Aaron Carter's Son Faces More Inheritance Uncertainty as IRS Seeks $461K From Late Singer's Estate

Aaron Carter's four-year-old son faces fresh uncertainty over any future inheritance after the Internal Revenue Service (IRS) lodged a claim for more than $461,000 (roughly £345,000) against the late singer's estate, according to newly filed court documents obtained by TMZ.

The federal agency is seeking payment for what it says are outstanding taxes accumulated across several years, together with penalties and interest.

Carter's only child, Princeton Lyric Carter, known as Prince, whom he shared with former fiancée Melanie Martin, has been identified as the estate's sole beneficiary. However, a Los Angeles judge previously determined that Carter's estate was insolvent, meaning its financial obligations exceeded its available assets.

IRS Demands More Than $461,000

Documents reported by TMZ on Wednesday, 21 October, state that the IRS is pursuing $461,253.54 in unpaid taxes, interest and penalties. The outstanding balances relate to five tax years: 2014, 2018, 2019, 2020 and 2021. The agency has submitted its claim to the court in an attempt to recover the money.

The liability for 2014 reportedly stands at $326.60 (about £245), while the figure associated with 2021 reaches $172,538.70 (approximately £129,000), including additional charges. It remains unclear how much the government could recover because the estate had already been declared insolvent.

Young Son's Inheritance Remains Uncertain

Prince's status as the estate's sole beneficiary does not guarantee that he will receive an inheritance. Outstanding debts and legally enforceable creditor claims generally must be addressed before an estate's remaining assets can be distributed to beneficiaries.

The reported tax demand does not mean Prince personally owes the IRS $461,253.54. Instead, the agency is pursuing Carter's estate. The eventual financial consequences for his son depend on the assets available, the treatment of the claim and any applicable legal protections. No final recovery amount has been publicly established in reporting.

Family Dispute Over Singer's Assets

Earlier this year, Carter's mother, Jane Schneck, reportedly opposed efforts to close the estate, arguing that its administrator had failed to properly assess the value of royalties from her son's music.

Schneck also questioned withdrawals totalling $24,530 (approximately £18,400) from Carter's accounts, alleging that Martin was not entitled to the money. Martin disputed the allegations, saying Schneck had misunderstood Carter's financial arrangements and explaining that she and the singer shared bank accounts.

In April, a judge reportedly rejected Schneck's objection to closing the estate and approved the transfer of its remaining non-cash assets.

Wrongful Death Settlement Adds Another Financial Question

Separate legal proceedings have also involved Prince's financial interests. In October 2023, Martin filed a wrongful death lawsuit on her son's behalf, alleging that medical professionals improperly prescribed medications to Carter and that pharmacies improperly dispensed them, contributing to his death.

In May 2026, court filings revealed that a psychiatrist and a mental health clinic had agreed to a confidential settlement. The agreement resolved claims against those defendants, although other parties remained involved in the litigation at the time.

The amount was not disclosed, and available reporting does not establish whether those proceeds would be affected by the newly reported tax demand.