Even though the Michael Jackson Estate has experienced debt, it turns out they still made a pretty penny after Jackson’s death in 2009. It’s been five years since the King of Pop left the world, and apparently during that time Michael Jackson’s estate made a big pay-day .
The impressive figure of $600 million is in addition to the $18 million that Jackson’s estate currently holds. The first figure is the alleged money the estate has earned in revenue. These figures came from documents that were filed in a California court.
According to court documents, Michael Jackson’s beneficiaries are his children Paris, Prince and Blanket, who currently live an $8 million dollar luxury lifestyle per year. As previously reported , Jackson’s mother Katherine spent $3 million on education for the children and $300,000 on various vacations, with one trip costing $250,000. The family also needed security for the three children which cost up to $600,000.
This doesn’t include the money spent on a rental mansion while renovations were made to Katherine’s home. According to the documents, Katherine spent $28,500 a month on rent while her home was being worked on.
Currently, the Michael Jackson estate is in a battle with the IRS over an analysis that was made about Jackson’s supposed assets. Right now, the Jackson Estate is accusing the IRS of inflating the amount of money that Jackson’s estate earned and owes back in taxes. According to reports, the estate owes $505 million in unpaid taxes due to undervaluing assets. The government has opted to add a 40 percent penalty for the withheld information.
As a result, Michael Jackson’s estate is facing a 40 percent penalty of $200 million, plus the $700 million tax bill that hasn’t been paid.
The Beatles catalogue that Michael Jackson owned also came into the discussion. It is said that the Beatles’ tax attorney David “Bruce” Spizer accused Jackson’s estate of undervaluing how much money was made from the Beatles royalties that Jackson owned. At the time, he said, “No one could value that collection at zero with a straight face.”
Spizer believes that the IRS has inflated the worth of the Beatles catalogue, but he made an educated guess that the songs are worth an estimated $300 million.
“For the Estate to list the value at zero, they lose all credibility,” said Spizer.
Looks like the confusion over Jackson’s assets will continue.
[Image credit: Sony Music Entertainment]
