Katherine Jackson Wins

Thursday, September 24th, 2009

Associated Press reported that Katherine Jackson, the mother of Michael Jackson, can now challenge her son’s estate administrators without risking her inheritance share.  This is the ruling of Mitchell Beckloff, a Superior Court Judge, last Friday.  In the ruling, it states that Mrs. Jackson can remove the estate executors - John McClain (music executive) and John Branca (lawyer) - or challenge their authority without being disinherited.

Although there’s a family trust provision that calls for anyone challenging the will to lose their share in the trust, the judge ruled the complete opposite.  Previously, the lawyer of Mrs. Jackson raised concerns about a few deals that Mr. McClain and Mr. Branca have negotiated, including the involvement of Michael’s concert promoter, AEG Live.

According to Londell McMillan, Katherine’s lawyer, “We hope that this outstanding administration matter is resolved, without need for further costly obligation - this is for the best interests of Mrs. Jackson and Michael’s children, who are the true beneficiaries.”

The family trust gives 40% to Mrs. Jackson, 40% to Michael’s three children, and the remaining 20% will be given to charities.  Judge Beckloff also approved around $1 million annual allowance for the family - Mrs. Katherine Jackson, Michael’s daughter Paris, and his sons Prince Michael and Blanket.

Tags: administrators, AEG Live, Associated Press, Blanket, estate, Family Trust, inheritance, John Branca, John McClain, judge, Katherine Jackson, lawyer, Londell McMillan, Michael Jackson, Mitchell Beckloff, Paris, Prince Michael, trust
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Jackson’s Movie Deal may strengthen his Estate

Monday, July 20th, 2009

Business executive John McClain and attorney John Branca are talking with AEG Live, the exclusive promoter of Michael Jackson’s supposed London concerts.  The late Jackson was preparing for these concerts before his sudden death on June 25; nevertheless, the videotape of his rehearsals could still be used to create a DVD or movie that would be sold to millions of fans.

Reportedly, Sony will pay $50-$60 million for the footage and this agreement would be announced any day from now.  Legal experts are saying that this deal could strengthen McClain and Branca’s control of Jackson’s estate, since they’re proving to the judge that they have the acumen in handling Jackson’s business.

At stake here is the control of King of Pop’s estate that is believed to be $200 million net of his $500 million debt.  Initially, Katherine Jackson, his 79-year-old mother was given temporary control; however, a 2002 will that Jackson signed have surfaced naming McClain and Branca as executors.  Therefore, a judge temporarily transferred control to them while the attorneys of Katherine Jackson are discussing to challenge their appointment.

The hearing is set for August 3.  Moreover, an attorney expert in legal matters including wills said that McClain and Branca clearly have an advantage since Jackson nominated them as executors in his will.    

Tags: AEG Live, attorney, attorneys, estate, John Branca, John McClain, Katherine Jackson, King of Pop, legal, Michael Jackson, Sony, will, Wills
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Lessons from Michael Jackson

Thursday, July 9th, 2009

Before he died, it’s a good thing that Michael Jackson made a smart estate plan.  He provided and cared for his loved ones because a separate document gathered his assets (estimated to be over $500 million, which exceeds his debt by $200 million).  It’s called a family trust - this ensures that his affairs would stay out of court and out of the eyes of the public.

He established this trust along with his will, and it’s also called a “living or revocable trust.”  The goal of this estate-planning tool would be to transfer all the property - including real estate, bank accounts, and cars - into a separate owned entity while maintaining the control as a trustee.  In Jackson’s case, he established a “Michael Jackson Family Trust.”

At his death, the control will be transferred to his successor trustee or co-trustee.  Most people (Jackson included) will set it up to “pour over” - this means that whatever assets remain outside of the trust would be eventually be added to the estate at their death.

The beauty of this trust is: people can avoid a public process called probate.  Aside from celebrities, this process would also make sense for people with significant assets because it would spare their heirs from a prolonged legal process.

Tags: assets, co-trustee, estate plan, Family Trust, legal, living trust, Michael Jackson, probate, revocable trust, successor trustee, trust, trustee, will
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Possible Legal Struggle in Jackson’s Will

Saturday, July 4th, 2009

The value of Michael Jackson’s estate, mostly in holdings aside from cash, has been estimated over $500 million. However, Jackson also carried a huge debt when his career foundered recently, mostly due to accusations of child molestation.  Even if he was acquitted in 2005, his career struggled although he had just planned a comeback through a series of concerts supposed to begin this summer.

Mrs. Katherine Jackson, mother of Michael, requested to have control of her son’s real estate holdings, financial accounts, and stake in Sony/ATV Music Publishing catalog (including works of Beatles).  The will named John McClain (longtime friend) and John Branca (lawyer) as executors.  Another person, Barry Siegel, was named as co-executor; however, according to the court papers recently filed, Mr. Siegel already resigned from his position in 2003.

Michael Jackson gave full power over financial matters to the executors - this include mortgaging, leasing, or selling his property, continuation of any business enterprise, and selling or buying of assets.  It was reported that before he died, Jackson wanted to raise money coming from his belongings.  He moved costumes, jewelry, artwork, luxury cars, and other property from Neverland last year to host an auction.  However, it never took place.

