Michael Jackson's Kids Have Just Been Cut Off From Receiving Any Of His Money

Paris, Bigi and Prince have been cut off from recieving money from the estate.

Prince Jackson, Bigi Jackson and Paris Jackson

A legal battle with the IRS has prevented Michael Jackson's mother and his three children from obtaining any inheritance funds.

Jackson's mother Katherine became the only beneficiary of a sub-trust in Jackson's will, while his three children, Paris, Bigi, and Prince, received the pop star's inheritance following his passing in 2009.

But the IRS 'undervalued its assets' after auditing the estate's federal estate tax filing in 2021.

Consequently, the file that People was able to get stated that the IRS was due 'an extra $700 million in taxes and penalties'.

The estate successfully challenged the assessment, but it has since submitted a move for reconsideration over the court's determination of the worth of Michael Jackson's collection of songs, which Sony Music owns.

Because the lawsuit is still continuing, neither the estate's worth nor a definitive decision have been made.

Attorneys have asked for a portion of Jackson's assets to remain "subject to administration" in order to deliver it to the Michael Jackson family trust while the lawsuit proceeds through the legal system.

The request was turned down by the executors of the will, John Branca and John McClain.

The pair claimed they could not 'possibly determine what amount could be safely distributed at this time', and noted that the trust 'requires that 20 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 IRS disagreement needs to be settled in order to calculate the charitable donation.

The ruling means that until the matter is settled, Paris, Bigi, and Prince—all of whom are in their 20s—will not be able to receive funds from the estate.

The executors have proposed, however, that Jackson's mother and the three children might receive 'the family allowance' from the estate.

Prince and Paris, Jackson's two oldest children, were shared by Jackson and his former spouse Debbie Rowe. In 2002, he received Bigi through a surrogate.

The children are currently 27, 26, and 21, in that order.

In 2021, Prince spoke about how close the siblings are, as he said: "At this point in our life it doesn't really feel like there's that hierarchy of, 'I'm the older brother'.''

"It's more [that] we're all siblings and we're kind of all on that same level where my sister has her strengths, and my brother has his strengths, and where I'm not as strong in certain areas, they complement me in that way," he added.