Michael Jackson’s three children and mother will not receive any financial distributions from his trust until his estate resolves an ongoing dispute with the IRS.
Prince, 27, Paris, 26, and Bigi Jackson, 22, are beneficiaries of late hitmaker Billie Jean’s trust, while their mother Katherine, 94, is the sole beneficiary of a secondary trust in her will.
But the King of Pop’s children, as well as Katherine, have been prohibited from receiving money from the trust until the tax dispute is resolved, according to court documents obtained by Peopleand presented on May 28.
The dispute began after an IRS audit of the estate’s federal tax return. The estate was then “issued a deficiency note” alleging that it “undervalued its assets” and owed “$700 million in taxes and penalties.”
The estate challenged those findings and won a trial in tax court in 2021. However, they have since filed a motion for reconsideration regarding the judicial value of Jackson’s music catalog, known as Mijac (owned by Sony Music), which is still this slope. .
Michael Jackson’s three children, Prince, 27, Paris, 26, and Bigi Jackson, 22, will not receive money from his trust until his estate resolves a dispute with the IRS; The trio seen in March.
The King of Pop’s mother, Katherine, 94, has also been banned from receiving money from the trust; She is seen with Michael in 2005.
Because the application is still pending, the value of the estate has not yet been determined for tax purposes.
Once the value is determined, the estate and the IRS will have to agree on the value of the deduction before a final ruling can be issued.
Amid the ongoing dispute, attorneys requested that a portion of Michael’s estate be distributed to the family trust.
But the request was denied because the executors argued that they cannot “determine what amount could be safely distributed at this time.”
The executors suggested that the estate could support Michael’s children and mother through “family allowance.”
Prince, born in 1997, is Jackson’s first child with his ex-wife Debbie Rowe, 65. His godparents are Macaulay Culkin and Elizabeth Taylor.
The two then welcomed their 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 the musical catalog of Jackson, known as Mijac, is still pending; Michael photographed in 1990
According to the IRS’s findings, the estate allegedly owes “an additional $700 million in taxes and penalties”; Jackson seen in 2005
This dispute is delaying any distribution 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 biological mother has not been publicly revealed.
The recent filing comes months after Sony Music Group finalized a deal to buy half of Michael’s music catalog for at least $600 million.
It also comes amid Bigi, aka Blanket,’s ongoing feud with his grandmother.
In March, Bigi filed legal papers seeking to block Katherine from using estate funds amid a protracted legal battle with the estate’s executors.
It is the latest chapter in a legal battle over the Beat It singer’s estate, nearly 15 years after his death on June 25, 2009, at the age of 50, from an overdose of the surgical anesthetic Propofol.
While legal documents reviewed by TMZ did not identify the specific issue at hand, recent headlines have indicated that the Man in the Mirror singer’s survivors opposed efforts by his estate’s executors to sell off a large portion of the catalog. of the late artist.
Bigi and her grandmother were on the same page in expressing their resistance to a possible sale, but Bigi did not participate in Katherine’s subsequent appeal of the eventual court ruling allowing the executors to continue exploring further options for a sale.
Bigi’s lawyers told the court that he feels the appeal will not be successful and does not want to depreciate the value of the estate with expensive legal bills, the outlet reported.
In March, Bigi filed legal papers seeking to block his grandmother Katherine from using estate funds amid a protracted legal battle with the estate’s executors; Photographed in October 2022.
The battle over Jackson’s estate continues, nearly 15 years after the King of Pop’s death on June 25, 2009, as his mother Katherine (pictured in 2011) seeks to have a Los Angeles court order the executors of the Jackson’s estate to be reimbursed. for legal fees
Bigi’s legal team asked the court to “use its best judgment” in ruling that Katherine be reimbursed for the “reasonable attorney’s fees” she accrued before appealing the court’s ruling.
Bigi’s lawyers said in court papers filed last June that Bigi hoped to keep his position on the matter secret, encouraging the court to keep certain aspects of the legal dispute confidential.
Bigi “is a very private person and might not have said anything if he had known that his words or positions could become public,” his lawyers said.
“That, in turn, would have denied the trial court the ability to hear and consider all aspects of the proposed action.”
In legal documents obtained by Dailymail.com, the two executors of the estate, John Branca and John McClain, filed papers with the Los Angeles Superior Court asking it to stop Katherine from seeking $561,548 from them in a legal dispute related to the deceased Thriller. singer’s catalogue.
Katherine filed court papers seeking the six-figure sum in a motion, as she said she spent the entire amount on legal fees to prevent Branca and McClain from selling her late son’s work.
Last month, the estate announced a partial sale, as Sony bought the rights to half of Jackson’s material for $600 million amid Katherine’s objections.
Jackson has Prince and Paris (seen in 2022) with his ex-wife Debbie Rowe, 65. Bigi was born via surrogate mother in 2002. The identity of his biological mother has not been publicly revealed.
Jackson, who died in 2009, aged 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 1997 in France.
Michael’s eldest son, Prince, said through his legal team that he preferred to keep his position on the situation private.
Prince’s lawyers described him last June in court papers as “a private figure who never sought or called attention to 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 publicly disclosed, would likely have a negative impact on the ability to consummate this transaction or negotiate/renegotiate a different transaction in the future.” ‘
Michael’s daughter Paris said through her legal team last June that she also tried to “keep her position in this matter confidential” citing “a variety of intrapersonal family reasons.”
