Michael Jackson owed over $500M at the time of death
Court documents reveal a whopping $500M debt and more in Michael Jackson's name when he died
Michael Jackson's children have been unable to access funds from his estate since he died in 2009.
His children, Prince, Paris, and Bigi Jackson, who are beneficiaries of his estate, were also left with the news of crumbling debt under their father's name due to unresolved tax and legal issues, People reported.
As per recent court filings filed in Los Angeles, Jackson owed over $500 million to creditors who had lodged more than 65 claims at the time of death.
Jackson, who sold more than 400m records during his career, faced many lawsuits globally following claims from creditors— leading to further legal disputes.
Jackson's estate managed to get rid of some debt by signing a $750 million deal with Sony to restructure debt related to music publishing rights at reduced interest rates and allowing Sony to acquire Sony/ATV.
Even after the negotiation, Jackson's estate owes a large sum of money due to challenging business, tax and legal issues that the executors and their counsel continue to deal with, according to the petition.
Page Six reported that court documents previously obtained revealed that a tax audit found the estate was issued a notice because it 'undervalued its assets' and 'owed $700 million in taxes and penalties.'
The estate currently awaits a pending final decision on a victory in a 2021 court battle with the IRS.
However, Jackson's family still receives substantial support amid the financial complexities.
“The estate has a very cooperative relationship with Michael’s children and whenever they need anything, the estate works with them to ensure that they are very well taken care of, just as Michael would have wanted.”
As per The Los Angeles Times, Jackson owed the huge debt because of extensive charitable donations, legal expenses and extravagant purchases, ranging from jewellery, gifts, travel, art and furniture to name a few.
Just three months before he died, prosecutors in his sex abuse trial dubbed him a 'shopaholic' on the brink of bankruptcy.