It has been almost eight years since the King of Pop passed away, and the Michael Jackson Trust is likely worth more than $1 billion, which his children are receiving in disbursements. The IRS, however, is taking Jackson’s executors to court, alleging that $702 million of the inheritance is owed in penalties and back taxes. Under California law, an estate tax filing is supposed to represent a person’s assets on the day they die, which includes a star’s name and likeness. Specifically, the IRS is claiming that Jackson’s likeness had a value of $434 million, whereas his estate claimed it was worth only $2,105 due to his negative coverage in the press. John Branca was the guy responsible for Jackson’s record deals in the thirty-seven years before his death, so it comes as no surprise that he was appointed executor of the late singer’s estate. Branca has been praised for his hand in one of the most remarkable financial and image resurrections in music, grossing the Jackson estate upwards of $500 million after his death. The IRS took notice. Now, Jackson’s personal effects are limbo, creating hardship on his children, but Branca has vowed to not let this IRS feud tarnish his image and his cherished friendship with the King of Pop.
See Devin Leonard, Michael Jackson Is Worth More than Ever, and the IRS Wants Its Cut, Bloomberg Businessweek, February 1, 2017.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
