Aaron Carter's Estate Declared Insolvent Amid Growing Tax Debts

Aaron Carter's estate has been officially declared insolvent, with no remaining assets to settle his outstanding debts, according to court documents obtained by In Touch. The late pop star, who passed away at the age of 34 on November 5, 2022, left behind significant financial liabilities that continue to grow due to interest and penalties.

Details of Aaron Carter’s Financial Struggles

The administrator of Aaron’s estate reported to the court that the State of California filed a creditor’s claim for $77,312. Additionally, the IRS revealed tax debts of $46,116 for 2018 and $118,000 for 2021. Combined, these debts far exceeded the estate’s assets, which totaled $810,547 at the time of his death.

While some claims, such as $2,800 owed to Wells Fargo, were settled, others remain unpaid due to insufficient funds. Notably, a $19,000 claim by another company was rejected for being filed too late.

Assets and Beneficiaries

The estate’s primary beneficiary is Aaron’s son, Princeton Lyric Carter. However, due to the financial situation, there is little left to transfer to him. Over time, attorney fees and debt repayments have significantly reduced the estate’s value.

The estate administrator attempted to handle Aaron's property, including his car collection. However, complications arose as some vehicles, like a 2021 Cadillac Escalade, were leased and repossessed, while others, such as a 2012 Bentley Continental, were registered under third parties.

Legal and Financial Actions

The estate sold off some assets, including Aaron’s guns, but no profit was made. A property auction yielded $14,000, and the sale of Aaron’s home generated only a $7,000 profit.

Additionally, Aaron’s brother, Nick Carter, issued a subpoena seeking access to electronics owned by the late singer. The purpose behind this request remains unclear.

Ongoing Legal Battle

Aaron’s ex-fiancée, Melanie Martin, has filed a wrongful death lawsuit on behalf of their son, alleging negligence by Aaron’s doctors. The doctors have denied all allegations.

Cause of Death and Legacy

Aaron Carter was found deceased in his Lancaster, California, home. An autopsy confirmed his death was caused by drowning after inhaling difluoroethane and consuming alprazolam.

While his music career brought him fame, the financial struggles and tragic circumstances surrounding his death have cast a shadow over his legacy. His estate's insolvency highlights the challenges faced in settling his affairs and providing for his young son.