If Michael Jackson Was a Resident of Louisiana - the Feeding Frenzy

Michael Jackson died last week - presumably a resident of the State of California. There will be many estate issues that will take many years to resolve. If he died a resident of the State of Louisiana, here are a few of the issues that would crop up in his Succession:

1. Tutorship of Minor Children. It is being reported that Michael may not have been the biological father of his children - this really muddies the waters. The tutor (other states call this person a "guardian") has all of the parental rights  - such as the right to raise the children, determine where they go to school. manage their money, etc. In Louisiana, the surviving parent typically has the right to be confirmed as the natural tutor if one of the parents. Since the tutor will likely be able to control much of the minors' money, this likely be a battle that will go on for years - perhaps at least until the children reach the age of majority.
2. Executor of Estate. The pop singer's Last Will has not popped up yet. I'm sure it will soon. In his Will, he named an executor. It's the executor's job to gather all the assets, pay the estate debts (its been reported that he is $400 million in debt), and see to it that the remaining estate assets get properly transferred to the heirs. Since it is usually about the money, the named executor will fight to keep his job. In Louisiana, the executor is entitled to a fee of 2.5% of the assets of the succession. If his assets are $500 million, the executor's fee will be $12.5 million - good work if you can get it. The executor will have to file the will at the courthouse and make it public record before he can be confirmed as the executor.
3. Michael Jackson's heirs - No telling who he left his estate to - could have been his children, his parents, his siblings, other friends, charities, or perhaps his chimpanzee friend. We'll know soon enough when TMZ gets their hands on a copy and sends it out over the internet, or when the executor files the Will at the courthouse. If he left part of his estate to his children, he probably left it in trust for them until they are older. He would have designated a trustee of his children's trusts. If he died a resident of Louisiana, his children would be forced heirs and entitled to divide one-half of his estate - no matter what his Last Will provides. California and all other states do not have forced heirship. This trustee will no doubt demand significant compensation.
4. Estate tax. Since Michael Jackson died in 2009, there will be estate tax due on the portion of his net estate that exceeds $3.500,000. Since much of the value of his estate is tied up in real estate, future royalty payments, and business interests, there will be significant bickering between his estate and the IRS regarding the value of Michael Jackson's estate. The estate will attempt to decrease the value of his assets, and increase the value of his debt, in order to minimize the 45% federal estate tax. His federal estate tax return is due nine months after the date of his death - no doubt there will be extensions and controversy with the IRS.

There will be numerous legal, financial and tax struggles that will face the parties involved in settling Michael Jackson's estate. Many of these issues will not be "Black or White." Some will be good and others will be "Bad." I'm sure the estate litigation will be a "Thriller" to watch unfold. Many people will be told to, "Beat It." If I were advising an heir, I'd tell them, "Don't Stop 'Til You Get Enough." I'm sure there will be many fighting for custody of his daughter stating, "The Girl is Mine." No doubt there will be many people who will "Wanna Be Startin Somethin."

Good luck to all involved. I hope the children's best interests are looked after.

Paul Rabalais

Comments

[Marcel Dupré]

Nice use of MJ's lyrics and song titles to make your point Paul. It was easy as "ABC" to read.