Planned trust fund for Michael Jackson's children remains empty three years after King of Pop’s tragic demise By James Desborough / NEW YORK DAILY NEWS PUBLISHED: MONDAY, SEPTEMBER 3, 2012, 2:00 AM
In the meantime, Prince, Paris and Blanket live on a family allowance tightly controlled by estate executors and overseen by a judge.
LOS ANGELES — Their dad was the King of Pop, but Michael Jackson’s three kids remain paupers on paper.
The planned trust fund for Prince, Paris and Blanket remains empty three years after Jackson’s tragic demise, despite almost $600 million generated posthumously from Jackson’s music, legendary likeness and salvaged assets.
Lawyers and accountants are still sorting through the singer’s towering pile of debts and legal bills, and the process could take another two to five years, one lawyer told the Daily News.
In the meantime, Jackson’s kids live on a family allowance tightly controlled by estate executors and overseen by a judge.
“The probate is still pending, and although almost all of Michael’s personal debt has been or is about to be paid in full, the estate is technically still in debt,” estate lawyer Howard Weitzman said. “Once all of the creditors’ claims, taxes and pending litigations have been resolved, the trusts will be funded per court order.”
He declined to speculate on the size of the leftover fortune expected to flow into the trust fund.
“(It’s) too early to speculate on any precise number for a value. It will be a substantial number, I’m certain,” Weitzman said.
The “Michael Jackson Family Trust” calls for the singer's three kids to share 50% of the trust balance, with the other half going to the Gloved One’s mother, Katherine Jackson, during her lifetime.
Katherine — the kids’ 82-year-old guardian and co-estate administrator — has not received a dime from her portion of the trust, either.
She, too, remains on an allowance, and the financial situation has sparked issues among some members of the Jackson clan, who went to war over Katherine this summer.
Michael’s disinherited brothers Randy and Jermaine and sisters Janet and Rebbie whisked Katherine away to an Arizona spa for “health reasons” and demanded estate executors John Branca and John McClain resign, citing alleged fraud.
Paris, 14, waged a scathing Twitter campaign to get her grandmother home, and a judge temporarily stripped Katherine of guardianship.
Michael’s siblings claimed their actions weren’t motivated by money, but another source told The News some relatives want to accelerate Katherine’s access to Michael’s cash because she most likely would share the wealth with them before she dies.
“To some of Katherine’s children, this is a shocking situation. They see on paper that Michael has made $600 million and cannot understand why all of it is not going to the family,” a separate source told The News. “This has been the case for a long time. They always think the worst is happening and people are taking money.”
Michael’s children may be broke on paper, but they enjoy a lavish lifestyle in a gated mansion with private schooling, round-the-clock security and vacations — all at a cost of more than $70,000 a month.
In the long term, Prince, 15; Blanket, 10, and Paris will end up multimillionaires thanks to their dad’s enduring popularity, his purchase of a 50% stake in the Sony/ATV music catalogue that owns much of the Beatles’ iconic music and shrewd business deals by his estate.
Since Michael’s death, the executors have turned his legacy into a moneymaking machine with lucrative music, theatrical and merchandising deals.
On Michael’s orders, Prince, Paris and Blanket will each have to wait until they’re 21 to touch their riches — but by then they will land whopping regular handouts.
They get lump sums at ages 30, 35 and 40, the trust states.
Blanket could walk off with $250 million when he reaches the big 4-0.
In the meantime, the kids appear to be thriving.
Since Michael died, “multiple millions of dollars from (estate) earnings have been spent for the children and for Mrs. Jackson as well,” Weitzman said.
Katherine Jackson’s lawyer Perry Sanders also is seeking an audit of the estate’s earnings.
“My audit is being done to see the details of where the money is coming from and where it is going,” he said. “The beneficiaries should be entitled to all detailed documentation so they can see what their money is paying for.”
For more: The planned trust fund for Prince, Paris and Blanket remains empty three years after Jackson’s tragic demise, despite almost $600 million generated posthumously from Jackson’s music, legendary likeness and salvaged assets.
Lawyers and accountants are still sorting through the singer’s towering pile of debts and legal bills, and the process could take another two to five years, one lawyer told the Daily News.
