Estate disputes of the rich and famous: Howard Hughes and Prince
When wealthy celebrities pass away without clear succession plans, the aftermath can lead to complex legal battles. Two notable cases that highlight the importance of proper estate planning are those of Howard Hughes and Prince.
Howard Hughes, the eccentric billionaire aviator and businessman, died in 1976 aboard a private plane en route to Houston. His death sparked what would become one of the most infamous estate battles in American history. The reclusive Hughes, whose net worth was estimated at $2.5 billion at the time (equivalent to roughly $14 billion today), died without leaving a valid will.
In the aftermath, several competing claims emerged. The most notorious was the "Mormon Will," which mysteriously appeared at the headquarters of the Church of Jesus Christ of Latter-day Saints in Salt Lake City. This document purported to leave a significant portion of Hughes's wealth to a gas station owner named Melvin Dummar, who claimed to have once given Hughes a ride through the Nevada desert. After a highly publicized trial, the will was declared a forgery.
The ensuing legal battle involved hundreds of would-be heirs, half a dozen fake wives, and many bogus children. The initial probate took seven years to resolve. Eventually, Hughes's fortune was divided among a group of cousins, though a significant portion also went to the Howard Hughes Medical Institute, which he had established in 1953. The legal and administrative fees for the Hughes estate are believed to be in the hundreds of millions of dollars, and the final settlement of the estate did not occur until 2010.
More recently, the 2016 death of music icon Prince created another high-profile estate dispute. The "Purple Rain" singer died without a will, leaving behind an estate valued at around $156 million. This oversight led to a six-year legal battle that cost tens of millions in legal and administrative fees.
Prince's estate was particularly complicated due to his vast musical catalog, unreleased recordings, and Paisley Park property. The Minnesota probate court had to determine the rightful heirs among his six living siblings. Making matters more complex, more than 45 people came forward claiming to be his children, siblings, or other relatives.
The situation was further complicated by disagreements over the estate's valuation. The IRS initially valued it at $163.2 million, while the estate's administrator, Comerica Bank & Trust, placed its value at $82.3 million. This discrepancy led to a separate battle over estate taxes.
Finally, in 2022, after numerous court hearings and millions in legal fees, Prince's estate was distributed among his three oldest half-siblings and the publishing company Primary Wave, which had bought out the interests of his other heirs. The company now controls about half of the estate.
Both cases underscore several crucial lessons about estate planning. First, they demonstrate the importance of having a clear, legally valid will or living trust. Second, they show how the absence of proper planning can lead to prolonged legal battles that significantly diminish the estate's value through legal fees and administrative costs.
These disputes also highlight how complex estates can become when they involve intellectual property rights, multiple properties, and business interests. In Prince's case, the management of his musical legacy and unreleased works added layers of complexity to the proceedings.
The cases of Hughes and Prince serve as cautionary tales about the importance of proper estate planning — and not just for wealthy celebrities. While their estates were worth hundreds of millions, the fundamental issues — determining rightful heirs, valuing assets, and honoring the deceased's wishes — apply to estates of any size. Their stories continue to influence estate planning discussions and serve as powerful examples of why having a clear succession plan is crucial.
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Robert J. Green is an Elder Law, Trust, Estate, Probate, & Guardianship Attorney and the owner of Kootenai Law Group, PLLC in Coeur d’Alene. If you have questions about estate planning, probates, wills, trusts, powers of attorney, guardianships, Medicaid planning, or VA Benefit planning, contact Robert at 208-765-6555, Robert@KootenaiLaw.com, or visit www.KootenaiLaw.com.
This has been presented as general information and not as legal advice. Do not engage in legal decision-making without the advice of a competent attorney after discussion of your specific circumstances.