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Understanding MJ Estate & Correcting Misconceptions

Petrarose said:
Ivy I agree. I see by the question that some are influenced by some experts on tv or in papers who were saying that most people with Michael's wealth have more detailed trusts. In other words, Michael should have a detailed trust, because those OTHER people have detailed trusts. We need to stress that as long as Michael's trust accomplishes its goal, then it is adequate for Michael Jackson.

Further, how can anyone say they would like to see Michael "with a similar detailed document." Michael did not leave any money to us. The estate exec are not confused about what to do. They understand the trust and know how to act.

On another issue, I don't want to be rude, but are some people making this thread more complicated than it should be? Are people bringing in complicated scenarios and mathematical equations to confuse the issues?
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I agree, too complicated. I'm not an accountant, an attorney, or in any other specialized field dealing with large estates. I do know this. Michael built and left a music empire. He left it to his children to someday own and manage.It has grown since his dealth, for that we can all be thankful. It's not about will this child get 5 mil or 4.5 mil,etc. They will all own the MJ Estate exclusively someday. They will donate to charity and continue his humanitarian efforts. Michael tried to make it as clear cut as possible, What he appears to have wanted is simple: kids run company, give to charity, don't spend all his money.
 
When the kids turn 40 and get full control of the assets does this even mean they will become executors? Ive seen several people claim the kids will never become executors (inspite showing them his trust where is says the kids will be in control = executor position). How does this work?

Prince will turn 40 in 25 years.... around that time Im sure Branca and McClain will both be over 80 (perhaps even 90). If both Branca and McClain have to step down before Prince turns 40 from their duties, who will decide whos the next executors?
 
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Bonnie Blue said:
And why should the public be party to mj's private trust documents? As far as i understand it trusts are private which is just one of the reasons the rich and famous use them. If you look for mj's trust online, you can find it with a great big watermark of news of the world on it. That's because, like everything else mj, it was sold to the tabs, prob by oxman, and so that's why it's ended up poured over, scrutinized, criticised and called 'ridiculous' by people. I'm sure when mj was having his trust drawn up, what fans' preferences might be was not a major concern for him.
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True. Trusts are supposed to be private and that's why people prefer them. It keeps your business private. And it's obvious that Michael's trust has leaked. The source can also be Howard Mann. During his deposition in AEG's case he said he knew a person from News of the world and worked with them extensively and employed him on many occasions.

Vici said:
When the kids turn 40 and get full control of the assets does this even mean they will become executors? Ive seen several people claim the kids will never become executors (inspite showing them his trust where is says the kids will be in control = executor position). How does this work?

Prince will turn 40 in 25 years.... around that time Im sure Branca and McClain will both be over 80 (perhaps even 90). If both Branca and McClain have to step down before Prince turns 40 from their duties, who will decide whos the next executors?
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The current Executors / Trustees will decide who will replace them. If they don't and if there's no individuals listed as an Executor / Trustee then Bank of America ( previously called Nationsbank) will become the Executor / Trustee.

As the children are getting their share from the principal they would start to get control over the Estate and at the end control all of it. Given the size of the Estate and the complexity it's a lot likely that they would hire people to run the Estate.

Let me give the example of Elvis Estate

Elvis had determined his father Vernon as the Executor and Trustee of his Estate. His grandmother, his father Vernon and his daughter Lisa Marie were the beneficiaries of Elvis's Estate. Lisa Marie was a minor and was supposed to get her share at 25 years old. Lisa Marie had also become the sole beneficiary when Elvis's father Vernon and grandmother died.

When Elvis's father Vernon died his will determined the next set of the Executors to take his place. Vernon left the Executor/ Trustee position to Priscilla Presley (Lisa Marie's mother), a local bank and an accountant that worked with Elvis and Vernon. These 3 co- executors/ trustees run Elvis Estate until Lisa Marie was 25 years old.

At 25 years old Lisa Marie got the full control of her father's estate. Rather than to run it alone on her own, she opted to form her own trust and name her mother Priscilla and the local bank as co-trustees. Lisa Marie had the major control over the decisions but her mother and the bank still worked as advisers. Later on at 2005 she sold a major interest at Elvis Estate. She currently only has 15% interest in her father's Estate, a veto power in decision making and owns Graceland and Elvis's personal properties.
 
ivy said:
True. Trusts are supposed to be private and that's why people prefer them. It keeps your business private. And it's obvious that Michael's trust has leaked. The source can also be Howard Mann. During his deposition in AEG's case he said he knew a person from News of the world and worked with them extensively and employed him on many occasions.

