Michael Jackson's inheritance to his offspring could be less than half what is expected as the other half is due to the Internal Revenue Service (IRS). If IRS won the legal battle of its tax claims against Michael's estate, a remaining $300 million worth of inheritance remains.
Prince, 20, Paris, 18, Blanket, 14, and with their paternal grandmother, Katherine reportedly faces a legal battle with the IRS over a $700 million tax bill that could make their inheritance 50% less valuable The legal battle IRS and Michael's estate executors, John Branca and John McClain, continues in the U.S. tax court in LA, according to Bloomberg.
IRS reportedly claims that Michael Jackson's estate owes the government more than $500 million in taxes and $200 million worth of penalties, as reported by the Wall Street Journal. The court's verdict is expected to be revealed in a few weeks where a total of $700 million may be subtracted against Michael Jackson's estate. Michael's unexpected death in 2009 led the executors to file documents claiming that the pop icon's image was worthless caused by high-publicized allegations of drug use and child abuse. In fact, executors claimed then that Jackson's estate and image were only worth $2,105 at the time of his death.
Despite the said value, IRS lawyers initiated a court battle in 2013, alleging that the executors grossly undervalued Jackson's assets. According to the IRS, Michael's current value is worth $161 million. Further, it estimated that the gross value of Jackson's assets is $1 billion and $700 million of the total value is owed to the IRS because of penalties and back taxes.
Therefore, if IRS wins the case, the tax bill of $700 million against Jackson's estate would mostly wipe out much of his children's inheritance that will cost a financial crisis. The children of the legendary musician are reportedly due to be paid their inheritance in installment basis, beginning from the time they turn the age of 21.
Michael, who was nearly bankrupt, died back in 2009 at the age of 50 who even planned a career comeback. The recording artist's personal physician, Dr. Conrad Murray, was convicted of involuntary manslaughter. Murray was accused of administering a lethal dose of anesthesia to Michael that caused his death due to a fatal overdose of propofol and lorazepam.© 2019 Mstars News, All rights reserved. Do not reproduce without permission.