Your tip
RadarOnlineRadarOnline
BREAKING NEWS

Jackson Family Faces $2 Billion Freeze-Out: IRS Problems Tie Up Cash for Michael's Kids and Mom

michael jackson mother kids court battle pp
Source: MEGA

Half of Michael's music catalog is expected to be sold to Sony.

Jun. 12 2024, Published 4:00 p.m. ET

Link to FacebookShare to XShare to FlipboardShare to Email
Getting your Trinity Audio player ready...

Late legend Michael Jackson's $2 billion estate is tied up in an ugly dispute with the IRS over taxes, which has reportedly left the King of Pop's three adult children — and ailing 94-year-old mom — scrambling for cash while they're iced out of their inheritance, RadarOnline.com has learned.

Jackson matriarch Katherine and Michael's kids — Prince, 27, Paris, 26 and 22-year-old Bigi, who is also known as Blanket — were said to be blindsided by a bombshell legal filing on May 28.

Article continues below advertisement
michael jackson production company block accuser access criminal files
Source: MEGA

Executors claim they cannot 'safely' distribute funds from Michael's estate until the IRS determines the exact value of his music catalog.

In court documents, Jackson's executors John Branca and John McClain argue they cannot "possibly determine what amount could be safely distributed" to the four heirs from their tremendous trust fund until the feds decide on the exact value of Michael's roughly $1.2 billion-plus music catalog — half of which is being sold to Sony.

The filing states the IRS had previously declared the estate "undervalued its assets" and owed "an additional $700 million in taxes and penalties,"

Article continues below advertisement
michael jackson katherine jackson pp
Source: MEGA

A family member said the freeze has put Michae's mother Katherine and his kids in 'financial straits.'

Article continues below advertisement

But in 2021, that ruling was overturned and the executors filed a motion for the IRS to reexamine the worth of Michael's tunes, including hits such as Thriller and Beat It.

A family member squealed, "This situation has put the kids and Katherine in financial straits. There's a real possibility of them running out of cash before it's resolved because they don't exactly live frugal lives."

Article continues below advertisement
paris prince blanet jackson
Source: MEGA

The family member noted Michael's adult children are 'used to opulence and luxurious living.'

MORE ON:
Michael Jackson
Article continues below advertisement

"The kids are used to opulence and luxurious living — and Katherine's medical bills are enormous for virtually around the clock care," the family member added.

A spokesperson for the estate insisted lucrative allowances are being provided to the group until the IRS squabble is settled — and the executors claimed "virtually no request of Mrs. Jackson for her care or maintenance has been declined," adding she's received more than $55 million since the singer's overdose death at age 50 in 2009.

The spokesperson also insisted state law, not executors, are tying up the cash.

Article continues below advertisement
michael jackson son blanket jackson fighting grandma katherine  legal fees appeal music catlog sale
Source: MEGA

Katherine previously argued executors were being too frugal with awarding money to her and her grandchildren.

Article continues below advertisement

The latest filing isn't the first fight over Michael's money. In court papers from April, Katherine argued the executors were being too frugal with awarding money to her and the kids.

And during the previous month, Bigi demanded the estate stop paying his grandmother's mounting legal bills for what he saw as a longshot quest to stop the proposed Sony sale, which was championed by Prince, Branca and McClain.

Never miss a story — sign up for the RadarOnline.com newsletter to get your daily dose of dope. Daily. Breaking. Celebrity news. All free.

Article continues below advertisement

Sources snitched the ongoing legal tussles are bad news for the already fragile health of Michael's beloved mother, who is rumored to have had a stroke in 2018.

But even worse, spies dish, it's unclear how much of the fortune will be left for the pop star's loved ones after taxes are tallied as his will also specifies 20 percent of his estate must first be distributed to charity.

"The whole family seems to spend money like it's water," the insider said. "Michael must be turning over in his grave!"

Advertisement

DAILY. BREAKING. CELEBRITY NEWS. ALL FREE.

More From Radar Online

    Opt-out of personalized ads

    © Copyright 2024 RADAR ONLINE™️. A DIVISION OF MYSTIFY ENTERTAINMENT NETWORK INC. RADAR ONLINE is a registered trademark. All rights reserved. Registration on or use of this site constitutes acceptance of our Terms of Service, Privacy Policy and Cookies Policy. People may receive compensation for some links to products and services. Offers may be subject to change without notice.