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Michael Jackson’s kids cut off from receiving any money from his trust until estate and IRS settle dispute

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Michael Jackson's kids
Michael Jackson’s kids, Prince, Paris and Bigi, are cut off from his trust until the late singer’s estate settles a dispute with the IRS. Alan Chapman/Dave Benett/Getty Images

Michael Jackson’s kids won’t be seeing his money anytime soon.

Prince, 27, Paris, 26, and Bigi Jackson, 22, along with the late King of Pop’s mother, Katherine, 94, have been cut off from receiving money from his trust until his estate and IRS settle a years-long dispute, per court documents obtained by People Thursday.

Following a tax audit, the estate was “issued a note of deficiency” alleging the estate “undervalued its assets” and owed “$700 million in taxes and penalties.”

Michael Jackson
According to court documents obtained by People, an audit determined the King of Pop’s estate allegedly “undervalued its assets.” Getty Images
Michael Jackson's kids
Per the findings, the estate reportedly owes “an additional $700 million in taxes and penalties.” Getty Images

According to the filing, the estate argued against the findings in tax court and won in 2021.

The estate has since filed a motion for the value of the “Thriller” singer’s music catalog, known as Mijac, to be reconsidered.

The request is still pending, which means the estate’s value has yet to be finalized for tax purposes.

Michael Jackson's kids
Back in 2021, the estate argued against the findings and won. Getty Images
Michael Jackson's kids
A motion for the value of Michael’s music catalog to be reconsidered has since been filed. Getty Images

After the value of the estate is determined, the estate and IRS will have to approve the value of the deduction in order for the final ruling to be made, the documents state.

As the battle continues, attorneys requested a portion of Michael’s estate be distributed to the Michael Jackson family trust, according to the outlet.

However, the request was denied because executors argued that they can’t “possibly determine what amount could be safely distributed at this time.”

Michael Jackson with his kids.
However, the request has yet to be finalized, meaning the estate’s value hasn’t been determined. ZUMAPRESS.com
Michael Jackson's kids
The estate and the IRS will then have to approve the value of the deduction before moving forward. Getty Images

Executors further suggested that the estate provide for Michael’s children and mother through the “family allowance,” per the docs.

The ruling comes months after Sony Music Group finalized a deal in February to purchase half of Michael’s music catalog for at least $600 million.

Meanwhile, Bigi has also been involved in an ongoing dispute with his grandmother Katherine after she attempted to use money from the estate to pay legal fees for an undisclosed court battle.

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