When the IRS asked $4 million in tax from the Estate in 2021, we thought that was it and the bill would have been settled.
But it seems not!
The Estate has yet to settle the dispute and according to court documents, Katherine Jackson and his 3 children trust cannot receive any funds until the dispute is resolved.
According to a legal filing, Michael’s family’s trust will not get funded due to an unresolved dispute between the estate and the IRS. The latest update in the probate case reveals that “twenty percent” of the estate needs to be given out to charity before any distribution can be made to sub-trusts.
“The Trust requires that twenty percent 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 legal document reads.
It continues, “Thus, the trusts for Mrs. Jackson and Michael’s children cannot be funded until the tax dispute with the IRS is resolved as the resolution of that dispute is necessary in order for the Executors to determine the amount of the charitable gift.”
The court document further states that until the estate’s tax return case is resolved, the trust’s executors cannot distribute to the beneficiaries, even if the trust were funded.
“Therefore, Mrs. Jackson and the children’s needs would not be able to be met by a distribution to the trust. It is in Mrs. Jackson’s and the children’s best interests for the Estate to continue to provide for them through the family allowance, which the Executors are authorized to do,” the legal document states.
UPDATE 12/06/2024: Statement from the Michael Jackson Estate regarding IRS and the Family Trust:
As we have received inquiries asking whether the estate is refusing to fund the Michael Jackson Family Trust, we thought it best to send this memo to the group as a whole in order to clear up any confusion within the fan community, given the erroneous statements made by the tabloid press that were originally included in a People magazine article that has since been widely retracted.
For those of you who don’t know, under the law, there are various hurdles to overcome in order for the probate of the estate to be completed and distributions to be made. This includes the resolution of all outstanding disputes, the most important of which are those involving the IRS* and Robson/Safechuck. But that doesn’t mean that Michael’s children and his mother don’t receive care and that all their needs aren’t being met. In fact, Michael’s children and mother are extremely well taken care of by the estate, exactly as Michael would have wished.
Ultimately, the estate takes its obligations to provide for the children and Mrs. Jackson very seriously. This will be the case whether the money is in the trust or in the estate.
Source: The Blast
