Last Will of Michael Jackson

Just came accross this research paper that i wrote in graduate school and decided to share it :)

 Michael Jackson died on June 25, 2009 at the age of 50. The “King of Pop” held a substantial amount of tangible and intangible property, including the publishing rights to most of the Beatles’ music catalogue. At the time of death, there was an executed revocable trust document called “Michael Jackson Family Trust” and a Pour-Over Will, signed on July 7, 2002. The pour-over will, transfers all of his property (that was not held in the name of the trust at the time of his death) into the Michael Jackson Family Trust. Michael had three minor children- Michael Joseph “Prince” Jackson, Jr., Paris Katherine Michael Jackson, and Prince Michael “Blanket” Jackson II. The will appoints Katherine Jackson, Michael’s mother, as the guardian of his three minor children. Diana Ross is named as the back up guardian. Michael’s marriage with Deborah Jean Rowe Jackson has been dissolved prior, and she was intentionally omitted as a beneficiary and/or guardian of their children. The will appoints the following executors of Michael’s will: John Branca, John McClain and Barry Siegel as co-Executors. John McClain and Barry Siegel also served as two of the three witnesses. At first, I wasn’t sure if that is acceptable, but after researching this topic I found out that a person nominated in the will as executor can be a competent witness. Siegel later declined to serve as an executor, but John McClain, along with John Branca, currently serves as the co-executors. In order to examine in depth the facts surrounding the Will of Michael Jackson, I read the Last Will of Michael Joseph Jackson that is available online (Retrieved on July 2, 2013 at http://www.doyourownwill.com/famous-will-of/michael-jackson.html). At a first glance, the will seems a typical pour-over will with provisions typical for such a will. The will actually seems too simple for a celebrity such as Michael Jackson. I expected a more complex document; however, it details all of the required provisions. Although, poorly designed, the will was intended to transfer the testator’s entire estate to a revocable trust and function as a safeguard, sweeping into the trust any assets inadvertently not transferred to the trust. This is a witnessed testamentary will that meets all of the requirements of such a will. Specifically, it is typed, signed by the testator in the presence of at least 2 witnesses and signed by the witnesses as well. The will contains all the provisions required for a will such as: nomination of executors, guardian and attestation of witnesses. Further, I will examine in detail the provisions of the Michael’s Will.

 Division One – Introduction, Revocation, Spouse, Children and Issue. 

The introductory paragraph outlines the evidence of testamentary intent as the testator declares the document to be his will. It also revokes all prior wills and codicils. The testator also declares his residency state, which is California and names his minor children- Michael Joseph “Prince” Jackson, Jr., Paris Katherine Michael Jackson, and Prince Michael “Blanket” Jackson II. The testator explicitly declares that he is not married and that his prior marriage to Deborah Jean Rowe was dissolved. This is done in order to avoid consequences of pitfalls of an omitted spouse or child that might conflict with the testator’s intent.

Division Two and Division Three – disposition of property

These two paragraphs could have been more specific in terms of transferring the property into the “MICHAEL JACKSON FAMILY TRUST” as amended and restated on March 22, 2002. The language “as amended and restated” means he had a prior Trust that he has completely changed. The terms of his revocable trust will govern the disposition of his property. Even though there is not much information in the will in terms of disposition of property, hopefully the trust contains all those provisions. Due to the fact that the trust is a private document, I was not able to research in depth its contents. This division also contains a refrainment from exercising all powers of appointment. My understanding is that from a tax standpoint, Michael Jackson refrained from the power of appointment intending to safeguard himself from more taxes, creditors, or creditors of his estate.



br> Division Four- Estate Taxes and state inheritance or succession taxes 

According to the will provisions, the estate taxes will be paid by the Trustee of the Michael Jackson Family Trust, from the trust property. The estate taxes are normally due 9 months after the death. In certain circumstances, the time could be delayed up to 14 years. I assume that there is an extension to pay estate taxes in Michael’s case. Michael Jackson’s estate lacks liquidity, which means that due to lack of cash, some of the property will have to be sold in order to pay estate taxes. For the federal estate tax purpose, Michael Jackson’s estate is valued as the fair market value at the time of his death. Both the tangible and intangible or intellectual property are considered an asset subject to estate taxes. From what I understand, it is not an easy task to value Jackson’s assets. One of the online sources suggests that his estate is valued at 600 million dollars (Michael Jackson Net Worth Retrieved on August 2, 2013 from http://www.celebritynetworth.com/richest-celebrities/singers/michael-jackson-net-worth/). Given his debt, and other expenses, it is not an easy task to estimate the estate tax bill, but I can estimate that his estate is subject to substantial estate taxes.

