Michael Jackson’s three children and mother will not receive any financial benefits from his trust until his estate resolves an ongoing dispute with the tax authorities.
Prince, 27, Paris, 26, and Bigi Jackson, 22, are beneficiaries of the late Billie Jean hitmaker’s trust, while his mother Katherine, 94, is the sole beneficiary of a sub-trust in his will.
But the King of Pop’s children, as well as Katherine, may not receive any money from the trust until the tax dispute is resolved, according to court documents obtained by Peopleand filed on May 28.
The dispute began after an IRS audit of the estate’s federal tax returns. The estate was subsequently issued “a notice of deficiency,” claiming it had “undervalued its assets” and “owed $700 million in taxes and penalties.”
The estate disputed these findings and won a lawsuit in tax court in 2021. However, they have since filed a motion for reconsideration regarding the court’s value of Jackson’s music catalog, known as Mijac (owned by Sony Music), which is still pending. .
Michael Jackson’s three children, Prince, 27, Paris, 26, and Bigi Jackson, 22, will not receive any money from his trust until his estate resolves a dispute with the tax authorities; The trio was spotted in March
The King of Pop’s mother, Katherine, 94, is also banned from receiving money from the trust; She is seen with Michael in 2005
Because the request is still being processed, the tax value of the estate has not yet been definitively determined.
After the value has been determined, the estate and the IRS will need to agree on the value of the deduction before a final judgment can be made.
Amid the ongoing dispute, attorneys requested that part of Michael’s estate be distributed to the family trust.
But the request was denied as the executors argued they “may not be able to determine the amount that can be safely distributed at this time.”
The executors suggested that the estate could provide for Michael’s children and mother through ‘child benefit’.
Born in 1997, Prince is Jackson’s first child with ex-wife Debbie Rowe, 65. His godparents are Macaulay Culkin and Elizabeth Taylor.
The two then welcomed daughter Paris in 1998.
Jackson and Rowe divorced in 1999 and he was given full custody of the children.
The IRS and Jackson’s estate disagree over the value of his assets. The value of Jackson’s catalog of music, known as Mijac, is still pending; Michael pictured in 1990
According to the IRS’s findings, the estate reportedly owes “an additional $700 million in taxes and penalties;” Jackson seen in 2005
This dispute delays any distributions from his trust to his children and mother; Jackson’s children are seen in 2012
Bigi was born through a surrogate mother in 2002 as Prince Michael Jackson II. The identity of the birth mother has not been publicly released.
The recent filing comes months after Sony Music Group completed a deal to buy half of Michael’s music catalog for at least $600 million.
It also comes amid Bigi’s – also known as Blanket – ongoing feud with his grandmother.
In March, Bigi filed legal papers to stop Katherine from using estate funds amid a protracted legal battle with the executors.
It is the latest chapter in a legal battle over the Beat It singer’s estate, almost fifteen years after his death on June 25, 2009 at the age of 50, as a result of an overdose of the surgical anesthetic Propofol.
Although legal documents reviewed by TMZ did not identify the specific issue, recent headlines have indicated that the Man in the Mirror singer’s survivors are resisting attempts by his executors to obtain much of the late artist’s catalog to sell.
Bigi and his grandmother were on the same page in opposing a possible sale, but Bigi was not involved in Katherine’s subsequent appeal against the court’s eventual ruling to allow the executors to continue exploring further options for a sale.
Lawyers for Bigi told the court that he believes the appeal will not be successful and that he does not want to depreciate the value of the estate with expensive legal bills, the outlet reported.
In March, Bigi filed legal papers to stop his grandmother Katherine from using estate funds, amid a protracted legal battle with the executors; Pictured in October 2022
The battle over Jackson’s estate continues almost 15 years after the King of Pop’s death on June 25, 2009, as his mother Katherine (pictured in 2011) seeks an LA court to order the executors of Jackson’s estate to reimburse her for legal fees
Bigi’s legal team asked the court to “use its common sense” in ruling that Katherine be reimbursed for the “reasonable attorney fees” she incurred before appealing the court’s ruling.
Lawyers for Bigi said in court filings last June that Bigi had hoped to keep his position on the case secret, encouraging the court to maintain the confidentiality of certain aspects of the legal dispute.
Bigi “is a very private person and might not have said anything if he knew his words or views could become public,” his lawyers said.
“That in turn would have denied the court the opportunity to hear and consider all aspects of the proposed action.”
In legal documents obtained by Dailymail.com, the two executors of the will, John Branca and John McClain, filed paperwork with the Los Angeles Supreme Court requesting that Katherine be stopped in her pursuit of $561,548 from them due to a legal dispute related with the late Thriller. singer catalogue.
Katherine filed court papers in a motion asking for the six-figure sum, saying she spent the total on legal fees to prevent Branca and McClain from selling her late son’s work.
Last month, the estate announced a partial sale, when Sony bought the rights to half of Jackson’s material for $600 million, despite Katherine’s objections.
Jackson has Prince and Paris (seen in 2022) with ex-wife Debbie Rowe, 65. Bigi was born via a surrogate in 2002. The identity of his biological mother has not been publicly revealed
Jackson – who died in 2009 at the age of 50 from an overdose of the surgical anesthetic Propofol – and Rowe divorced in 1999 and he was given full custody of the children; The exes are seen in France in 1997
Michael’s eldest son Prince said through his legal team that he preferred to keep his position on the situation private.
Attorneys for Prince described him in court filings last June as “a private figure who has never sought or sought attention regarding this specific proposed transaction or, more broadly, the details of his position regarding this transaction.”
They added that “whether an individual beneficiary supports, opposes, or is indifferent to this transaction is information that, if made public, would be likely to adversely impact the ability to complete this transaction or negotiate any other transaction in the future to negotiate/renegotiate. ‘
Michael’s daughter Paris said through her legal team last June that she too was trying to “keep her position in this matter confidential,” citing “a variety of intrapersonal family reasons.”