Michael Jackson’s three children and his mother will not receive any financial distributions from his trust until the estate settles an ongoing dispute with the IRS. Prince, 27, Paris, 26, and Bigi Jackson, 22, are the beneficiaries of the late singer’s trust, while his mother, Katherine, 94, is the sole beneficiary of a sub-trust in his will.
According to court documents obtained by DailyMail.com, the trusts for Jackson’s children and mother cannot be funded until the tax dispute is resolved. Despite this, the family still receives allowances, with the estate confirming that they provide substantial support to Katherine and the children. The estate emphasized its cooperative relationship with the family, ensuring their needs are met just as Michael Jackson would have wanted.
A source revealed that Katherine has received more than $55 million since Michael’s death, and virtually all of her requests for care and maintenance have been approved. The dispute originated from an IRS audit of the estate’s federal tax return, which resulted in a notice of deficiency alleging that the estate had undervalued its assets and owed $700 million in taxes and penalties. Although the estate won a trial in tax court in 2021, it has filed a motion for reconsideration regarding the court’s valuation of Jackson’s music catalog, Mijac, which is still pending.
Because the valuation is still unresolved, the estate’s value for tax purposes has not been finalized. Once determined, the estate and the IRS will need to agree on the value of the deduction before a final judgment can be made. Amid this ongoing dispute, attorneys requested a portion of Michael’s estate be distributed to the family trust, but this request was denied. Executors argued that they could not determine a safe amount to distribute at this time and suggested continuing to provide for the family through the existing allowances.
Prince, born in 1997, is Jackson’s first child with ex-wife Debbie Rowe. They welcomed their daughter Paris in 1998. After their divorce in 1999, Jackson received full custody of the children. Bigi, born via surrogate in 2002, has an unknown biological mother.
The estate’s recent filing follows Sony Music Group’s purchase of half of Michael’s music catalog for at least $600 million. This comes amid an ongoing dispute involving Bigi, also known as Blanket, who has filed legal papers seeking to prevent Katherine from using estate funds for legal battles with the estate executors.
In March, Bigi filed a motion to block Katherine from spending estate funds amid an extended legal dispute over the potential sale of Jackson’s catalog. Despite agreeing on resisting the sale, Bigi chose not to participate in Katherine’s appeal of the court ruling that allowed executors to explore sale options. Bigi’s legal team urged the court to use its best judgment in reimbursing Katherine for reasonable attorney’s fees.
Legal documents obtained by DailyMail.com revealed that executors John Branca and John McClain have asked the court to stop Katherine from pursuing $561,548 in legal fees over the sale of Jackson’s catalog. Katherine’s objections came after the estate announced a partial sale to Sony for $600 million.
Michael’s eldest son, Prince, and his daughter, Paris, have expressed through their legal teams a desire to keep their positions on the matter private, citing personal reasons and the potential negative impact on future transactions. This legal battle continues nearly 15 years after Michael Jackson’s death, with the family navigating complex legal and financial challenges.