Shamone man, pay those kids!
Probate Shows That MJ Estate Is Worth $600 Million
Mr. Jackson’s poor estate planning has put his family through years of high-cost litigation and caused $200M in estimated estate taxes. But UltraTrust.com has this financial advice for 2013.
More than three years after the death of Michael Jackson, the trust fund for his children, Prince, Paris, and Blanket, ages 15, 14, and 10, has to yet be dispersed. His estate is $600 million and Estate Street Partners (ESP) has this advice in Feb 2013 for others to avoid a Jackson-like disaster. Rocco Beatrice, Managing Director of ESP, founders of the UltraTrust irrevocable trust, explains that “because of poor estate planning Michael’s family will have to still wait years until his probate, estate taxes, creditors’ claims, and other legal battles are finalized.”
Mr. Beatrice studied in detail Jackson’s estate plan and graded it a “D Minor”. According to the NY Daily News, Mr. Jackson crafted a “pour-over” will and revocable trusts for each of his children and Katherine, his mother and the guardian of his children.
“A will is only good for stating who the guardian of the children will be. Other than that, it’s a poor way to pass on assets, especially significant ones like Mr. Jackson had,” clarifies Mr. Beatrice.
The “pour-over” designation basically describes the will as one that pours over the assets into one or more trusts after death.
So how does all this legal mumbo-jumbo affect MJ’s kids?
For the Jackson estate, the assets still have not poured into any fund. The children are receiving almost a seven-figure allowance – annually. This includes the mansion, private schooling at the famous Buckley School near Beverly Hills with a yearly $29,000 tuition and vacations. These expenses amount to $70,000 per month according to the NY Daily News.
Family members are wondering where all the money is going. According to the NY Daily News (see sources), they are worried that people are stealing money.
“If Mr. Jackson utilized irrevocable trusts like Steve Jobs, the family could be using their share right now. No waiting, no estate taxes, no public scrutiny, no courts, and asset protection,” states Mr. Beatrice.
Can’t blame them for being concerned about stealing, it’s almost inevitable that SOMEONE may be tempted to put their hand all in the cookie jar.
A seven-figure allowance isn’t exactly destitute, but when you’re supposed to be paid 10 or 20 times that it doesn’t quite add up.
Hopefully MJ’s brood, especially Paris, can keep their isht together long enough to enjoy the fruits of their daddy’s labor before they turn into the next Lohan family
Image via WENN