The pour over will does not list Michael’s net worth and exactly who gets what. His trust, reads that 20% of his estate will go to charity, with the rest split in equal shares among his children and his mother, Katherine, with the condition that when Katherine passes away, her portion of share goes to his children. One interesting fact about charity bequest is that the charities get their share from Michael’s gross estate first, before taxes and other expenses are paid. Considering that Michael’s estate is substantial and thus the estate taxes and other expenses are substantial, the proceeds for Michael’s children and mother are substantially reduced. Michael could have avoided estate taxes by either devising the right to his intangible property outright to a charitable organization (instead of allocating 20% from the trust) or establishing a limited partnership with his three children. In order to avoid gift tax consequences, children could have contributed cash in return for general partnership interests and Michal could have contributed his publicity rights in return for a limited partnership interest. This could have been a better choice as the value of the estate could have been reduced dramatically, and as a result the tax bill could have been smaller. In year 2009, when Jackson died, the estate tax rate was 45%, with just $3.5 million exemption from estate taxes. Had he postponed his death 6 months later, his estate would have been in a much better position, as the estate tax was repealed for deaths in year 2010.

Division Five- Executors 
The Co-Executors of Michael Jackson’s will are: John Branca, John McClain and Barry Siegel as co-Executors. John Branca was a long time attorney and friend for the Jackson family, John McClain- Jackson’s music executive, and Barry Siegel was his accountant. Barry Siegel signed a letter on August 26, 2003, in which he declined to serve as a Co-Executor and Co-Trustee, leaving Branca and McClain to serve as the Co-Executors and Co-Trustees. Both still serve in this capacity today as Co-Executors of Michael Jackson’s estate. The powers granted to the executors are broad among other, including: “full power and authority at any time or times to sell, lease, mortgage, pledge, exchange or otherwise dispose of the property, whether real or personal” (Last Will of Michael Joseph Jackson, retrieved on August 2, 2013 from http://www.doyourownwill.com/famous-will-of/michael-jackson.html).

The will as well as the choice of executors were challenged after Michael Jackson’s death. In a letter signed by Jackson’s siblings and addressed to the executors, they demanded the executors to resign immediately, accused them of falsifying a legal document in order to gain control of Michael’s estate against his wishes and using the court to seal any documents that might prove otherwise. As reported by Forbes, The letter – signed by sisters, Janet and Rebbie, and brothers, Tito, Randy and Jermaine – accuses Branca and McClain of faking Michael’s will, calling the document “Fake, Flawed and Fraudulent.” (Mayoras, Danielle and Andy (2012, July 18, 2012 “Michael Jackson’s Siblings Promise New Fight Over His Estate”. Forbes. Retrieved July 25, 2013, from http://www.forbes.com/sites/trialandheirs/2012/07/18/michael-jacksons-siblings-promise-new-fight-over-his-estate/ ).

At this point, it is hard to prove the truth, however the fact is that the signed Will of Michael Jackson exists, and it has been proved legally valid.

Division Six – Disinheritance
The will states that Michael intentionally omitted to provide for his heirs. In a separate sentence, it is specified that the intention to provide for Michael’s former wife, Deborah Jean Rowe Jackson is omitted on purpose. This clause serves the idea that intending to disinherit spouse and heirs is best served by an explicit declaration of intent. The will does not have a no contest clause. This is a provision in a will, which states that if a beneficiary challenges any provision of the will or trust, then the beneficiary will be cut out and receive nothing. It is interesting to see what could have happened if the will contained such a clause. Perhaps there wouldn’t be so many challenges of the Michael Jackson’s will.

 Division Seven – Ancillary Administration 
Ancillary administration of an estate is required in the case where a decedent left assets in a state other than the state of his domicile. An ancillary administration is thus auxiliary to the domiciliary administration. The will appoints as ancillary Executors the domiciliary Executors- John Branca, John McClain and Barry Siegel, giving them additional ancillary powers and duties.

