The children of the late Michael Jackson, Prince, Paris, and Bigi Jackson, along with their grandmother Katherine, have hit a roadblock in receiving any inheritance from the King of Pop’s trust. This delay is a result of the ongoing dispute between his estate and the IRS, which has been dragging on for years.
The estate faced a significant setback when it was slapped with a massive tax bill of $700 million in taxes and penalties after allegedly undervaluing its assets. This prompted a heated battle in tax court, which the estate managed to win in 2021. However, the dust is far from settled as the estate is now seeking a reassessment of the value of Michael’s music catalog, known as Mijac.
Uncertain Future
Until the value of the estate is determined and approved by both the estate and the IRS, Michael Jackson’s children and mother are left in financial limbo. Executors have refused to distribute any funds to the family trust at this time, citing the inability to accurately ascertain a safe amount for distribution. Instead, they have suggested utilizing the “family allowance” to provide for the family members.
Amidst all these financial woes, Sony Music Group struck a deal earlier this year to purchase half of Michael Jackson’s music catalog for a staggering $600 million. This deal adds another layer of complexity to the already convoluted financial situation surrounding the late pop icon’s estate.
Adding to the mix of legal battles, Bigi Jackson found himself in a conflict with his grandmother Katherine after she attempted to use funds from the estate to cover legal fees for an undisclosed court case. This internal family feud only serves to complicate matters further and highlights the strain that financial disputes can exert on family relationships.
The future financial outlook for Michael Jackson’s children remains uncertain as the estate and the IRS continue to grapple with the valuation of assets and tax obligations. The drawn-out nature of these disputes underscores the complexities involved in managing the legacy and wealth of a cultural icon like Michael Jackson. Until a resolution is reached, the financial security of his heirs hangs in the balance, emphasizing the importance of meticulous estate planning and financial management.