The unexpected turn of events following Michael Jackson's death has left fans and followers stunned. The King of Pop's offspring, Prince, Paris, and Blanket, stood to inherit their father's vast fortunes. However, a legal battle with the IRS has put everything at risk.
Jackson's three children, Paris, Bigi and Prince, became beneficiaries of the pop star's estate after his death in 2009, while his mom Katherine became a sole beneficiary of a sub-trust in Jackson's will.
However, in 2021 the IRS audited the estate's federal estate tax return and claimed it had 'undervalued its assets'.As a result, the IRS was owed 'an additional $700 million in taxes and penalties', according to a filing obtained by People.
The estate disputed the assessment and won, but it has since filed a motion for reconsideration regarding the court's value of Mijac; Jackson's music catalog, which is owned by Sony music.The case remains pending, meaning the value of the estate has not been determined and a final judgement has not been made.
As the case moves through the system, attorneys requested that a portion of Jackson's estate remain 'subject to administration' to distribute to the Michael Jackson family trust.
However, John Branca and John McClain, who are the executors of the will, rejected the request.
The pair claimed they could not 'possibly determine what amount could be safely distributed at this time', and noted that 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'.
In order to determine the charitable contribution, the dispute with the IRS must be resolved.
The decision means Paris, Bigi and Prince, who are all in their 20s, will not have access to money from the estate until the issue is resolved.However, the executors have suggested that the estate could provide for the three kids and Jackson's mother using 'the family allowance'.
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