The estate of legendary late icon Michael Jackson has been ordered to cease all payments due to unresolved tax issues and thereby has cut off the trust funds of his three children as well as his mother, Katherine Jackson.
According to People, on May 28, the IRS filed a motion ordering that the estate cease payments to all trust fund beneficiaries until a $700 million back taxes dispute is resolved.
“In annual reports provided to the probate court, which are publicly available, anyone can see that the Estate provides Michael’s mother and children with very substantial amounts of money to support them,” reads a statement from the estate. “The Estate has a very cooperative relationship with Michael’s children and whenever they need anything, the Estate works with them to ensure that they are very well taken care of, just as Michael would have wanted.”
Over the past couple of years, the valuable estate has been the subject of various legal battles between the beneficiaries and executors.
In March 2024, Katherine Jackson challenged estate executors John Branca and John McClain on a planned catalog sale transaction. Though at first standing in solidarity with their grandmother, all three kids decided to accept a court’s ruling that Branca and McClain could proceed with the deal.
The Jackson matriarch then filed a motion to appeal the ruling and is said to be racking up hundreds of thousands of dollars in legal fees leading to Jackson’s youngest son, Bigi (formerly Blanket), to say he’s against the estate having to pay for Katherine’s legal fees in the matter.
“It is readily apparent that a reversal on appeal would be an extreme longshot,” Bigi’s lawyers said via statement. “Given those odds, Bigi decided not to waste his resources to participate in an appeal. Nonetheless, Katherine has decided to appeal this court’s ruling. That decision is not for the benefit of the heirs.”
Although no new music has been released by the Off The Wall artist since his 2009 death, the Jackson estate has been estimated to be worth as much as $2.4 billion.
