thanks for that. so there are a few answers in it.
but i would like to make an example.
prince is 40, katherine is still alive. the estate gross value is 100 million dollars. the payment is every year.
the will says 20% of the gross value for the kids, katherine, and charity.
thats 20 million dollars. then pay the taxes,... i say 5 million dollars for this... thats 15 million.
the kids would get 6 million (40%, 2 million for each) and katherine also 6 million (40%), and 4 millon goes to charity (20%)?
but, this payment is only one time? but they can, for example, let pay out 1 million dollar each year?
or does they make each year a new calculation from the gross value?
there's a million things that are wrong with that example. when 40 they are getting principal not only income. Estate tax happens only once when the assets is transferred from one person to the beneficiaries. the 20% of the gross value is only for the charity not the kids and katherine. katherine doesn't get a lump sum. you have two payments to charity in your example and so on. again you are confusing yourself.
let me try something else. let's imagine that Michael had a really simple Estate. Let's assume he had only $200 Million in cash in his accounts.
Estate would be required to make a 20% of 200 M = $40 Million payment to charity.
Then they would be required to pay the Estate taxes on the remaining $160 Million. Let's say the Estate tax amount is 30% which is $48 Million.
Then
the principal remaining would be $112 Million. This would be divided into two trusts $56 Million in kids name, $56 Million in Katherine's name.
Now imagine that this principal would bring $15 Million
net income every year. Until kids are 21 they would get allowance and the remaining would be added to the principal. Assume that they (katherine and kids) were each given $1 M for yearly expenses and the rest is put the the principal (15 / 2 = 7.5 M , 7,5-3 = 4.5 M is added to the kids trust to make it $60.5 M , $6.5 M added to Katherine's trust principal). This will continue until each kids turn 21, so the addition of the unused money (if any) would increase the principal. (Trust says any undistributed income should be added to the principal)
Now imagine that Prince has turned 21. The net income is $15 M. He would either get $2.5 M (if Katherine is alive) or $5 M (if Katherine is dead) yearly.
Now imagine that Prince turns 30 and the principal of each trust has increased to $90 Million (from the original $56) due to adding the undistributed income to it and as this is 15 years later and given Katherine's age she'll probably be dead. So I'll assume her trust - let's say another $90 Million - is now added to the kids trust bringing the principal amount to $180 M.
Which makes each child's share of the principal $60 Million. So according to the trust Prince gets $20 Million when 30, another $20 M when 35 and another $20 Million when 40 years old.
Now again this is a really simplified cash only example. We don't know the Estate gross value, we don't know how the charity payments would be handled, we don't know tax amount. Also some principal assets - such as the catalogs - would probably not be liquidated and paid in cash, they would probably just get ownership shares in their name. In other words for example if Sony/ATV is worth $600 Million they wouldn't get it as $200 M in cash, they would get it as 1/3 of ownership of it.