Estate of Michael Jackson

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The Estate of Michael Jackson is a legal entity established following

Sony/ATV Music Publishing' catalogue, and debts of $331 million.[3] The guardianship of his three children is given to his mother, Katherine, or if she is unable or unwilling, to singer Diana Ross.[4] Jackson's will allocates 20% of his fortune as well as 20% of money made after death to unspecified charities.[5]

In 2012, in an attempt to end a family dispute, Jackson's brother

US$1.5 billion. The estimate makes Jackson's share of Sony/ATV worth $750 million, from which Jackson would have had an annual income of $80 million. In September 2016, a deal was finalized for Sony's acquisition of Jackson's share of Sony/ATV from the Jackson estate for $750 million.[9]

In 2016, Jackson's estate earned $825 million, the highest yearly amount for a celebrity ever recorded by Forbes. In July 2018, Sony/ATV bought out the Jackson estate's 10% stake in EMI for $287.5 million.[10]

Earnings

In 2016, Forbes estimated annual gross earnings by the Jackson Estate at $825 million, the largest ever recorded for a celebrity, mostly due to the sale of the Sony/ATV catalog.[11] In 2018, the figure was $400 million.[12] It was the eighth year since his death that Jackson's annual earnings were reported to be over $100 million, thus bringing Jackson's posthumous total to $2.4 billion.[13] In 2020, Forbes recognized Jackson as the top-earning dead celebrity each year from his death to 2020 except 2012.[14][15]

Taxation of estate

The estate administrators and the IRS estimated portions of the estate differently.[16][17] The estate argued that its total value was $5.1 million, while the IRS initially estimated the estate's value at more than $500 million and then reduced it to $481.9 million.[18] The IRS also proposed "an additional $197 million in penalties, including a gross valuation misstatement penalty."[16][17] A major part of the dispute related to the value of Jackson's likeness; the estate claimed a value of just over $2,000; while the IRS initially valued it at over $434 million.[17] Other disputes centered on the value of Jackson's interest in a trust that owns some songs of his and the Beatles;[17] the value of Jackson's share of the Jackson 5 master recordings rights; and the values of various stocks, bonds, and cars owned by Jackson.[17][19]

In 2013, the estate filed a U.S. Tax Court petition claiming that the IRS overestimated the value of the estate's assets.[19][20] In 2021, the Tax Court issued a ruling in favor of the estate, ruling that the estate's total combined value of the estate was $111.5 million and that the value of Jackson's name and likeness was $4 million (not the $61 million estimated by the IRS's outside expert witness).[18]

References

  1. ^ Bone, James. Jackson's mother removed as administrator of his estate, The Times, July 6, 2009.
  2. ^ Garber, Julie. "Michael Jackson's Will vs. the Michael Jackson Family Trust" Archived 2014-04-12 at the Wayback Machine, about.com, July 6, 2009.
  3. ^ MacAskill, Ewen. Jackson's body to be put on public display at Neverland, The Guardian, July 1, 2009.
  4. ^ "Michael Jackson's Will Cuts Out Ex-Wife Deborah Rowe", Associated Press, July 1, 2009; Nasaw, Daniel. "Jackson's ex-wife cut out of will", The Guardian, July 1, 2009.
  5. ^ "Michael Jackson's nephew to share custody of kids". CBC News World. August 22, 2012. Retrieved May 6, 2013.
  6. ^ "Jermaine calls for an end to Jackson family feud". BBC News. August 2, 2012. Retrieved May 31, 2015.
  7. ^ "Michael Jackson nephew made co-guardian of children". BBC News. August 23, 2012. Retrieved May 31, 2015.
  8. ^ Brown, David and Lewis, Leo. Michael Jackson: finances will take years to unwind, The Times, June 27, 2009.
  9. ^ Ed Christman. [1], Billboard, September 30, 2016.
  10. ^ "Sony Completes Acquisition of Michael Jackson Estate's Share of EMI Music Publishing". Billboard.
  11. ^ Greenburg, Zack O'Malley (October 14, 2016). "Michael Jackson's Earnings: $825 Million In 2016". Forbes. Retrieved December 11, 2016.
  12. ^ Greenburg, Zack O'Malley; Robehmed, Natalie (October 31, 2017). "The Highest-Paid Dead Celebrities of 2018". Forbes. Retrieved October 31, 2018.
  13. ^ Greenburg, Zack O'Malley (October 30, 2019). "The Real Reason Behind Michael Jackson's Earnings Drop". Forbes. Retrieved November 28, 2019.
  14. ^ "Michael Jackson tops list of top-earning dead celebs at $60 mn, Elvis Presley retains 2nd spot". The Economic Times. November 1, 2019. Archived from the original on January 10, 2020. Retrieved November 28, 2019.
  15. ^ Berg, Madeline (November 13, 2020). "The Highest-Paid Dead Celebrities of 2020". Forbes. Retrieved November 30, 2020.
  16. ^ a b "IRS: Michael Jackson's estate owes $702M in taxes, penalties". United Press International (UPI). 8 February 2014. Retrieved 11 February 2014.
  17. ^ a b c d e Sheets, Andy (February 2014). "Off the Beaten Tax: IRS Says Jackson's Estate Undervalued by $ 1 Billion". Tax Notes Today. 2014 TNT 28–4.
  18. ^ a b Michael Cohn, Michael Jackson estate wins smaller tax bill in court, Accounting Today (May 4, 2021).
  19. ^ a b Zajac, Andrew (20 August 2013). "Michael Jackson's Estate Challenges IRS in Tax Dispute". Bloomberg Luxury. Retrieved 11 February 2014.
  20. ^ Sheets, Andy (2013). "Off the Beaten Tax: Sex, Death, and 'Billie Jean'". Tax Notes Today. 2013 TNT 169–6.
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