Entertainment
Jackson family faces $2 billion IRS freeze, tying up money for Michael’s mother and children
Late legend Michael JacksonThe $2 billion estate is embroiled in an ugly dispute with the IRS over taxes, reportedly leaving the King of Pop’s three adult children — and ailing 94-year-old mother — scrambling for cash while they run out of money. heritage, RadarOnline.com has learned.
Jackson matriarch Katherine and Michael’s children — Prince27, Paris26 and 22 years old Bigiwho is also known as Deken – were said to have been blindsided by a legal filing on May 28.
In court documents, Jackson’s executors John Branca and John McClain claim they “may not be able to determine the amount that can be safely divided” among the four heirs from their massive trust fund until the FBI decides on the exact value of Michael’s music catalog of approximately $1 .2 billion. – half of which consists of orphans sold to Sony, according to the Globe.
The filing states that the IRS previously stated that the estate “undervalued its assets” and owed “an additional $700 million in taxes and penalties.”
But in 2021, that ruling was overturned and the executors filed a motion with the IRS to reexamine the value of Michael’s songs, including hits like Thriller And Go away.
A family member chirped: “This situation has put the children and Katherine in financial trouble. There is a real chance that they will run out of money before it is resolved, because they don’t exactly live a frugal life.’
“The children are used to luxury and luxury living – and Katherine’s medical bills are enormous as they receive virtually 24-hour care,” the family member added.
A spokesman for the estate insisted that lucrative grants will be provided to the group until the IRS wrangling is resolved – and the executors claimed that “virtually no requests from Mrs. Jackson for her care or maintenance have been denied,” adding that she received more than $55 million since the singer’s death from an overdose at the age of 50 in 2009.
The spokesperson also emphasized that state law, not executors, locks up the money.
The latest filing is not the first battle for Michael’s money. In the April court papers, Katherine argued that the executors of the will were present too frugal in allocating money for her and the children.
And last month, Bigi demanded that the estate stop paying his grandmother’s mounting legal bills for what he saw as a long-running quest to stop the proposed sale of Sony, which was championed by Prince, Branca and McClain .
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Sources said the ongoing legal battle is bad news for the already fragile health of Michael’s beloved mother, who reportedly suffered a stroke in 2018.
But worse, spies say it’s unclear how much of the fortune will be left to the pop star’s loved ones after taxes are tallied, as his will also stipulates that 20 percent of his estate must first be distributed to charity.
“The whole family seems to be spending money like it’s water,” the insider said. “Michael is probably turning in his grave!”
