Michael Jackson’s three children have been cut off from receiving funds from his trust for the time being.
Michael Jackson is still one of the biggest names in pop music, even though the star passed away in June 2009.
His music continues to resonate with millions of people worldwide, with many using it as a way to remember him and his impact on the entertainment industry.
Jackson is survived by his three children, Prince, 27, Paris, 26, and Bigi, 22, who are all beneficiaries of the ‘Billy Jean’ hitmaker’s trust, as per his will, while his mother Katherine, 94, is a sole beneficiary of a sub-trust.
However, getting to his fortune might be a tad more difficult than the family assumed due to an ongoing IRS tax dispute associated with his estate.
According to legal documents obtained by The Blast and PEOPLE, it has been reported that Jackson’s estate “undervalued its assets” and owes “$700 million in taxes and penalties.”
Until this is settled with the IRS, no one will be getting any money.
“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 revealed, as per Yahoo! News.
It continues: “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 further added that until the estate’s tax return case is resolved, the trust’s executors cannot distribute it to the named beneficiaries.
“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.
The news comes shortly after TMZ reported that the late singer’s mother received over $55 million since the pop icon died, so she should be covering her own legal expenses during these ongoing battles rather than Jackson’s estate.
The outlet reported that Katherine has enough funds to cover her legal expenses, having allegedly received over $33 million in cash from a monthly allowance of $160,000.
The motion to block the funding was filed by Jackson’s youngest son, Bigi.
The documents also allege that the estate has invested approximately $15 million in purchasing and upgrading her residence, which includes a private gardener, chef, and security.