Clearing the Queen of Soul’s tax debts could clear the way for her four sons to finally take over her post-death affairs and fully benefit from revenues flowing into her estate — which could be millions of dollars.
The Detroit Free Press reports in its recent article entitled “Aretha Franklin estate says $7.8 million IRS bill is paid; could spell windfall for sons” reports that Franklin’s tax burden had been an immovable hurdle as her heirs sorted out other estate matters — sometimes combatively — in Oakland County Probate Court following her 2018 death.
The IRS debt prevented the sons from receiving money, even while the late star’s music and movie projects generated big revenue in her name. The remaining tax liability was paid off in June with delivery of a cashier’s check to the IRS.
The IRS said that the singer’s estate had nearly $8 million in unpaid taxes, penalties and interest that had piled up during the previous seven years. The estate at last struck a deal with the IRS in April 2021 with an accelerated payoff schedule that also set up limited but regular payments to Franklin’s sons.
The IRS deal earmarked 45% of incoming Aretha Franklin revenue to pay down the standing tax balance. Another 40% was directed to an escrow account to handle taxes on newly generated income.
With the tax debt now purportedly off its back, the estate contends that most of the incoming cash should get distributed equally among the four sons each month. From that point, income tax obligations would be on each individual. Oakland County (MI) Probate Judge Jennifer Callaghan would have to approve the request.
In the meantime, there’s still the issue of multiple wills that were apparently signed by Franklin. That includes three handwritten documents discovered in her home in 2019.
A fourth will draft suddenly was discovered last year — a typed document prepared by a Troy law firm in 2017 but left unsigned by the star.
The documents contain conflicting instructions about Franklin’s wishes for her estate, including which heirs were to get what, and their emergence exacerbated tensions among sons Clarence, Edward, Teddy and Kecalf.
A trial to clear up the situation was planned for 2020 but was delayed due to the pandemic.
Reference: Detroit Free Press (July 11, 2022) “Aretha Franklin estate says $7.8 million IRS bill is paid; could spell windfall for sons”