Thursday, February 20, 2014

The Michael Jackson Estate Financial Report Reveals How Money is Spent

From Radar Online today: Details on the Estates financial report. "At the time of Michael’s death, he was  500 Million in debt named in more than half a dozen lawsuits, and 65 creditors’ claims were filed after he died."   They have resolved them all favorably all but 7 pending creditor claims (Including the IRS debt) Looks like they are doing a great job and Katherine and Michael's children are living very comfortable. Lets hope the others claims can be resolved in their favor. Also Because of the pending claims they are asking 1 year extension for probate not to be closed yet. That means they will still be overseen by the probate court. From what I understand, after the debt is cleared  and they are removed from probate they will be able to disburse more money into the Children's Trusts and the charity Trust as well. ~ Qbee

Revealed: Court Filings Detail How The Michael Jackson Estate Is Spending Its Fortune

"At the time of Michael Jackson‘s death in 2009, the singer was $500 million in debt, but court documents reveal that three years later, the estate had generated more than $600 million and his mother Katherine had received $1.3 million in her yearly allowance and a $6 million loan.

Court documents — filed by estate executors and obtained exclusively by – expose the financial windfall that has been generated since his tragic death and provides insights as to the cost of raising the King of Pop’s three kids.

In 2012, according to financial records reviewed by Radar, the estate paid $564,301.57 for bodyguards and security for Katherine and her three grandchildren, Prince Michael, Paris and Blanket. (Radar has chosen not to disclose the names of the companies, due to privacy concerns.)

The matriarch of the Jackson family, 83, was paid $1.386 million in allowance from her late son’s estate in 2012 and was also loaned more than $6 million from the estate, which also doled out more than $3 million in allowance to Michael’s three children for education and $10,000 in orthodontics.

The family has been living in a $26,000 rental house in Calabasas, while the Hayvenhurst house continues to be renovated.

The monthly electric bill for the Calabasas mansion is $2,500 and the cost for living (including utilities) in the rental for in 2012 was $418,013.69.

Renovations for the Encino mansion were $154,323.53 in 2012, including a $12,000 home theater renovation project, $3,225 studio repair and pond keeper services for $814.43.

Even though no one was living at the house in 2012, utilities including phone, gas, and electricity totaled $35,842.05. Storage and moving fees for 2012 added up to a whopping $806,872.52.

The co-executors, John Branca and John McClain, under the law in California, are required to submit detailed financial records of the execution of Michael Jackson’s estate while it’s still in probate court.

The executors reveal that “they have made significant progress in resolving creditors’ claims and pending litigation reducing the estate’s debt, and solidifying and establishing the MJJ Business as a lucrative and powerful entity in the entertainment industry, the estate is not yet in the condition to be closed.

“The executors have not yet resolved all of the creditors’ claims. There is litigation pending and there is an ongoing tax audit. Therefore, executors request that the time for administration of the estate be extended for one year after the court enters its’ order settling the account.”

At the time of Michael’s death, he was named in more than half a dozen lawsuits, and 65 creditors’ claims were filed after he died.

There are “currently seven active litigation matters in the United States which the executors and their legal team are defending. All other litigation has been resolved favorably for the estate either by court disposition or settlement for less than the amount demanded,” the court docs state."

Source: Jen Heger

Members of MJJCommunity  can discuss this with other fans in the "Trials and Tribulations" Forum

No comments:

Post a Comment

Thanks for reading. Feel free to share this article and your thoughts.