Michael Jackson’s children and mother are not going to taste the fruits of his immense fortune, at least in the short term. Prince, 27, Paris, 26, and Bigi, 22, as well as Katherine, 94, cannot receive money from his trust until his will and the IRS (the US agency in charge of tax collection and compliance with tax laws) resolve a dispute that has been pending for years, As revealed by new court documents obtained by People on Thursday, May 30. The reports, filed Tuesday, detail the ongoing case over the king of pop’s estate and explain that the executors of his will have decided that, while legal disputes continue over the value of his estate, his beneficiaries will not They will receive no compensation.
The ongoing legal dispute began when the IRS audited the singer’s federal estate tax return and “issued a deficiency notice,” alleging that the estate had “undervalued his assets” and that he owed “an additional $700 million in taxes.” and fines,” according to the documents. In 2021, the heirs challenged the assessments and won after a tax court trial, but their attorneys have since filed a motion for reconsideration regarding the value of Mijac, Michael’s catalog owned by Sony Music, which remains pending. As a result, the value of the estate has not been determined for tax purposes and the two parties must agree on a deduction value before a judgment can be made.
While that long process is underway, the family’s lawyers have requested that a portion of that estate “remain subject to administration,” while the remaining legal issues are resolved, for distribution to the Michael Jackson heirs’ trust.
However, John Branca and John McClain, the executors of the pop star’s will, rejected the request because they cannot “determine what amount could be safely distributed at this time,” according to the documents obtained by the American media. Additionally, the trust “requires that 20% of the estate (as valued for federal estate tax purposes) be distributed to charities before the remaining assets can be distributed to subtrusts.” [los familiares del cantante]”. Therefore, the reports warn that “a resolution of the dispute is necessary to determine the charitable contribution. Until then, the executors suggest that the estate provide for his children and mother through the family allowance.”
The new clarification comes two months after Katherine responded to her grandson Bigi’s objection to her using funds from Michael’s estate to pay his legal fees in an ongoing dispute with executors over the sale of the singer’s catalog to Sony. In the statement, Katherine alleged that the executors are being too lax with how inheritance money is awarded to her beneficiaries and argued that they could afford to cover the costs she is requesting. She also spoke out against 20% of the estate being donated to charity: “Nothing in the trust requires those payments to be made prior to any preliminary distribution to other beneficiaries.” Katherine herself is not a beneficiary of the estate like the singer’s children, but rather she is the sole beneficiary of a secondary trust in Michael’s will.
The artist’s family has been in a near-constant war over his fortune since his sudden death on June 25, 2009, at age 50. Currently, the main fight of his heirs is against that great commercial agreement signed by the executors with Sony to grant the company half of Jackson’s music catalog for about 600 million dollars. Katherine presented objections to the agreement in court, but in April 2023 a judge rejected them and ruled that the proposal could move forward. She then filed an appeal, which is still ongoing, but she did so without the support of her grandchildren.
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