Despite having passed away over 15 years ago, Michael Jackson’s estate is still going through probate. This length of time is uncommon, even in the notoriously time-consuming world of probate. What’s been causing the hold-up with settling Michael Jackson’s estate? His music catalog, for one.
Michael Jackson’s Music Catalog
A music catalog is a collection of songs owned by an artist. For Jackson, this includes the artist’s genre-bending and transcendent megahits like Thriller, Billie Jean, Bad, and Beat It. It also includes songs by other artists that Jackson owned the rights to. The estimated value of his catalog is over $1.2 billion.
Sony Music has been attempting to purchase the pop legend’s catalog for the past couple of years, but legal battles have prevented the transaction. Jackson’s mother, Katherine Jackson, objected to the sale, voicing her concern that it was not in her son’s best interest. She stated that not only had her son verbally stated that the assets should stay in the family, but also that the value of the songs would continue to grow.
A California appeals court upheld a previous decision supporting the estate executors’ authority to sell assets according to Jackson’s will, thus overriding Jackson’s mother’s objections.
The Role of the Estate Executor
John Branca and John McClain, the executors of Michael Jackson’s estate, are tasked with an enormous undertaking. Administering an estate is a challenging role, even when there aren’t over one billion dollars in assets at stake.
Executors are responsible for settling a deceased person’s estate and carrying out their wishes as detailed in their last will and testament. This can include tasks like:
- Filing the will in probate court
- Taking inventory of assets
- Valuing and managing assets
- Paying debts and taxes
- Distributing assets to beneficiaries
What happens when a will does not clearly state how a scenario should be handled? Executors have a fiduciary duty to make decisions that are in the best interests of the estate and the estate’s beneficiaries. For Michael Jackson’s estate, the best option was a contentious topic.
While Branca and McClain thought selling the music catalog was best for the estate and Jackson’s beneficiaries, Katherine Jackson disagreed because of her belief that the value of the music would increase in the future and her interpretation of her son’s verbal wishes.
The Terms of Michael Jackson’s Will
Jackson’s will granted the estate executors broad powers to sell any of the estate’s assets. Despite Katherine Jackson’s insistence that her son had expressed a desire to keep the music catalog in the family, the will did not include any such exceptions to the powers of sale. This means that the executors can proceed with selling the music catalog. Once the assets are sold, the proceeds will be distributed to the Michael Jackson Family Trust.
The 15-year-long Michael Jackson estate debacle underscores the importance of careful estate planning, and this lesson is relevant no matter the value of your estate. If you would like to create a tailored estate plan that fits your needs perfectly, contact Fleurinord Law to schedule a consultation. We have locations in Florida and Texas, and you can contact us at our Houston office at 713-346-2011 or our Aventura office at 305-900-3139.