> From: "Roach, Bill" <[log in to unmask] <mailto:[log in to unmask]>>
> Subject: Re: Vaults in the news - RM advice to the estate
> Date: May 3, 2016 at 4:41:37 PM EDT
> 
> 
>>> I was very surprised that the vault was opened so quickly by Bremer Trust, as it was on private property, no clear right of authority to open the vaults had been determined; and, since the artist was very dedicated to privacy and security, I am shocked that this occurred immediately.<<
> 
> The Bremer Trust has the authority, they are the court appointed Special Administrator of the estate.  The appointment of the Special Administrator was done at the request of Prince's sister.  The Special Administrator has the responsibility to manage and supervise the assets of the estate.
> 
> Bill Roach, CRM

In our large family, we have had several deaths; and in case there was a will.  The process of opening safe deposit boxes and setting up the estate on normal middle class families took weeks to establish.  Yet here, in an estate worth $100 to $300 million they jump in and immediately open a vault, when there are many potential issues that might still arise. This is not just a individual, but a huge business enterprise and the disputes that will arise via tax consequences; and such. (federal and state will be arguing with the entity that controls the estate for some time possibly decades over what the value of the vault music collection is. ) This would seem to require a controlled approach to handling these documents and electronic records that represent over 100 original albums of material in a very measured and precise way.  Is that not a perfect records management issue?

The Internet articles refer to Prince’s vault as mythical but it was a real vault filled with a massive collection.   Would a $300 million dollar corporation move this quickly through the process?  Are there not real records management issues at stake here?  That is what I thought was interesting.  

Bremer Trust might have exposed the estate to a Pandora’s box of litigation by opening the vault’s music collection ( or music box if you will ) to purview by taxing authorities without first determining a method of valuation that the taxing authorities will contractually accept?  Obviously the government will see a valuation of $300 million, or maybe much more as it is in their best interest to place the highest valuation and then the family will be stuck with that valuation unless they spend a great deal in court to establish a different value.  The family might want to be taxed at a value of $100 million but whatever the state sets, establishes a value that creates legal liability.  Bremer Trust might have exposed the family to litigation and as executor this might benefit them as this issue will  drag on for decades.  The Judge that authorized the opening of the vault might have had the interests of the state in mind and not been impartial in this rush to throw open the vault.  Now these records are floating around and security for these documents is critical at this point in time. This is  a records management issue of major consequence at this moment.

The ability to market this music collection might not be as effective without Prince there to promote it; ( alas it is probably only worth $25 million)  or maybe it is much more valuable because artists work tend to go up when there is no possibility of there ever being any new art added to the collection. ( Wahoo! the Federal and State authorities will tack on a blue of $500 million and immediately demand taxes on it to release the estate.)   A good records manager could make the case here that the records must be analyzed and valued outside the State’s purview by recognized music authorities but absolute records management is the key to this resolution.   Too bad Prince did not have a records manager.  Maybe other great artists should enlist the help of a records manager to protect their estates.  (Since others have vaults, they do recognize an increasing archival value to their work.)

I predict someone will outline these issues to the family and step up to protect the family interests before the State locks it in a death spiral.  Bremer Trust would seem to also have exposure if they are not very precise in handling these records. 

At the very least documenting the elements of the collection, establishing a protocol for protecting the records from exposure and theft by other music entities. Who even knows what truly exists in the collection?  I have seen notes scribbled on napkins outlining the elements of a song and it theme become very valuable.  Without a professional in this process, the value could be greatly diminished.


Hugh Smith
FIRELOCK Fireproof Modular Vaults
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