In the meantime, Jackson’s kids live on a family allowance tightly controlled by estate executors and overseen by a judge.
“The probate is still pending, and although almost all of Michael’s personal debt has been or is about to be paid in full, the estate is technically still in debt,” estate lawyer Howard Weitzman said. “Once all of the creditors’ claims, taxes and pending litigations have been resolved, the trusts will be funded per court order.”
He declined to speculate on the size of the leftover fortune expected to flow into the trust fund.
“(It’s) too early to speculate on any precise number for a value. It will be a substantial number, I’m certain,” Weitzman said.
Incredibly, estate lawyers still have to deal with upward of $100 million in financial responsibilities.
The “Michael Jackson Family Trust” calls for the singer's three kids to share 50% of the trust balance, with the other half going to the Gloved One’s mother, Katherine Jackson, during her lifetime.
Katherine — the kids’ 82-year-old guardian and co-estate administrator — has not received a dime from her portion of the trust, either.
She, too, remains on an allowance, and the financial situation has sparked issues among some members of the Jackson clan, who went to war over Katherine this summer.
Michael’s disinherited brothers Randy and Jermaine and sisters Janet and Rebbie whisked Katherine away to an Arizona spa for “health reasons” and demanded estate executors John Branca and John McClain resign, citing alleged fraud.
Paris, 14, waged a scathing Twitter campaign to get her grandmother home, and a judge temporarily stripped Katherine of guardianship.
Michael’s siblings claimed their actions weren’t motivated by money, but another source told The News some relatives want to accelerate Katherine’s access to Michael’s cash because she most likely would share the wealth with them before she dies.
“To some of Katherine’s children, this is a shocking situation. They see on paper that Michael has made $600 million and cannot understand why all of it is not going to the family,” a separate source told The News. “This has been the case for a long time. They always think the worst is happening and people are taking money.”
Michael’s children may be broke on paper, but they enjoy a lavish lifestyle in a gated mansion with private schooling, round-the-clock security and vacations — all at a cost of more than $70,000 a month.
In the long term, Prince, 15; Blanket, 10, and Paris will end up multimillionaires thanks to their dad’s enduring popularity, his purchase of a 50% stake in the Sony/ATV music catalogue that owns much of the Beatles’ iconic music and shrewd business deals by his estate.
Since Michael’s death, the executors have turned his legacy into a moneymaking machine with lucrative music, theatrical and merchandising deals.
On Michael’s orders, Prince, Paris and Blanket will each have to wait until they’re 21 to touch their riches — but by then they will land whopping regular handouts.
They get lump sums at ages 30, 35 and 40, the trust states.
Blanket could walk off with $250 million when he reaches the big 4-0.
In the meantime, the kids appear to be thriving.
Since Michael died, “multiple millions of dollars from (estate) earnings have been spent for the children and for Mrs. Jackson as well,” Weitzman said.
Katherine Jackson’s lawyer Perry Sanders also is seeking an audit of the estate’s earnings.
“My audit is being done to see the details of where the money is coming from and where it is going,” he said. “The beneficiaries should be entitled to all detailed documentation so they can see what their money is paying for.”
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The executors of Michael Jackson's estate have requested $30 million for a trust fund designated for the singer's mother, Katherine, and his three children, Prince, Paris and Blanket. The executors, attorney John Branca and music executive John McClain, have also requested permission on behalf of Katherine Jackson to sell their family compound in Encino, California and purchase a new home. A court hearing for the case has been set for September 28th.
The executors of the Jackson estate have reported over $310 million in gross revenue in the last year from album sales, merchandising, licensing and other revenue streams. The singer had debts of more than $400 million at the time of his death in 2009, but the estate has reported that they have paid down $159 million of that debt.
Read more:
Micheal Jackson Remembered
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May 31st, 2010 8:13 AM by Free Britney
His mother, Katherine Jackson, gets the use of 40 percent during her lifetime (when she dies, the remainder goes to the kids), and 20 percent goes to charity.
The kids' 40-plus percent isn't going to be seen for decades, though.
Prince, Paris and Blanket have no control of the money until they are 30. Until then, they only receive an allowance, determined solely by the estate's trustee.