Tags: auction, Barry Siegel, estate, John Branca, John McClain, Katherine Jackson, Michael Jackson, Neverland, will
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Celebrity Estate Planning

Wednesday, July 1st, 2009

With so many celebrities passing away recently - Karl Malden, David Carradine, Farrah Fawcett, and Michael Jackson - there’s been a lot of talk about lack of proper estate planning.  Some celebrities who passed away without even planning their estate are Elvis, Anna Nicole Smith, Jerry Garcia, and Heath Ledger.

Apparently, Michael Jackson did some planning; however, his documents were not updated for more than 7 (seven) years.  So it goes to show that when celebrities neglect this very important step, then there are dreadful consequences.

You might be thinking that you don’t have an estate to protect like them and you probably don’t need estate planning.  But be informed that whatever size your estate is, it does not excuse you from executing an estate plan.  Simply put, it’s a plan that will ensure your family’s financial needs are met after you die.

So if you own a home (whether mortgaged or not), a business, or any other asset (such as insurance policies), you need an estate plan.  Certainly if you have children, you would want to ensure a bright future for them even after you’re gone.  The only way to do this is to dust off your documents and review them to see and decide on the beneficiaries of your assets.  It would be better if you speak to an estate planning attorney to seek help in taking care of this.

Tags: beneficiaries, celebrities, estate, estate plan, Estate Planning, estate planning attorney, Michael Jackson
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Family Trust of Michael Jackson Controls His Estate Decisions

Tuesday, June 30th, 2009

Michael Jackson Family Trust was set up as the entity to be used in helping out the recipients of Jackson’s will.  Most importantly, this trust will control Michael Jackson’s estate.  As dictated in his will, he’s giving all his estate to the family trust where all assets will be managed as one rather than separate entities.  This will make it easier for the executors.  Having the trust in place will also help his children in the long-term as well.

In his will, Michael outlined exactly what needs to take place.  Section III of the will drafted in 2002 states that “I’m giving my entire state to the Trustee/s under that certain Restated and Amended Declaration of Trust…All such assets shall be distributed, managed, and held as part of said Trust…”

In other words, Trustees of Michael Jackson Family Trust will have great power when it comes to his assets.  However, if you read between the lines, it would mean that they’ll also need to over-see how many monetary assets as well as the intervals when Michael’s kids will see these funds.

Trusts like these need to be set up to help people awarded with physical and monetary assets in a will.  It will also allow the Trustees to disperse assets at the right time and advise the kids along with it.  Jackson’s mother, Katherine, will retain some rights as guardian of his children; therefore, she has a vested interest in this estate.

Tags: estate, executors, Family Trust, Katherine, Michael Jackson, trustee, trustees, trusts, will
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Will of Michael Jackson Found

Sunday, June 28th, 2009

The family of Michael Jackson believed that he died without a will.  However, their lawyer said that he has one and suggested that there may be other wills that exist related to the late singer’s estate division.

The family attorney, L. Londell McMillan, said “I just saw his will this morning for the first time.  We’re in the process of review.  My various advisers are still looking for other additional documents.  We wish that we have known it earlier.”

This will was drawn by John Branca in 2002.  He’s the attorney of Michael Jackson from 1980 - 2006.  It’s expected that he’ll submit the will to Los Angeles Superior Court by next week.  Mr. Branca and John McClain, music executive and the singer’s long time friend, are the will’s executors.

According to the will, it’s clear that Jackson’s desire was for his mother to take guardianship of his children.  His estate is also believed to be divided between his children, mother, and charities.  They’re not expecting to see the name of his father, Joe Jackson, because they had some troubled relationship.

Although no further details were disclosed about the will’s content, it’s believed that its mere existence greatly affects the petition made by Katherine Jackson, his mother, to become the estate’s administrator.  

Tags: attorney, estate, famiy attorney, Joe Jackson, John Branca, John McClain, Katherine Jackson, L. Londell McMillan, Los Angeles Superior Court, Michael Jackson, singer, will
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Jackson’s Mother Asked to Administer His Estate

Sunday, June 28th, 2009

The mother of Michael Jackson, Katherine Jackson, asked a Superior Court judge in Los Angeles to name her as administrator of the estate belonging to his late son so that she can ensure that the beneficiaries would be his two children.

According to the court filing, Jackson’s parents think that he died without any valid will.  Joe Jackson, the late singer’s father, supported Katherine in her petition.  The court documents also state that Katherine Jackson “has intentions to marshal the assets of the descendant just for the three children’s exclusive use, after expenses of administration and payment of debts.”

Mitchell Beckloff, Superior Court Judge, granted the request for Katherine to assume temporary guardianship of the children; however, didn’t immediately accept her request to be the estate administrator.

So far, a will made by Michael Jackson to find out his wishes for the care of his estate and children has not surfaced yet.  Although Jackson’s funeral is still now in its planning stages, Joe, his father, said that his late son would not want to be buried at the Neverland Ranch, which is the sprawling playground that the entertainer built in Santa Barbara County’s rolling hills.

Tags: court, estate, estate administrator, Joe Jackson, judge, Katherine Jackson, Los Angeles, Michael Jackson, Neverland Ranch, Santa Barbara, singer, Superior Court
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