Michael Jackson’s Probate Reveals Secrets

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Offline mindseye

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Michael Jackson’s Probate Reveals Secrets

  • on: February 21, 2013, 06:34:10 PM
Michael Jackson’s Probate Reveals Secrets and an Estate of $600M, but His Children Haven’t Received a Penny, Says UltraTrust.com

http://news.yahoo.com/michael-jackson-probate-reveals-secrets-estate-600m-children-090219349.html;_ylt=A2KJ2UgkriZR2SMAgRDQtDMD

Mr. Jackson’s poor estate planning has put his family through years of high-cost litigation and caused $200M in estimated estate taxes. But UltraTrust.com has this financial advice for 2013.

Boston, MA (PRWEB) February 21, 2013
More than three years after the death of Michael Jackson, the trust fund for his children, Prince, Paris, and Blanket, ages 15, 14, and 10, has to yet be dispersed. His estate is $600 million and Estate Street Partners (ESP) has this advice in Feb 2013 for others to avoid a Jackson-like disaster. Rocco Beatrice, Managing Director of ESP, founders of the UltraTrust irrevocable trust, explains that “because of poor estate planning Michael’s family will have to still wait years until his probate, estate taxes, creditors’ claims, and other legal battles are finalized.”

Mr. Beatrice studied in detail Jackson’s estate plan and graded it a “D Minor”. According to the NY Daily News, Mr. Jackson crafted a “pour-over” will and revocable trusts for each of his children and Katherine, his mother and the guardian of his children.

“A will is only good for stating who the guardian of the children will be. Other than that, it’s a poor way to pass on assets, especially significant ones like Mr. Jackson had,” clarifies Mr. Beatrice.

The “pour-over” designation basically describes the will as one that pours over the assets into one or more trusts after death.

Since Michael Jackson’s death, the estate lawyers have decided hundreds of motions, matters, and claims. “When a person dies with even assets of $500,000, everybody wants a piece of the pie. The government wants the taxes, the creditors want their money, the lawyers, appraisers, and accounts involved with the probate want their fees, and lastly, the family gets their share,” explains Mr. Beatrice. “The reason Mr. Jackson’s assets have been tied up in probate court for so long is because there are many issues to sort out. Every single creditor has an opportunity to make and negotiate a claim, property has to be sold and/or maintained, and challenges have to be heard.”

For the Jackson estate, the assets still have not poured into any fund. The children are receiving almost a seven-figure allowance - annually. This includes the mansion, private schooling at the famous Buckley School near Beverly Hills with a yearly $29,000 tuition and vacations. These expenses amount to $70,000 per month according to the NY Daily News.

Family members are wondering where all the money is going. According to the NY Daily News (see sources), they are worried that people are stealing money.

“If Mr. Jackson utilized irrevocable trusts like Steve Jobs, the family could be using their share right now. No waiting, no estate taxes, no public scrutiny, no courts, and asset protection,” states Mr. Beatrice.

The Supreme Court ruled in Estate of Sanford v. Commissioner, 308 U.S. 39 (1939), that a transfer to a revocable trust is not a completed gift. This means that everything is subject to probate and estate tax.

ESP estimates the estate will be taxed about $200 million. “In a good estate plan, one can mitigate the estate tax altogether. The Jackson lawyers were likely more worried about their own paychecks than doing the right thing by Mr. Jackson. Tying up the Jackson estate in probate court is very profitable for Mr. Jackson’s attorneys and could have easily been avoided by using the Ultra Trust,” posits Mr. Beatrice.

An irrevocable trust, like the UltraTrust, should not be confused with a revocable trust. The revocable trust allows the grantor of the trust to change anything at will, resulting in an unprotected estate.

“Even when someone asks for an estate plan and has 1/100th of Mr. Jackson’s assets, I highly recommend an irrevocable trust.” It is a “completed gift”; therefore, the assets in the irrevocable trust are outside of the person’s estate and not subject to the estate tax.

If a person files a lawsuit against Michael Jackson’s estate, the assets in the irrevocable trusts are outside of his estate and not available to creditors or lawsuit winners. Revocable trusts don’t afford this same asset protection

Irrevocable trusts have stood up against the I.R.S. [Dean v. United States], bankruptcy court [IN RE: Jane McLean BROWN], divorce [Cooley v. Cooley] and many different types of creditors (see sources).

“These irrevocable trusts provide asset protection from future lawsuits and only pay out via incentives and age milestones (21, 30, 35, and 40 years old) as well as protect the money from themselves. Nobody believes a 15 year old should have access to 60 million dollars, so the trust with an independent trustee and trust protector protects and provides throughout their lives,” explains Mr. Beatrice.