If they screw up, Omer Bhatti gets it all. Just kidding.
At age 40, they get whatever's left. The late icon's will refers to the trust he set up but the trust document itself is separate, and has just now been released.
As for how much the kids will get? That amount, along with the value of the estate, grows every month, thanks to executors John Branca and John McClain.
Jackson's June 2009 death sparked a new generation of interest in his music, and various tributes, movies and song releases continue to rake in the dough.
Read More:
wills.about.com
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Trust Fund for Michael Jackson's Kids Remains Empty: Report By Sheila Marikar | ABC News Blogs – Mon, Sep 3, 2012 2:13 PM EDT
Although Michael Jackson has made nearly $600 million since his 2009 death, the planned trust fund created for his three children remains empty, according to the New York Daily News.
The paper reported today that lawyers and accountants believe it could take years before they’re able to sort through all of Jackson’s debts and legal bills and put money in the trust fund. In the meantime, Paris Michael, Prince Michael, and Prince Michael II (better known as Blanket) live on a $70,000 per month family allowance controlled by estate executors and overseen by a judge. Katherine Jackson, who was re-established as their legal guardian in August after a guardianship dispute earlier this summer, has control over those funds.
The Daily News said Jackson’s family trust calls for the King of Pop’s three kids to share 50-percent of the trust balance, while the other half will go to Katherine Jackson during her lifetime. The 82-year-old Jackson family matriarch also has yet to receive anything from the trust.
Meanwhile, a batch of emails obtained by the Los Angeles Times shows that the people plotting Michael Jackson’s 2009 comeback were seriously concerned about his stability. 250 pages of messages between executives at the Anschutz Entertainment Group (AEG), the group financing Michael Jackson’s 50-show engagement in London, describe the pop king as “drunk and despondent” and an “emotionally paralyzed mess.” The emails will likely factor into two lawsuits set to go to trial next year.
For more: abcnews.go.com
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Michael Jackson's Executors Request Permission to Fund Family Trust With $30 Million, Sell Encino Home
Last week the co-executors of Michael Jackson's estate, John Branca and John McClain, filed a petition with the Los Angeles probate court asking the probate judge for permission to fund the Michael Jackson Family Trust with $30 million in revenues generated by the estate. This is a testament to the money-making machine Michael Jackson's estate has become despite the fact that the King of Pop died millions of dollars in debt. The Michael Jackson Family Trust provides that 50% of the requested $30 million will be set aside for Jackson's three minor children, Michael Joseph "Prince" Jackson, Jr., Paris Katherine Michael Jackson, and Prince Michael "Blanket" Jackson II, and the remaining 50% will be set aside for the benefit of his mother, Katherine Jackson.
The petition also requests permission for the co-executors to sell an Encino, California home owned by the estate. Katherine Jackson and the children had been residing in the home since Michael's death but have moved into a temporary residence in Calabasas, California, while the Encino home undergoes renovations. Apparently Katherine and the children do not want to return to Encino and instead want the estate to purchase them a new home.
A hearing on the petition is set for Wednesday, September 28, so stay tuned for updates.
Read More: http://wills.about.com 2011/09/21
Michael Jackson's Family Asks for $30 Million Trust Fund
It was revealed in a report from Reutersyesterday that the executors of the late Michael Jackson’s estate have submitted a request to the Los Angeles Superior Court to have $30 million be set aside from the estate for its beneficiaries.
The beneficiaries Jackson named are his mother Katherine, 81, and his three kids Prince, 14, Paris, 13, and Blanket, 9. The court hearing will take place Sept. 28.
Jackson’s mom has also stated she’s looking to move away from Encino, Calif., and has thereby requested to sell their vast Hayvenhurst Estate home and buy a more modest apartment replacement home.
Jackson was almost $400 million in debt when he died two years ago. However, those working in his estate have helped to reduce that number by $159 million and have also reported an gross revenue increase of $310 million as of the end of 2010.
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undEstate wants $30 million for singer's mother and three children - 14/09/2011
The executors of the Jackson estate have reported over $310 million in gross revenue in the last year from album sales, merchandising, licensing and other revenue streams. The singer had debts of more than $400 million at the time of his death in 2009, but the estate has reported that they have paid down $159 million of that debt.
