In a stunning turn in the saga surrounding Michael Jackson’s estate, court filings reveal that his three children — **Prince, Paris, and Bigi** — along with his mother Katherine, are currently blocked from receiving distributions from their trusts. The reason? A fierce, ongoing battle with the IRS over $700 million in alleged tax underpayments. People recently obtained the filing, which lays bare just how contentious the posthumous management of Jackson’s fortune has become.
According to the executors of Jackson’s estate, the trusts established under his will cannot be funded until a resolution is reached on the IRS’s claim that the estate undervalued its assets — particularly the value of his music catalog, *Mijac*. Page Six first reported the restriction. Although the estate says the children and Katherine have been receiving “family allowances” to cover their needs, they argue that releasing full trust funds before finalizing the estate’s valuation would expose them to massive tax liability.
Estate filings say trusts for Michael Jackson’s kids and mother can’t be funded until IRS dispute is resolved. — @People
The estate claims that a 2021 tax court ruling sided with them in part, rejecting the IRS’s alleged undervaluations. But the battle is not over: the IRS has challenged how the estate valued *Mijac*, insisting that it should have been appraised far higher. HipHopDX noted that until the final valuation is accepted, the executors argue they legally cannot disburse additional trust payments without risking huge exposure. That holds the children’s inheritance hostage.
Beyond the legal wrangle, this situation has inflamed tensions within Jackson’s family. Bigi, in particular, has been vocal in opposing his grandmother Katherine’s use of estate funds for legal bills tied to separate litigation. Page Six covered a related filing suggesting that Bigi challenged some of the estate’s transactions with Simone trust resources. For now, though, the executors maintain that the kids will be “very well taken care of” via allowances. The estate’s statement to People echoed that position.
Legal observers say this pause is unusual but not unprecedented. In high-stakes estates with unresolved IRS audits, executors often freeze distributions until tax liability is clearly defined. One attorney told Page Six that the estate cannot safely release billions until a conclusive valuation is accepted — otherwise, they may face retroactive tax assessments plus penalties. Meanwhile, critics question whether the estate is using the dispute as a cover to delay giving the children what Jackson intended in his will.
“The trusts can’t be funded until the estate and IRS settle,” says estate filing. — @HipHopDX
The stakes are enormous: Jackson’s estate has grown dramatically since his death, fueled by posthumous earnings, catalog deals, and ongoing licensing. Wikipedia’s entry on his estate reports that at the time of his death in 2009, Jackson had massive debts alongside valuable music rights and real estate. The estate’s executors — John Branca and John McClain — are under intense scrutiny as they balance preserving value against the legal claims and family expectations.
For Prince, Paris, and Bigi, the freeze is more than fiscal — it’s emotional. The children, now adults, have occasionally spoken about their father’s legacy and their role in it. But this legal limbo delays their ability to benefit from what was meant to be theirs. Social media and fan circles have erupted over the perceived injustice of heirs being blocked from their inheritance decades after Jackson’s passing.
Supporters of the estate argue that Jackson’s intention was for a structured trust system: a portion set aside for charity, a lifetime trust for Katherine, and the remainder for his children via sub-trusts. But because the IRS dispute has left the estate’s valuation unsettled, the executors contend that distributing trust assets prematurely would jeopardize the estate’s ability to pay back tax claims or absorb legal judgments. The People filing lays out this argument.
Supporters of the estate say holdings must be preserved until the IRS issue is resolved. — @People
Even as the trusts lie dormant, the estate continues to provide regular allowances to Katherine and the children. The executors claim that these payments are substantial and meant to maintain their standard of living until full trust funding can resume. That disclosure appears in the public filing. But many ask: how long is too long?
If the IRS and estate can’t reach consensus soon, the freeze may stretch further, potentially undermining trust in the estate’s management and giving ammunition to critics. Jackson’s children, heirs in name but beneficiaries in waiting, remain stuck in limbo — locked out of the funds that would provide security, autonomy, and the full legacy of their father’s creativity. For now, their cut is real — but temporarily suspended.
