Michael Jackson's trust is imposing financial restrictions on his three children and mother until his estate resolves a tax dispute with the IRS.
People obtained court documents on May 28 stating that Prince, Paris, Bigi Jackson, and their grandmother Katherine won't get any trust distributions until the tax problem is fixed.
The conflict began when the IRS audited the estate's federal tax return, accusing them of undervaluing assets and demanding $700 million in taxes and penalties. Even though the estate emerged victorious in a tax court trial in 2021, there is still an ongoing motion for reconsideration regarding the value of Jackson's music catalog, called Mijac.
Executors are refusing to distribute any part of the estate until the IRS determines its value for tax purposes. Despite requests from attorneys, they insist that it is not safe to make any distributions until then.
Prince was born in 1997 to Jackson and ex-wife Debbie Rowe, while Paris was born in 1998. Bigi, also known as Blanket, was born through a surrogate in 2002. Sony Music Group recently bought half of Jackson's music catalog for over $600 million.
Bigi is currently dealing with financial issues and is in a legal dispute with his grandmother Katherine. He took legal action in March to prevent her from accessing estate funds while in a legal battle with the estate executors.
This never-ending legal case brings more complications to the already complex situation of Jackson's estate, which has been going on for almost 15 years since his passing in 2009. Even though his heirs have tried to stop the estate executors from selling a significant part of his catalog, a partial sale was recently declared. Prince and Paris, for personal and family reasons, have chosen to keep their involvement in this issue confidential.
