Unpaid Taxes Draining Michael Jackson’s Estate

Michael Jackson’s unexpected death has had devastating effects on millions of fans all over the globe, but even more on his family. And now, legal issues are arising that may also devastate his estate. According to a recent article in Rolling Stone, only a few months ago the IRS sued Jackson’s estate for over $700 million in unpaid taxes. The estate is contesting the tax bill in court, but if the court sides with the IRS, that money must be paid out of Jackson’s estate to the government – and not to those people Jackson chose to inherit his assets. Paying taxes is something everyone – living or dead, public figure or private citizen – has to deal with. California no longer has an inheritance tax, but in certain situations, Federal estate taxes (death taxes) still apply. All these responsibilities can take away a sizeable share of what could be passed on to the beneficiaries of an estate. That’s why careful planning always includes tax considerations, so there are no unpleasant surprises–like unpaid taxes–that can drain an estate or destroy a family’s future. I can help you work out ways to protect what you have now, so your estate will still have it after you’re gone. If you would like help with tax considerations, asset protection, or for any other estate planning questions, please contact us at 818.956.9200.