Michael Jackson’s Kids & Mother Blocked From Receiving Funds From Singer’s Trust Due To IRS Battle

The children and mother of the late King of Pop, Michael Jackson, have been blocked from receiving funds from his trust until a longstanding legal issue is resolved. 

According to court documents, Prince, 27, Paris, 26 and Bigi Jackson, 22, as well as their grandmother, Katherine, 94, have been temporarily prevented from accessing the funds from Michael Jackson’s trust. The root of this issue lies in an ongoing dispute between the singer’s estate and the Internal Revenue Service (IRS).

The legal saga began when IRS officials issued the estate “a note of deficiency” following a tax audit, alleging that the estate “undervalued its assets” and owed “$700 million in taxes and penalties.” The estate contested these findings and ultimately prevailed in its case in 2021. However, the estate has since filed a motion to reconsider the valuation of the singer’s back catalog, leaving the overall value of the estate for tax purposes in limbo.

This unresolved matter has prevented the estate from distributing funds to the designated beneficiaries of the trust, effectively cutting off the Jackson family members from their expected financial resources.

To address the situation, the estate’s attorneys requested a portion of the funds be allocated to the family trust. Still, this request was denied due to the inability to determine “what amount could be safely distributed at this time.” As an alternative, the executors suggested that Jackson’s beneficiaries receive funds through the “family allowance” mechanism.

The financial constraints faced by the Jackson family come just months after a significant development in the estate’s dealings. In February, Sony Music Group reportedly paid $600 million to acquire half of Jackson’s music catalog. This transaction has further complicated matters. Katherine has been embroiled in a separate legal battle with the estate as she attempts to block this business deal, which she believes to be the catalog sale. Katherine now seeks to have the estate cover the legal fees she has accrued in her efforts to oppose the deal, but the estate is resisting her request.

Adding to the family’s woes, Bigi, also known as Blanket, has recently filed legal papers against his grandmother, Katherine, to prevent her from using estate funds for her legal battles.

Last year, men who accused the late singer of abuse were allowed to move forward with their lawsuits against Jackson’s production company.