(March 7, 2005 – Source: Getty Images North America)
*Michael Jackson’s estate remains entangled in an unresolved tax dispute with the IRS.
According to The Blast, funds cannot be allocated to the singer’s mother, Katherine Jackson, and his three children’s trust until the dispute is settled. The outlet writes, “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.
Per The Blast, the docs continue, “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 stipulates that the trust’s executors cannot distribute funds to beneficiaries until the estate’s tax return case is resolved.
“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.
Meanwhile, EUR’s Chris Richburg reported earlier that MJ’s son, Blanket Jackson, is not good with his grandmother Katherine using money from the estate to pay attorney’s fees for an appeal of a previous ruling.
Per Richburg’s report, “The ruling in question involves a case regarding a business transaction between the estate and Sony. TMZ cited recent reports when mentioned the unspecified transaction may relate to a deal the estate made with Sony to sell about half of Michael Jackson’s famed music catalog for $600 million.”
Katherine filed motions in December “asking that the estate pay for the legal bills she incurred in making her objections, including the ongoing appeal,” Richburg writes.
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