Paris Jackson, the daughter of the late King of Pop Michael Jackson, petitioned a Los Angeles probate court to order a $600 million distribution from her father’s estate to the Michael Jackson Family Trust, arguing that she and her brothers have waited more than 17 years for it to be funded.
In legal documents, obtained and viewed by TheWrap, Jackson claimed that her father always intended for his children, including brothers Prince and Bigi Jackson, to receive “income from the Trust on their respective twenty-first birthdays.” However, as the document highlighted, “Those dates have all long passed.”
“More than 17 years after his passing, Michael Jackson’s family trust remains unfunded,” the filing stated. “In 2011, Executors informed the Court they ‘are contemplating and do intend to file a separate Petition for Preliminary Distribution.’ Fifteen years later, Michael’s beneficiaries are still waiting.”
“Paris respectfully submits that the Estate’s wealth is a testament to the singular talent and incredible work ethic of her father,” the document continued. “That said, Executors’ contributions to the Estate’s liquidity, including the restructuring of debt, certain high-risk entertainment projects, and principally the selling off of assets, have produced considerable amounts of cash. Executors, however, have never presented any plan for funding the Michael Jackson Family Trust to the Court. That needs to change.”
Later on in the filing, Jackson claimed that she and her siblings received “lesser amounts dictated by the remaining Executor, who use[d] this power to deter them from checking his abuses.”
“Michael also intended for each sibling to begin receiving outright principal distributions from the Trust on their respective thirtieth birthdays,” the document added. “That milestone is fast approaching. Prince turns 30 in four months, Paris turns 29 in April, and Bigi turns 25 in February.”
Per the filing, Jackson’s daughter raised “the unfunded trust as an issue a year ago” in a separate legal document, alleging that the executor had “failed to take action.”
Jackson’s legal team argued that her father’s estate has generated a significant amount of money thanks to various business deals and property sales, including the sale of its interest in EMI Music Publishing, the sale of Neverland Ranch and a deal with Sony regarding the singer’s music and IP assets. Her attorneys claimed that this fiscal reality made it possible for them to partially distribute funds to the family trust.
“Indeed, Paris is informed that, even when potential liabilities are taken into account, the Estate holds approximately $600 million in distributable cash, not to mention any cash that may be held at the entity level,” the document claimed. “Any other concerns regarding outstanding liabilities can be handled through appropriate refunding agreements with the trustee and, if needed, the beneficiaries.”
In response to the filing, the Michael Jackson Estate told People that it was unable fully fund the trusts in-questions until other legal matters were resolved, including litigation with the Internal Revenue Service, which sought $700 million in taxes and penalties from the estate.
“The Estate was able to secure a ruling to significantly reduce that amount, but the matter has not been settled and could still change,” the late singer’s estate said in a statement. The estate also slammed the claim that it was withholding or reducing payments to Jackson’s beneficiaries as a “complete fabrication,” adding, “None of his children receive a distribution until they are in their 30s.”
