Michael Jackson's family cut off from trust amid estate dispute
The late pop icon Michael Jackson's children, Prince, Paris, and Bigi, along with his mother Katherine, have been temporarily denied access to his trust fund. This decision is a result of an ongoing dispute between Jackson's estate and the Internal Revenue Service (IRS) over the value of the estate. The disagreement began after a tax audit alleged that the estate had "undervalued its assets."
Estate dispute resulted in additional tax liabilities
The tax audit concluded that Jackson's estate reportedly owes an additional "$700M in taxes and penalties." In response, the estate contested these findings in tax court and won the case in 2021. However, a motion has since been filed by the estate for reconsideration of the value of Jackson's music catalog, known as Mijac. This request is still pending, leaving the final value of the estate undetermined for tax purposes.
Family trust distribution denied amid estate valuation dispute
During the ongoing proceedings, attorneys requested a portion of Jackson's estate be distributed to his family trust. However, executors denied this request, arguing they could not "possibly determine what amount could be safely distributed at this time." They suggested that Jackson's children and mother should instead be provided for through a "family allowance." This predicament has come months after Sony Music bought half of MJ's publishing and recorded masters' catalog for around $600M in February.