 Division Eight- Guardians
 Among the tools testators may use when providing for their minor children are nomination of a guardian of the minor’s person and nomination of a guardian of the minor’s estate. The guardian of the person generally has responsibility for the care, custody, control, and education of the minor. The guardian of the estate is responsible for the management and control of the minor’s property. Nomination of guardian for children is done in order to ensure that the minor’s needs for personal care, education, and supervision will be met. The will appoints Katherine Jackson, Michael’s mother, as the guardian of his three minor children. In case, Katherine predeceases Michael or is unwilling or unable for any other reason to serve guardian, the will appoints the signer Diana Ross as the legal guardian of Jackson’s three minor children. Michael’s will does not distinguish among the guardian of the person and guardian of the estate, so it is to assume that the same guardian is responsible and will embrace both duties. Execution of the Will The Will bears Michael Jackson’s signature and the date of execution as July 7, 2002. Surprisingly, there is no legal requirement that a witnessed will be dated. The will should include the date of execution, however, in case there is any question about whether it is the testator’s last will. Likewise, there is no requirement that a will state the place of execution.



The will is also initialed by Michael Jackson on each of the 5 pages. Attesting Witnesses Three witnesses signed at the end of the will, confirming that the testator declared to the witnesses that the instrument is the testator’s will and requested that the witnesses sign it; and that the witnesses signed the will in the testator’s presence. The attestation statement reads that Michael Jackson signed the will in the presence of all three witnesses. The witnesses then, had to declare under penalty of perjury that the attestation statement is true and correct. Following, is the witnesses execution date, time and place- listed as -July 7, 2002, at 5:00 p.m. in Los Angeles, California. The witness’s signatures appear to be of John McClain and Barry Siegel, who are also named as executors. The third witness signature is not legible. Most of the public versions of the will have the signature and home address of the witnesses blocked with white out. Postmortem Procedures Given the fact that Michael Jackson’s assets were placed in a trust, his estate shouldn’t have been subject to probate procedure. However, Michael’s will was challenged by his father, Joe (who was omitted as a beneficiary) and by his mother, Katherine- who later withdraw her challenges. As stated above, Michael’s siblings also challenged the validity of the will as they sent a letter to John Branca and John McClain, the executors of Michael Jackson’s estate. In order to further investigate the probate procedures, I researched the Los Angeles County Superior Court online case status for information on the Court Docket for Michael Jackson’s estate. Given the fact that probate procedures are public, it was relatively easy to get access to all the court information pertaining to Michael Jackson’s estate, case number BP117321.(Superior Court of California, County of Los Angeles, Probate Court files, retrieved on July 25, 2013 from: http://www.lasuperiorcourt.org/civilcasesummarynet/ui/casesummary.aspx?CT=CI#DOC). Among other things, the information about the probate of Michael Jackson’s will and estate includes data on future hearings, filed documents, proceedings held, probate notes, etc. Given the number of petitions, and issues involved with the estate the probate might take a significant time to settle all the challenges. Conclusion Even though challenged by many, the Will of Michael Joseph Jackson serves as an important estate planning document. First, the will appoints the guardian for the minor children. Without a will, the court could have appointed the guardian, and it might not have been what Michael Jackson intended. Secondly, the pour-over will’s purpose is to protect against a possible failure to transfer later-acquired assets to the trust. Even though the property of Michael Jackson has been probated at his death, the fact that the assets were placed in a trust avoids the public record disclosure of the final disposition of Michael Jackson’s property. References: Last Will of Michael Joseph Jackson that is available online (Retrieved on July 2, 2013 at http://www.doyourownwill.com/famous-will-of/michael-jackson.html Michael Jackson Net Worth Retrieved on August 2, 2013 from http://www.celebritynetworth.com/richest-celebrities/singers/michael-jackson-net-worth/ Mayoras, Danielle and Andy (2012, July 18, 2012 “Michael Jackson’s Siblings Promise New Fight Over His Estate”. Forbes. Retrieved July 25, 2013, from http://www.forbes.com/sites/trialandheirs/2012/07/18/michael-jacksons-siblings-promise-new-fight-over-his-estate/ Superior Court of California, County of Los Angeles, Probate Court files, retrieved on July 25, 2013 from: http://www.lasuperiorcourt.org/civilcasesummarynet/ui/casesummary.aspx?CT=CI#DOC). Disclaimer: This is a research article only. I am not an Attorney and I am not providing any estate planning services to the public.