Until the IRS tax dispute is “resolved,” funding cannot be provided to Michael Jackson’s mother and children’s trust

The estate of the late King of Pop, Michael Jackson, is currently involved in an unresolved tax issue with the IRS. The Blast was able to get court documents that state that the singer’s mother Katherine Jackson and the trust for his three children are not eligible to receive any money until the case is settled.

A $600 million music catalog acquisition reportedly led to a court dispute between Michael’s mother and the estate. His mother has gotten almost $55 million, according to the estate, and she ought to pay for her own legal fees.

A legal filing states that the singer’s estate and the IRS are at odds, and as a result, Michael’s family trust will not be paid. According to the most recent developments in the probate case, distributions to sub-trusts cannot take place until “twenty percent” of the estate has been donated to charity.

“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,” according to the court document.

According to it, “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 filing further says that even if the trust were funded, the executors cannot distribute to the beneficiaries until the estate’s tax return matter is settled.

“A distribution to the trust would therefore not be able to meet the requirements of Mrs. Jackson and the children. The will says that it is in Mrs. Jackson’s and the kids’ best interests for the Estate to keep giving them the family allowance, and the Executors have the authority to do so.

The most recent development follows the disclosure by Michael’s estate in an earlier court filing that Katherine, his mother, has received more than $55 million since the pop icon’s 2009 passing.

The late pop star’s youngest son, Bigi, 22, filed a motion to stop Katherine, 93, from using estate funds for an unidentified legal battle, most likely related to a recent $600 million catalog agreement with Sony. This filing came after Bigi’s request.

According to TMZ, Katherine’s estate is claiming she has enough money to pay for her legal fees because she earned over $33 million in cash from a $160,000 monthly stipend.

The records also reveal that the estate spent over $15 million buying and renovating her home, which comes with a personal chef, gardener, and security.

Bigi first agreed with his grandmother’s objections to the confidential agreement, but a judge rejected their arguments. Subsequently, he filed court paperwork claiming that Katherine ought to pay for her own legal representation, claiming that it would be “unfair” for him and his siblings to pay for Katherine’s legal defense as the estate’s heirs.

Bigi, born Prince Michael Jackson II and formerly known as Blanket, is the younger brother of Prince and Paris and the youngest son of Michael.

Bigi’s older cousin, Tito Joe “TJ” Jackson, and his grandmother Katherine shared custody of the 22-year-old until 2017, when Katherine gave up her position. Bigi was born via surrogacy in 2002.

Page Six reports that Katherine said, “Katherine is no longer needed to fulfill the duties that were necessary when joint-guardians were appointed,” in her court motion to resign as guardian. In light of [Blanket’s] recent 15th birthday and Katherine’s own age [87], she believes TJ is capable of carrying out the required guardianship duties for the Minor Child.”

Bigi has usually avoided the spotlight, but in 2021, he made an uncommon appearance on television to talk about climate change. He did so on “Good Morning Britain” at his brother Prince’s Thriller Night Halloween Party, which was held at his family’s estate and benefited the Heal Los Angeles Foundation.

Bigi stated of climate change, “I do think it’s important that we all know about it,” prior to the UN’s COP26 session. “And I think we have some work to do, but our generation knows how important it is.”

Standing in a room filled with pictures of the King of Pop’s past concerts and his trademark costumes, he also paid respect to his father.

He said of the Jacksons’ Hayvenhurst mansion, “There’s a lot of history in this house and the studio here.” That was his entire focus. Making something that people may enjoy and, hopefully, find useful is what all of us aspire to achieve.”

In June 2009, Bigi was just seven years old when his father, Michael, passed away from cardiac arrest brought on by a deadly mix of medications that his physician had given him.

Bigi was close to both of his siblings, Paris and Prince, having grown up as an orphan, but he was especially close to Prince. “Prince and Bigi are best friends,” a family acquaintance told People magazine in 2019. They also “share a lot of interests like science and sci-fi.”

Prince stated to Access Hollywood in October 2019 that going through similar difficulties helped the siblings get closer.

“I think with any siblings, you know, you grow up in a situation and factors that are very similar,” he said. Similar to that circumstance, you connect with them since no one else truly knows how you were reared or how you grew up. However, they completely get you, and your relationship is very unfiltered and honest.”