Michael Jackson came very close to failing his family at death. “I’m glad Mr. Jackson could afford to make a donation to the government, but most people don’t want to throw away 35% to estate taxes (55% in 2013). They want to keep it in their family.” explains Mr. Beatrice.
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Offline hesouttamylife

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Re: Michael Jackson’s Probate Reveals Secrets

  • on: February 21, 2013, 07:57:51 PM
I don’t want to respond to this because I have always said & discussed here that those documents were poorly drawn up; one even fraudulent.  The only recourse for this is that nothing has gone into the trust because Michael is not dead.  I do not believe that all the money that Michael spent on advisors, attorneys and accountants, was wasted on people not smart enough to write up an appropriate final document for his children.  That will… it’s just not legit. &  I will never believe it is.  :icon_e_confused:  Michael is smart and loves no one more than his children so I know (at least I feel almost 100% confident) that he would make sure that his assets were left for their benefits and not over half going to taxes & fees and the like.  I believe in him that much. 
"Don't stop this child, He's the father of man
Don't cross his way, He's part of the plan
I am that child, but so are you
You've just forgotten, Just lost the clue.”

MJ "Magical Child"
Still Rocking my World…
   and leaving me Speechless!

“True goodbyes are the ones never said

Offline wishingstar

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Re: Michael Jackson’s Probate Reveals Secrets

  • on: February 21, 2013, 08:12:11 PM
"In this world nothing can be said to be certain, except death and taxes."
~Ben Franklin

Ugh.....taxes ....legal extortion in my humble opinion
Good article though, mindseye, thank you ........ I think it shows a really messed up legal system with greedy lawyers.........
I have a hard time believing Michael would have done such a poor job in estate planning.  Everything I have read, always
said he was a very astute businessman.  Of course, I believe he still is : ) very astute indeed!

Blessings Always

Online Andrea

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Re: Michael Jackson’s Probate Reveals Secrets

  • on: February 21, 2013, 08:29:59 PM

Quote
“If Mr. Jackson utilized irrevocable trusts like Steve Jobs, the family could be using their share right now. No waiting, no estate taxes, no public scrutiny, no courts, and asset protection,” states Mr. Beatrice.


I would think that MJ's REAL will would have irrevocable trusts.  The fake will that we've seen was designed to do the exact opposite of the above.  It was created to delay everything, to be publicly scrutinized and openly questioned.  I'm not sure about the tax mess but if it's not a real will then something else will be sorted.

Offline Faithad777

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Re: Michael Jackson’s Probate Reveals Secrets

  • on: February 21, 2013, 10:58:09 PM
I believe the same.  The fake will is being used only to put money in the lawyers pockets, the executors of the estate, and everyone else who benefits from it. 

Offline blankie

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Re: Michael Jackson’s Probate Reveals Secrets

  • on: February 22, 2013, 06:16:12 PM
I believe the same.  The fake will is being used only to put money in the lawyers pockets, the executors of the estate, and everyone else who benefits from it.

Agree.
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Offline hesouttamylife

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Re: Michael Jackson’s Probate Reveals Secrets

  • on: February 22, 2013, 08:01:21 PM
I believe the same.  The fake will is being used only to put money in the lawyers pockets, the executors of the estate, and everyone else who benefits from it.

Agree.

Ditto!
"Don't stop this child, He's the father of man
Don't cross his way, He's part of the plan
I am that child, but so are you
You've just forgotten, Just lost the clue.”

MJ "Magical Child"
Still Rocking my World…
   and leaving me Speechless!

“True goodbyes are the ones never said

Offline everlastinglove_MJ

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Re: Michael Jackson’s Probate Reveals Secrets

  • on: February 23, 2013, 07:19:03 AM
This article is filled with assumptions and speculation based on reports from the media.
It's up to the reader to believe the story or not... I personally don't because I don't know what's true.
I just believe and trust that MJ exactly knows what he's doing...that's all.

LOVE
It's all for L.O.V.E.

Online Andrea

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Re: Michael Jackson’s Probate Reveals Secrets

  • on: February 23, 2013, 08:59:38 AM
I believe the same.  The fake will is being used only to put money in the lawyers pockets, the executors of the estate, and everyone else who benefits from it.

Agree.

Ditto!


Yes, and with the massive tax thing, I wonder if this is a way the government (not entire org but at least one or two key people within) is "allowing" Michael to fake his death because they are compensated with $$ so legalities or whatever can be bent a bit.  Just a thought.

Offline mindseye

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Re: Michael Jackson’s Probate Reveals Secrets

  • on: February 23, 2013, 06:59:44 PM
I believe the same.  The fake will is being used only to put money in the lawyers pockets, the executors of the estate, and everyone else who benefits from it.

Agree.

Ditto!


Yes, and with the massive tax thing, I wonder if this is a way the government (not entire org but at least one or two key people within) is "allowing" Michael to fake his death because they are compensated with $$ so legalities or whatever can be bent a bit.  Just a thought.

I agree, and I think it appears to be a mess because maybe it's the only way to legally protect Michael since he's still alive  :icon_question: 
« Last Edit: February 23, 2013, 08:58:45 PM by mindseye »
'Money...Lie for it Spy for it Kill for it Die for it They'd kill for the money Do or dare'