Michael Jackson's beneficiaries, which include his mother Katherine and three children Paris, Prince, and Bigi, are currently having issues regarding financial distributions from his trust.
King of Pop’s heirs will not receive anything from his trust until the ongoing dispute between Jackson's estate and the IRS remains unresolved.
According to a May 28 filing obtained by People concerning the late pop icon's estate case, the executors stipulated that while legal matters persist, beneficiaries will not receive any distributions.
The legal dispute arose when the IRS scrutinized the estate's federal estate tax return and "issued a note of deficiency,” alleging an undervaluation of assets by the estate and demanding “an additional $700 million in taxes and penalties,” as per the filing.
In 2021, the estate challenged those assessments and won after a trial in tax court. However, a motion for reconsideration regarding the valuation of Mijac, Jackson's music catalog owned by Sony Music, remains pending since then.
As a result, the exact value of the estate for tax purposes remains undetermined. Once this valuation is established, both the IRS and the estate must reach an agreement on the deduction value before a final decision can be made.
Meanwhile, during this ongoing process, legal representatives have requested that a portion of the estate be kept under administration until all outstanding legal matters are resolved, with the intention of distributing it to the Michael Jackson family trust.
Katherine is the sole beneficiary of a sub trust in Michael’s will.
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