The three children of Michael Jackson and his mother Katherine are in a precarious financial situation due to the IRS freezing $2 billion

Michael Jackson’s $2 billion estate is currently locked in a controversial legal battle with the IRS over tax issues.

The situation is said to have put pressure on the late icon’s three children and his 94-year-old mother, leaving them struggling to make ends meet as their expected inheritance remains out of reach.

The unexpected legal filing on May 28, 2024 caught Katherine Jackson and her grandchildren Prince, Paris and Bigi off guard.

According to legal papers obtained by the Globe, John Branca and John McClain, the administrators of Jackson’s estate, were unable to accurately calculate appropriate distributions to four beneficiaries from the trust extended to By the time federal authorities completed the valuation of the singer’s music catalog, estimated at more than $1.2 billion, half of it was sold to Sony.

The estate’s tax filings reveal that the IRS has accused them of undervaluing assets by as much as $700 million. This led to controversy over the valuation of Jackson’s iconic songs.

However, in 2021, the original ruling was overturned, causing the executors to ask the IRS to reassess the estate’s assets.

An insider revealed to the magazine: “This situation has left the kids and Katherine in dire financial straits. There’s a real possibility they’ll run out of money before things are resolved because they really the failure to live a frugal life.”

“The children were used to a life of luxury and luxury – and Katherine’s medical bills were huge for almost round-the-clock care.”

Furthermore, insiders also revealed uncertainties about the inheritance because it is unclear how much the male singer’s family members will have left after accounting for all taxes.

Notably, his will stipulated that a significant portion of his estate, 20% to be exact, would be allocated to charitable purposes before any distributions were made.

“The whole family seems to spend money like water. [Jackson] definitely turning over in my grave!”

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An estate representative emphasized that the collective is receiving ample financial support during the ongoing dispute with the IRS.

The executors assert that they have met nearly all of Katherine’s demands for her health and support, noting that she was allocated more than $55 million following her tragic death. her son at age 50 in 2009.

A spokesman emphasized the ongoing problem, saying state law, not the executor, is causing delays in distributing funds.

The recent legal battle involving the “Billie Jean” singer’s estate is part of a series of conflicts.

In April 2024, court documents revealed Katherine’s argument that the executors had been too cautious in allocating funds for herself and her three children.

Bigi then insisted that the estate would stop paying his grandmother’s mounting legal costs over her efforts to block the planned sale of Sony backed by Prince, Branca and McClain.

READ MORE: Michael Jackson’s alleged sexual abuse victim asks for trial to be expedited despite Estate’s gag order

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