The estate for the late musical icon Whitney Houston, who passed away in 2012 after drowning in her bathtub at a Beverly Hills hotel, was initially ordered to pay $11 million to the IRS after it was claimed they had underreported the singer’s royalties, residuals, and value of her image by $22.6 million after her death.
The Daily Mail’s recent article, “Whitney Houston's estate reaches $2million settlement with IRS” reports that court documents filed last week show that the estate reached a settlement with the IRS where it agreed to pay the agency a total of $2,275,366.
This settlement comes after the singer’s estate claimed the IRS was incorrect in their value determination, and alleged that her music royalties, digital performance royalties, motion picture and TV residuals, and publicity rights—which they valued at $11.7 million—had been overvalued.
The parties were scheduled for a court trial to argue about the details of their lawsuit in February. However, that’s been cancelled with the news of the out-of-court settlement.
There’s now no need for the hearing.
Meanwhile, the royalties from the I Will Always Love You hitmaker’s extensive collection of hits are set to keep soaring. In November, some previously unreleased tracks from Houston were made public to mark the 25th anniversary of The Bodyguard.
The collection, Whitney Houston - I Wish You Love: More From The Bodyguard, features several unheard pieces from the late singer's legendary career. The release marks the 25th anniversary of The Bodyguard: Original Soundtrack Album, which she co-executive produced with Clive Davis.
That Grammy Award-winning album was the first record to sell more than one million copies in a single week. It has since sold more than 45 million across the world. It's the top-selling soundtrack of all time. The movie, The Bodyguard, was Houston’s big screen debut.
Reference: Daily Mail (January 4, 2018) “Whitney Houston's estate reaches $2million settlement with IRS”
If you need help assembling your Estate Plan, give our office a call for a FREE Consultation, 801.438.7120!