The Michael Jackson estate has been under IRS review since 2009 because the government challenged the reported value of Jackson’s name, image, and music catalog. Although the Tax Court reduced some of the original claims in 2021, the valuation work has not fully concluded. As long as the final number remains uncertain, the estate cannot calculate the required charitable share and cannot fully fund the trusts that Jackson created for his children.
Because of this delay, the family has received a court approved allowance rather than full trust distributions. This allowance provides support for basic needs but does not transfer the inheritance that Jackson intended. The distinction is important. An allowance is temporary. A distribution is final. Many families are surprised to learn how easily a valuation question or an unresolved filing can postpone the receipt of the family’s inheritance.
The most significant development today involves objections raised by Paris Jackson concerning the estate executors. Her filings question whether the executors, who are attorneys, received compensation that exceeded what beneficiaries believe was appropriate. She also raised concerns about the estate paying substantial legal and administrative fees during a period when the beneficiaries themselves remained unable to receive their inheritance. These worries reflect a larger pattern that appears in many long running estates. When administration continues for many years, the cost of professional services grows. Beneficiaries often become frustrated when they see fees rising while distributions remain on hold.
Executors who are attorneys face a particular challenge. They hold a fiduciary role that carries strict duties. They may also hire legal counsel to assist with work that requires specialized expertise. Families sometimes fear that these dual roles create opportunities for unintended overbilling or unclear boundaries. Courts generally permit reasonable compensation, but the standard for reasonableness becomes more difficult to evaluate when an estate is unusually large or unusually complex. Without regular reporting and detailed accountings, disagreements can deepen quickly.
For ordinary families, several lessons come into focus. It is important to set expectations about compensation in the estate documents. It is wise to state whether an executor who is an attorney may also bill for legal services. It is equally important to require periodic accountings so that beneficiaries understand what is being paid and why. Transparency does not eliminate the workload of an executor, but it does reduce the potential for suspicion and conflict. Finally, families should provide for successors. If the original executor becomes overburdened or if the estate requires skills beyond that person’s expertise, a clear path for replacement prevents long term stagnation.
The Jackson estate is extraordinary in scale, yet the underlying issues are familiar. Delays, unclear communication, and confusion over fees can affect any inheritance. With thoughtful planning and clear oversight, families can prevent these problems from overshadowing the intent of their estate plan.
If you want to ensure your own estate avoids similar delays and disputes, now is the time to review your plan and speak with a professional who can help you create a clear and conflict resistant structure for your family.
