Tax Implications for Aretha Franklin’s Estate

After the news of the passing of soul singer Aretha Franklin, headlines were soon dominated by the surprising realization that she did not leave any estate planning documentation. Her four sons filed in Oakland County Probate Court on Tuesday with the acknowledgement that their late mother had no will, and her niece, Sabrina Owens, asked to be appointed as the estimated $80 million estate’s personal representative. Under Michigan law, the assets of an unmarried person who dies without a will are divided equally among any children.

At this point it does not seem like the four sons have any conflicting views, though any family or any other conflict may appear later as extended relations or creditors materialize and seek a portion of her estate. Aretha Franklin’s entertainment lawyer Don Wilson from Los Angeles commented, “I was after her for a number of years to do a trust. It would have expedited things and kept them out of probate, and kept things private.”

The complete lack of any form of estate or wealth planning may strike her estate severely. The estate passes the exemption threshold for gift and estate tax under the Tax Cuts and Jobs Act and thus her heirs will likely owe a good chunk to Uncle Sam.

See David H. Lenok, Queen of Soul Aretha Franklin Died Without a Will, Wealth Management, August 21, 2018; see also Brian McCollum and John Wisely, Aretha Franklin Left No Will or Trust, Court Records Show, Detroit Free Press, August 21, 2018.

Special thanks to Elizabeth R. Carter (A.N. Yiannopoulos Professor of Law, LSU) for bringing this article to my attention.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.