Michael Jackson’s children, Prince, Paris, and Bigi Jackson, along with his mother, Katherine, have hit a roadblock in their financial future. Court documents have revealed that they have been temporarily cut off from receiving money from his trust until a dispute between his estate and the IRS is settled. This dispute arose from allegations that the estate undervalued its assets and owed a staggering $700 million in taxes and penalties.
Legal Battles and Financial Uncertainty
Following a tax audit, the estate faced a note of deficiency from the IRS. Despite winning a battle in tax court in 2021, the estate is still awaiting a final ruling on the value of Michael’s music catalog, known as Mijac. Until the estate’s value is determined and approved by the IRS, the family trust remains on hold. The estate executors have argued against distributing funds from the estate at this time, citing the uncertainty surrounding the final value.
The request to distribute a portion of Michael’s estate to the family trust has been denied, leaving his children and mother without immediate access to financial resources. Instead, executors have suggested providing for them through a family allowance. This decision has added to the financial strain faced by the Jackson family following the legal battles and tax disputes.
The financial outlook for Michael Jackson’s children remains uncertain as these legal battles continue. Not only are they facing delays in accessing funds from the estate, but they are also dealing with internal family disputes. Bigi Jackson, in particular, has been embroiled in a disagreement with his grandmother, Katherine, over the use of estate funds to cover legal fees for an undisclosed court battle. These challenges highlight the complexities of managing a high-profile estate and ensuring financial stability for future generations.
The financial future of Michael Jackson’s children is currently in limbo due to ongoing legal battles and tax disputes surrounding his estate. While the recent court ruling provides some clarity on the situation, uncertainties remain about when they will be able to access their inheritance. As they navigate these challenges, it is crucial for the family to come together and find a resolution that ensures their financial well-being in the years to come.