Michael Jackson's children and their mother will no longer be able to receive funds from his trust until his estate resolves legal issues.
Prince, 27, Paris, 26, Bigi Jackson, 22, and their 94-year-old grandmother, Katherine, have all been temporarily removed from the King of Pop's trust.
According to court documents obtained by People, they won't get their money until the estate resolves an ongoing dispute with the Internal Revenue Service (IRS).
The legal trouble began when IRS officials issued a “deficiency letter” to the estate after a tax audit, claiming that the executors had “undervalued the assets” and owed “$700 million in taxes and penalties.”
The estate argued the ruling and won in 2021, but has since filed a motion to reconsider the value of the singer's back catalogue.
This means that the value of the estate for tax purposes is currently undetermined, and the beneficiaries of the trust cannot receive the funds until it is determined.
The documents state that the lawyers had asked for part of the estate to be put into a family trust, but the request was denied because it was not possible to determine “how much can be safely distributed at this time.”
The executor then proposed that Michael's beneficiaries receive the funds through a “family allowance”.
The move comes months after Sony Music Group reportedly bought half the music catalogue of the maker of hit song “Thriller” for $600m (£472m) in February.
Katherine is embroiled in a legal battle with the estate, which is trying to block what appears to be a business deal to sell the catalogue. She wants the estate to pay her legal costs incurred in fighting the deal, but the estate is resisting her demands.
Bigi, also known as Blanket, became involved in the case in March, filing a lawsuit to stop his grandmother from spending the estate funds.