The recent court documents obtained by People shed light on the fact that Michael Jackson’s children, Prince, Paris, and Bigi Jackson, along with his mother, Katherine, have been cut off from receiving money from his trust until his estate and the IRS settle a long-standing dispute. This dispute revolves around the alleged undervaluation of the estate’s assets, leading to a deficiency note of $700 million in taxes and penalties.
The estate, following a tax audit, contested the IRS’s findings in tax court and emerged victorious in 2021. However, the estate has since filed a motion for the reconsideration of the value of Michael Jackson’s music catalog, known as Mijac, which is still pending. Until the estate’s value is finalized for tax purposes, the distribution of assets remains in limbo.
The estate and the IRS must agree on the estate’s value and deductions before any distribution can take place. Despite requests for a portion of the estate to be distributed to the Michael Jackson family trust, the request was denied by the executors. They argued that the current circumstances make it impossible to determine a safe amount for distribution at this time.
In light of the ongoing legal battles, the executors suggested providing for Michael Jackson’s children and mother through the family allowance instead of direct distributions from the estate. This alternative method ensures that the family’s financial needs are met while the estate’s value remains unsettled.
Apart from the financial issues surrounding the estate, Bigi Jackson has found himself entangled in a separate dispute with his grandmother, Katherine. This dispute arose when Katherine attempted to use funds from the estate to cover legal fees for an undisclosed court battle. The complexities of the legal battles surrounding Michael Jackson’s estate highlight the importance of thorough financial planning and management even after one’s passing.
Overall, the delay in distributing funds to Michael Jackson’s children and mother underscores the necessity of proper estate valuation and tax compliance. As the legal battles continue, it remains to be seen how the estate’s value will be ultimately determined and how the financial interests of the family members will be safeguarded in the process.