Later on at 2005 she sold a major interest at Elvis Estate. She currently only has 15% interest in her father's Estate, a veto power in decision making and owns Graceland and Elvis's personal properties.
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So basically Mann could have been behind many crappy stories of MJ that was published in NOTW.

If PPB someday want to sell their father's estate like LMP did to her father (I hope that will never happen), can they do that and I suppose all three have agree with the sale?
 
I am actually glad Michael let his children get full control of his estate when they turn 40, otherwise they probably will have nothing left. LMP is the good example. Before she took control of her father's estate, the estate was make money every year but after she inherited, just a few years she ended up selling 85% of her father's estate because she was in heavy debts and losing money every year.
 
Eventually his kids will run it all as it should be. Right now they are too young. I hope they never sell anything shares or anything. I hope it stays between the 3 of them.
 
I finally found the article I read years ago about the will and trust and it was very positive and stated alot of what Ivy said.

http://www.starrlawfirm.net/Articles/Shrewd-Planning-A-Review-of-Michael-Jackson-s-Estate.shtml

Then I read the Forbes article and tbh, I don't who to trust. When in doubt I trusted what came out of MJ's mouth. From what I've seen I don't know who to believe; the family, the executors, both, none, idk. This is why I just hope the best for MJ and his beneficiaries and that this is what he truly wanted because idk.
 
I find it difficult to trust a word that comes out of forbes mouths as over the years they have shown nothing but an agenda when it comes to mj
 
So when jr turns 21 he will start to get a wage so to speak rather than an allowance and will that wage totally be determined on the profit the estate made that year.for eg if the estate made 9mill profit will jr be given 3.or if it makes 90 mill will he get 30? or can the estate determine how much he gets?
 
elusive moonwalker said:
So when jr turns 21 he will start to get a wage so to speak rather than an allowance and will that wage totally be determined on the profit the estate made that year.for eg if the estate made 9mill profit will jr be given 3.or if it makes 90 mill will he get 30? or can the estate determine how much he gets?
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yes he will get his share of net income and it will be all determined by profits as well as operating costs and so on.
 
Thanks. kinda worrying in one sense. before i didnt think they would be getting substantial
amounts till they were 30
 
elusive moonwalker said:
Thanks. kinda worrying in one sense. before i didnt think they would be getting substantial
amounts till they were 30
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How about if mj died intestate which was the preferred outcome for the jacksons - then prince and paris would be given control of the sony/atv catalgoue, mijac, neverland, everything - the whole billion dollar estate in 3 years time.
 
True. could be worse i guess.not that i could ever imagine mj not leaving a will knowing what the fam are like i just hate the thought of all the sniffing
around and sucking up when before i thought they were pretty much safe until they were thirty
 
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elusive moonwalker said:
True. could be worse i guess.not that i could ever imagine mj not leaving a will knowing what the fam are like i just hate the thought of all the sniffing
around and sucking up when before i thought they were pretty much safe until they were thirty
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well they aren't that vulnerable. The valuable principal assets are protected until they are older and they would only lose the yearly income. We also don't know how much the yearly income would be. It's going down every year - in 2012 it's estimated that it is $140 M in gross income. Elvis averages $50- $60 M a year in gross income. It's possible that MJ Estate's earnings would go down to those numbers and after taxes, operating costs, cash kept at hand for future projects and such and divided 3 ways the yearly income might be just a few million dollars.

Also it's important to say that the trust document says "pay or apply to his benefit". So it's a possibility that the Estate might opt to not pay the net income outright and they can choose to pay the bills and give it at monthly payments. It is possible for them to maintain some sort of control and protection of the children.
 
Thanks for that ivy. i hope its more of a monthly wage than lump sums. I guess what ever the amount is even if it were "only" a few million a year you will still get ppl saying lend me 10k or 50k and the whole entitlement issue. i guess come 21 u hope they have carved a life for themselves away from that
 
Bonnie Blue said:
How about if mj died intestate which was the preferred outcome for the jacksons - then prince and paris would be given control of the sony/atv catalgoue, mijac, neverland, everything - the whole billion dollar estate in 3 years time.
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If that had happened, then Prince would have given control of nothing. In three years, any Jackson's on control of the estate would have shared the money among themselves, sold the catalogue and music, and there wouldn't be much for PPB to inherit.
 
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