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Michael Jackson’s family is struggling with financial difficulties as a result of an ongoing dispute between the IRS and his estate, according to court documents obtained by People on Thursday, May 30.
The “King of Pop ” who died in June 2009 from acute propofol intoxication, left his three kids, Prince, Paris, and Bigi Jackson, alongside the late popstar’s mother, Katherine, as beneficiaries. The whole clan have been suspended from receiving his trust fund money.
A “a note of deficiency” was issued toward the estate, which declared it owed “$700 million in taxes” and “undervalued assets.” Reported in the documents, the estate won the battle in court in 2021. Shortly after the successful outcome, the estate filed to reconsider the value of the “Beat It” singer’s music catalog – known as Mijac – but remains pending.
Once the total worth of the estate is revealed, the deduction then would be made. According to the filing, “(The Trust) requires that 20 percent of the estate ‘as valued for federal estate tax purposes’ be distributed to charity before the remaining assets of the estate can be distributed to sub-trusts.”
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Though they have no access to that fund, executors are suggesting that the estate provide for the Jackson family through “family allowance.”
ET also obtained court documents that state, “It seems clear to (Katherine) that the Executors are holding all of the assets in the Estate in order to keep control over them, and to avoid the more liberal distribution of requirements of the Trust…There can be little question that the Court has jurisdiction to instruct the Executors to pay (Katherine’s) fees from the Estate.”
Katherine’s bold move to use part of the money from the estate to pay the bills for an undisclosed court battle reportedly led to conflict with the Moonwalker’s youngest child, Bigi.
Despite the family facing a downfall in their life at the moment, the eldest son of the singer, Prince noted that his late father is a “supportive” figure to him and his family during an interview with Good Morning America in 2017, saying, “I think that he (Michael Jackson) will always be the supporting figure to me and my siblings and support us in all the endeavors we try.”
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