Michael Jackson's Kids Completely Cut Off From His Multi-Million Dollar Inheritance

By Editorial Staff in Showbiz On 10th June 2024

Jackson's three children, Paris, Bigi, and Prince, became beneficiaries of the pop star's estate after his death in 2009.

Meanwhile, his mom, Katherine, became the sole beneficiary of a sub-trust in Jackson's will.

This arrangement was meant to ensure that his loved ones were well taken care of after his passing.

However, in 2021, the IRS audited the estate's federal estate tax return.

They claimed it had "undervalued its assets," leading to significant financial repercussions for the estate.

As a result, the IRS stated that an additional $700 million in taxes and penalties were owed, according to a filing obtained by People.

Prince Jackson, Paris Jackson and Bigi Jackson (John Phillips, Getty Images)

This unexpected development has added a considerable financial burden and uncertainty to the already complex situation surrounding Jackson's estate.

The estate disputed the assessment and won.

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However, it has since filed "a motion for reconsideration regarding the court's value of Mijac," which is Jackson's music catalog owned by Sony Music. 

They believe the court's valuation doesn't accurately reflect the true worth of the catalog. 

The case remains pending, meaning the value of the estate has not yet been determined, and a final judgment has not been made.

This ongoing uncertainty leaves a lot of questions unanswered.

As the case moves through the system, attorneys have requested that a portion of Jackson's estate remain "subject to administration" so it can eventually be distributed to the Michael Jackson family trust.

This request is part of their effort to manage and distribute the estate's assets properly. 

However, John Branca and John McClain, who are the executors of the will, rejected the request. They found it impossible to comply at this time.

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The pair claimed they could not "possibly determine what amount could be safely distributed at this time," highlighting the complexity of the situation.

They also 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."

(AP Photo, Kevork Djansezian)

This requirement adds another layer of complexity to their decision-making process.

In order to determine the charitable contribution, the dispute with the IRS must first be resolved.

This step is crucial before any further distribution of the estate's assets can occur.

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.

This situation prolongs the financial uncertainty they face.

However, the executors have suggested that the estate could provide for the three kids and Jackson's mother using "the family allowance."

This would ensure they have some financial support during the ongoing legal issues.

Jackson shared his two eldest children, Prince and Paris, with his ex-wife Debbie Rowe.

He welcomed Bigi in 2002 via a surrogate. Now, the kids are 27, 26, and 21, respectively.

In 2021, Prince spoke about how close the siblings are.

He said: "At this point in our life it doesn't really feel like there's that hierarchy of, 'I'm the older brother.'"

Michael Jackson's mother Ig- @princejackson

He emphasized their strong bond, adding:

"It's more [that] we're all siblings and we're kind of all on that same level where my sister has her strengths, and my brother has his strengths, and where I'm not as strong in certain areas, they complement me in that way."

As the dispute continues to unfold, the future of Jackson's estate and the well-being of his children and mother remain uncertain.

This prolonged legal battle has created a lot of stress and worry for the family.