Michael Jackson’s estate is at risk of being completely depleted among ongoing court cases and IRS disputes. The estate that is estimated to be valued at $778 million is at further risk of being wiped out while family members add to the turmoil.
First and foremost, the estate is threatened by the outcome of the sexual abuse case. Wade Robson and James Safechuck accused the deceased singer of abusing them when they were children.
The pair shared details of the alleged abuse in the HBO documentary titled ‘Leaving Neverland.’ Robson and Safechuck both have maintained the claim that the King of Pop groomed them. However, the Michael Jackson estate claims that the allegations are false.
If the pair wins the lawsuit, they would undoubtedly be entitled to a massive settlement that the Michael Jackson estate will be forced to pay. The estate might even be compelled to liquidate its assets to pay the sum. The impending verdict is not the only legal trouble that puts the estate at risk.
Another infamous lawsuit that the estate is fighting is one with the IRS. The agency has a long-standing claim that the estimate of the singer’s assets is likely much more than what has been disclosed. In 2o21, Judge Mark Holmes ruled that Jackson’s name and likeness were worth $4.2 million, according to a report by The New York Times.
On the other hand, the IRS had valued the singer’s estate to cost $161 million. Paris Jackson, the singer’s daughter, previously accused the executors of his estate of mismanaging her father’s estate.
John Branca and John McClain, the executors, denied the claims while reevaluating just how much money the star’s daughter had received to date. Paris “has received roughly $65 million from the Estate in benefits,” according to documents obtained by E! News.
The singer’s estate attorneys even claimed that Paris was the family member who “has benefited more than anyone.”
The star’s mother is fighting a legal battle of her own. Katherine Jackson stood firm against the Sony/Mijac catalog deal.
The singer’s mother claimed that the deal in itself was a violation of her son’s will. Then comes the question of the debt rumors surrounding the late star. The star was reportedly $500 million in debt at the time of his death. Several of the star’s associates have gone up against his estate to claim settlements.
“The estate is already bleeding money,” an insider has come forward to share. “If they don’t find a way to end these cases soon, Michael’s fortune could disappear completely,” they added (via Economic Times).
