Michael Jackson's children and mother blocked from receiving money from his estate over $700M tax bill

LOS ANGELES, CALIFORNIA: Michael Jackson's mom and his three children have been cut off from receiving money from his estate amid an ongoing dispute with the IRS, per Daily Mail. 

Jackson's mother Katherine became the only beneficiary of a sub-trust in Jackson's will, while his three children, Paris, Bigi, and Prince, received the pop star's inheritance following his passing in 2009. But the IRS "undervalued its assets" after auditing the estate's federal estate tax filing in 2021.

Michael Jackson's children cut off from his estate following his death

According to documents obtained by People, the pop icon's estate owes IRS "an additional $700 million in taxes and penalties." The estate successfully challenged the assessment, but it has since submitted a move for reconsideration over the court's determination of the worth of Michael Jackson's song collection, which Sony owns.

Since the case is ongoing, the value of the estate and a final verdict have yet to be determined. Lawyers have requested that a part of Jackson's assets be kept "subject to administration" to ensure they are eventually transferred to the Michael Jackson family trust as the legal proceedings are being conducted.

The request was turned down by the executors of the will, John Branca and John McClain. 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 per cent 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."

The disagreement with the IRS needs to be settled to calculate the charitable donation. The ruling means that until the matter is settled, Paris, Bigi, and Prince—all of whom are in their 20s—will not be able to receive funds from the estate.

The executors have proposed, however, that Jackson's mother and the three children might receive "the family allowance" from the estate. Prince and Paris, Jackson's two oldest children, were shared by Jackson and his former spouse Debbie Rowe. In 2002, he welcomed Bigi through a surrogate.

Internet wishes Michael Jackson had left behind a 'solid will' 

Several social media users commented on Jackson's children cut off from funds with an Instagram user saying, "The system trying to destroy a iconic American family of color."

Another user said, "I really wish he would have given his mother a solid will." The next user said, "They need to pay what they owe. Whoever is handling the estate is doing a

poor job."

A user said, "His estate probably owns a lot in taxes." The next user said, "I bet this is Joe Jackson cursing the family from the beyond!"

A user said, "This is crazy." While a user wrote, "Completely nuts."

This article contains remarks made on the Internet by individual people and organizations. MEAWW cannot confirm them independently and does not support claims or opinions being made online.