Michael Jackson’s children cut off from trust funds until dispute with IRS is resolved

Michael Jackson’s children 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, are barred from receiving money from his trust until his estate settles the estate and IRS years-long dispute, according to court documents obtained by People Thursday.

Following the tax audit, the estate was “issued a memo of deficiency” that alleged that he had “understated the value of his estate” and owed “$700 million in taxes and penalties.”

According to the records, the heir opposed the tax court’s findings and won in 2021.

Therefore, the heir filed a request to reconsider the value of the music catalog of the “Thriller” singer known as Mijac.

The application is still pending, which means the value of the property has not yet been definitively determined for tax purposes.

According to the documents, once the value of the property is determined, the tax office and the tax office will have to approve the value of the deduction before a final decision can be issued.

According to the newspaper, as the battle continued, lawyers demanded that part of Michael’s estate be transferred to a trust fund of Michael Jackson’s family.

However, the request was denied because the contractors argued that they “cannot determine how much could be safely distributed at this time.”

The executors further suggested that the estate provided for Michael’s children and mother through a “family allowance,” according to the documents.

The ruling came months after Sony Music Group finalized the deal in February buy half of Michael’s music catalog for at least $600 million.

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