Michael Jackson’s children are being blocked from receiving any money from their trust. It comes as the result of a battle between the estate and the IRS that has yet to be completely resolved. Until then, the children must look to their “family allowance” for money.
Problems began in 2021
Michael Jackson had three children: Prince, who is now 27 years old, Paris, who is now 26, and Bigi, who is now 22. Each of them is considered a beneficiary of his trust, while his mother, Katherine, who is now 94 years old, is the sole beneficiary of a sub-trust in his will. However, they currently have been blocked from receiving any money from his trust until the estate and the IRS settle a dispute that has been going on for years now.
After a tax audit, the estate was reportedly “issued a note of deficiency” alleging that the estate had “undervalued its assets.” This led to them owing “$700 million in taxes and penalties.” However, the estate argued against these filings in tax court and won their case back in 2021.
The estate filed another motion
Since then, the estate has filed another motion for the value of Jackson’s music catalog, known as Mijac, to be reconsidered. As the request is still pending, the estates’ value has yet to be finalized for tax purposes. Once the value is determined, the estate and the IRS have to approve the value of the deduction in order for a final ruling to be made.
In the wake of the battle between the estate and the IRS, attorneys have requested that a portion of Jackson’s estate be distributed to the Michael Jackson family trust. However, this request was denied. Executors said that the reason for the denial is because they couldn’t “possibly determine what amount could be safely distributed at this time.”
Executors said “no”
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Instead of moving money into the Michael Jackson family trust, executors suggest that the estate provide for his children and mother through the “family allowance” instead. While this may come across as a bit harsh, a spokesperson for Jackson’s estate made a statement saying that the report is “entirely misleading and wrong.”
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“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.”