Michael Jackson's children were denied access to trust fund money (4 photos)

10 June 2024

Michael Jackson's children are unable to receive money from his trust fund due to problems with the IRS. Until the situation is resolved, they are forced to rely financially only on the “family allowance.”

Prince Jackson, Paris Jackson and Blanket "Biggie" Jackson, March 2024

Michael Jackson has three children: Prince, who is now 27 years old, Paris, who is now 26 years old, and Blanket "Biggie", who is now 22 years old. They are each considered a beneficiary of his trust fund, while his mother, Catherine, now 94, is the sole beneficiary of a special sub-fund in his will.

However, they are currently prohibited from receiving any money from the trust fund until the IRS resolves the financial dispute, which has been going on for several years.

Problems started in 2021

Michael Jackson with his mother, Katherine Jackson, April 21, 2005 in Santa Maria, California

After a tax audit, the fund received a notice of deficiency, which stated that its assets were grossly undervalued and resulted in a debt of "$700 million in taxes and penalties." However, the executors of the singer's estate challenged these claims in tax court and won the case back in 2021.

Another petition was filed

Prince Michael Jackson, Paris Jackson and Bigi January 26, 2012 in Los Angeles, California

The foundation has since filed another petition to review the value of Jackson's music catalog, known as Mijac. Since the petition has not yet been processed, the value of the property for tax purposes has not yet been determined. Once it is determined, the estate and the IRS must approve the amount of the deduction to make a final decision.

Amid this fight, lawyers demanded that part of Jackson's estate be distributed to his heirs. However, this request was rejected. The IRS said the reason for the denial is that they "cannot calculate exactly how much can be distributed without consequences at this time."

The tax office said no

Prince Jackson, Paris Jackson and Bigi Jackson attend the press screening of "MJ: The Musical" at the Prince Edward Theater on March 27, 2024 in London, England

Instead of transferring the money to Michael Jackson's family trust, the tax authorities are proposing to provide his children and mother with a "family benefit." A spokesman for the Jackson Trust issued a statement saying the proposal was "completely misguided and misguided."

“In the annual reports submitted to the probate court, which are in the public domain, anyone can see that the trust fund provides very significant amounts of money to Michael's mother and children for their support,” he said. “The trust has a very friendly relationship with Michael’s children and when they need something we work with them to ensure they are well looked after as Michael would have wanted.”

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