That the recently departed musician Prince did not have an estate plan has left his estate in a bind. It may need to pay up to half the total value of the estate to the federal government and the state of Minnesota to cover estate taxes.
Unfortunately, to make matters worse, the bulk of the estate is not in liquid assets. That means the estate may need to sell off some assets to cover the estate tax bill.
One way of raising money quickly would be to sell the rights to Prince's hundreds of hours of unreleased recordings. Rapper Jay Z reportedly offered the estate $40 million for the rights to the recordings. That offer has been rejected according to TMZ in "Prince Estate to Jay Z No Deal For His Recordings ... Issues with Tidal Deal Too."
While it is not clear why the estate rejected this offer, there appears to be an upset with Jay Z over issues with his music streaming service Tidal. The estate is accusing Jay Z of releasing 15 Prince albums on the service after Prince's death without permission. It also accuses Tidal of not paying $750,000 that was owed for a deal that Prince and Jay Z negotiated to have Prince's last album released on the streaming service.
This could be an indication that the estate is preparing a lawsuit against Jay Z.
With the rejection of the deal to purchase the music rights, it remains uncertain how the estate plans to come up with the funds to pay the estate taxes it owes.
Reference: TMZ (Nov. 13, 2016) "Prince Estate to Jay Z No Deal For His Recordings ... Issues with Tidal Deal Too."