Michael Jackson passed away in June 2009. (Photo: Instagram)
The shocking details emerge days after it was reported that Jackson’s three children – Paris, Prince, and Bigi and his mother, Katherine will not receive funds from the late legendary singer’s trust.
Michael Jackson was in massive debt at the time of his death in 2009. As reported by NBC News, executors of the late singer’s estate filed a petition in the Los Angeles County Superior Court recently in which they claimed that the King of Pop faced a debt of more than $500 million. It is approximately Rs 3700 crore.
“At the time of Michael Jackson’s death, Michael Jackson’s most significant assets were subject to more than $500 million of debt and creditors’ claims, with some of the debt accruing interest at extremely high interest rates, and some debt in default,” the petition said.
The shocking details emerged days after it was reported that Jackson’s three children – Paris, Prince, and Bigi and his mother, Katherine would not receive funds from the late legendary singer’s trust. They all have been blocked from getting money until the dispute between his estate and the IRS (Internal Revenue Service) is resolved.
However, Michael Jackson’s family members issued a statement later to clarify that they were still receiving payments through an allowance. “In annual reports provided to the probate court, which are publicly available, anyone can see that the Estate provides Michael’s mother and children with very substantial amounts of money to support them,” the statement read.
“The Estate has a very cooperative relationship with Michael’s children and whenever they need anything, the Estate works with them to ensure that they are very well taken care of, just as Michael would have wanted,” it added.
The legal dispute concerning Michael Jackson’s financial details and his trust began when the IRS examined the federal estate tax return and “issued a note of deficiency” to the late pop icon’s estate. It alleged that the estate “undervalued its assets” and owed “an additional $700 million in taxes and penalties.”
In 2021, the estate challenged these allegations and won a trial in the tax court. Later, the estate also filed a motion for reconsideration regarding the court’s value of Mijac’s (Michael Jackson’s music catalogue owned by Sony Music), which is still pending.
Michael Jackson was an American singer, songwriter, dancer, and philanthropist. Also known as the “King of Pop”, he was loved across the world. However, the singer passed away on June 25, 2009, i.e. ahead of his tour ‘This Is It’.
