Michael Jackson’s kids blocked from receiving money from trust until estate and IRS settle dispute
Michael Jackson’s kids have been blocked from receiving money from his trust until his estate and IRS settle a years-long dispute, according to court documents obtained by multiple outlets Thursday.
Prince, 27, Paris, 26, and Bigi Jackson, 22, are beneficiaries of his trust while the late King of Pop’s mother, Katherine, 94, is the sole beneficiary of a sub trust in his will.
Following a tax audit, the estate was reportedly “issued a note of deficiency” alleging the estate “undervalued its assets” and owed “$700 million in taxes and penalties.”
According to the filing, the estate argued against the findings in tax court and won in 2021.
The estate has since filed a motion for the value of the “Thriller” singer’s music catalog, known as Mijac, to be reconsidered.
The request is still pending, which means the estate’s value has yet to be finalized for tax purposes.
After the value of the estate is determined, the estate and IRS will have to approve the value of the deduction in order for the final ruling to be made, the documents state.
As the battle continues, attorneys requested a portion of Michael’s estate be distributed to the Michael Jackson family trust, according to People.
However, per the docs, the request was denied because executors argued that they can’t “possibly determine what amount could be safely distributed at this time.”
In the meantime, executors suggested that the estate provide for Michael’s children and mother through the “family allowance,” per the docs.
A spokesperson for Jackson’s estate told Page Six in a statement that the report is “entirely misleading and wrong.”
“In annual reports provided to the probate court, which are publicly available, anyone can see that the Estate provides Michael’s Mother and children with very substantial amounts of money to support them,” the spokesperson said. “The Estate has a very cooperative relationship with Michael’s children and whenever they need anything, the Estate works with them to ensure that they are very well taken care of, just as Michael would have wanted.”
This new development comes months after Sony Music Group finalized a deal in February to purchase half of Michael’s music catalog for at least $600 million.
Meanwhile, Bigi has also been involved in an ongoing dispute with his grandmother Katherine after she attempted to use money from the estate to pay legal fees for an undisclosed court battle.
