Friday, May 31, 2024 - Late American pop king, Michael Jackson's children and his mother have been cut off from getting trust money amid an ongoing legal row.
Prince, 27, Paris, 26, and Bigi Jackson, 22, along with the
late King of Pop’s mother, Katherine, 94, have been cut off from receiving
money from his trust until his estate and IRS settle a years-long dispute, per
court documents obtained by People Thursday.
Following a tax audit, the estate was “issued a note of
deficiency” alleging the estate “undervalued its assets” and owed “$700
million in taxes and penalties.”
According to the filing, the estate argued against the
findings in tax court and won in 2021.
The estate has since filed a motion for the value of the
“Thriller” singer’s music catalog, known as Mijac, to be reconsidered.
The request is still pending, which means the estate’s value
has yet to be finalized for tax purposes.
After the value of the estate is determined, the estate and
IRS will have to approve the value of the deduction in order for the final
ruling to be made, the documents state.
As the battle continues, attorneys requested a portion of
Michael’s estate be distributed to the Michael Jackson family trust, according
to the outlet.
However, the request was denied because executors argued
that they can’t “possibly determine what amount could be safely distributed at
this time.”
Executors further suggested that the estate provide for
Michael’s children and mother through the “family allowance,” per the docs.
The ruling comes months after Sony Music Group finalized a
deal in February to purchase half of Michael’s music catalog for at
least $600 million.
Meanwhile, Bigi has also been involved in an ongoing
dispute with his grandmother Katherine after she attempted to use money
from the estate to pay legal fees for an undisclosed court battle.
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