to anything over $1.6 million in Minnesota, and, at the federal level, to any estate over $5.4 million.”
The revelation comes not long after those claiming to be heirs to Prince’s estate were ordered by Bremer to answer questions under oath in order to prove paternity. The alleged heirs will also have to provide a copy of their birth certificate. Final rulings on estate heirs is currently set for June 27. Several people have filed paternity claims against the estate, including a man who claims to be Prince’s illegitimate son.
Prince’s cause of death was confirmed as an opioid overdose last week. The “Purple Rain” singer died from a self-administered Fentanyl overdose.