Read more:
Micheal Jackson Remembered
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Trust fund request made for Michael Jackson beneficiaries - 14/09/2011
(Reuters) - The executors of Michael Jackson's estate asked a judge on Tuesday to allow them to put aside $30 million in a trust fund for the late singer's mother and three children, who are the designated beneficiaries.
The executors, attorney John Branca and music executive John McClain, also requested permission from Los Angeles Superior Court Judge Mitchell Beckloff, who is overseeing matters related to the Jackson estate, to sell the longtime Jackson family compound in the Los Angeles suburb of Encino.
A petition from attorneys for the executors said that Katherine Jackson, the late "Thriller" singer's mother, wishes to "sell the Hayvenhurst property (in Encino) and purchase another residence as a replacement."
A court hearing in the case is set for September 28.
The executors for the Jackson estate have reported that it has generated more than $310 million in gross revenue through the end of last year from album sales, merchandising and other products.
When Jackson died, he had debts of more than $400 million, and his estate administrators said earlier this year that they had used $159 million to pay down those debts.
Jackson designated Katherine Jackson, 81, and his three children, Prince, 14, Paris, 13, and Blanket, 9, as the beneficiaries of his estate.
The singer died at age 50 on June 25, 2009, from what authorities describe as an overdose of the anesthetic propofol and other drugs. The singer's physician at the time, Dr. Conrad Murray, has been charged with involuntary manslaughter in Jackson's death and has pleaded not guilty.
(Reporting by Alex Dobuzinskis: Editing by Cynthia Johnston)
http://www.reuters.com
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Michael Jackson - Jackson Kids Won't Access Trust Fund Until 40Th Birthdays
MICHAEL JACKSON left his children a $33 million (£22 million) trust fund each - but they won't be able to gain full control of their fortunes until they are 40 years old.
The Thriller hitmaker set up the Michael Jackson Family Trust fund in 1995, before he welcomed his three children, Prince, 13, Paris, 12, and eight-year-old Blanket.
Jackson signed off the will in 2002 to ensure his children receive 40 per cent of his estate, while his mother Katherine gets another 40 per cent and the last 20 per cent is given to charity.
Despite dying with huge debts and spiralling money woes, the trustees put in charge of Jackson'sestate have managed to boost the superstar's fortune to a reported $300 million (£200 million) due to increased interest in the singer.
This means Jackson's three children are all in line for a $33 million (£22 million) private fortune, but will have to be provided allowances from the estate administrators until they are 21.
They will then have to wait until they are 30 to get access to a third of their trust fund, 35 for half, and will finally have full access at 40 years old.
The children's guarantor and grandmother Katherine will get her share up front, and her portion will be split between Prince, Paris and Blanket when she passes away.
The Trust Fund does not include any of the other members of the Jackson clan, according to Britain's News of the World
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Michael Jackson Kids' Trust Fund: Wisely Managed
For all that's been written of Michael Jackson's questionable financial decisions, it looks like he learned his lesson - and didn't want his kids to repeat his mistakes.
He left a fortune to Prince, Paris and Blanket, but with long, long list of strings attached. Under the trust he left for them, the kids get 40 percent of MJ's estate.
The kids' 40-plus percent isn't going to be seen for decades, though.
Prince, Paris and Blanket have no control of the money until they are 30. Until then, they only receive an allowance, determined solely by the estate's trustee.
Paris, Blanket and Prince will learn fiscal responsibility - something that their father showed limited ability to handle despite accumulating such a vast fortune.
When each of the kids turns 30, the trustees must then give them a third of their share outright. When the kids reach 35, they get half of their share outright.If they screw up, Omer Bhatti gets it all. Just kidding.
At age 40, they get whatever's left. The late icon's will refers to the trust he set up but the trust document itself is separate, and has just now been released.
As for how much the kids will get? That amount, along with the value of the estate, grows every month, thanks to executors John Branca and John McClain.
Jackson's June 2009 death sparked a new generation of interest in his music, and various tributes, movies and song releases continue to rake in the dough.
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