Michael Jackson’s estate was over $500 million in debt when he died
New court documents recently revealed that Michael Jackson was over $500 million in debt at the time of his death in 2009.
The June 21 filing by the executors of his estate detailed the financial challenges the 13-time Grammy winner faced at the time of his death. The Los Angeles County Superior Court filing revealed that Jackson’s most valuable assets were encumbered by more than $500 million in debts and creditor claims, some of which were accruing interest at extremely high rates or were in default.
The King of Pop died on June 25, 2009 at the age of 50, just before his planned ‘This Is It’ concert tour, which included cities such as London, Paris, New York and Mumbai. Jackson’s death was caused by a lethal dose of the anesthetic propofol administered to him by his personal physician Conrad Murray, who was later convicted of involuntary manslaughter.
According to court filings, Jackson’s estate owed “This Is It” promoter, AEG, a financial burden of about $40 million after his death. Jackson was also facing lawsuits abroad and in several US states, including California, at the time of his death. Creditors had filed more than 65 claims against Jackson, resulting in additional litigation. However, executors noted that they have resolved most of the creditors’ claims and other legal actions.
The executors requested reimbursement from Jackson’s estate for legal services in 2018, among other expenses. Prior to this filing, a public accountant testifying for AEG in 2013 had provided a detailed account of Jackson’s finances, noting his excessive spending on jewelry, art, furniture, gifts, travel, and charity.
The supposed beneficiaries of Jackson’s estate are his mother Katherine and his children: Prince, 27; Paris, 25; and Blanket (Biggie), 22. However, executors reported that these beneficiaries were not receiving financial distributions due to an unresolved dispute with the IRS over his 2021 federal tax returns. The IRS claimed the estate owed nearly $700 million more in taxes and penalties.
Throughout his career, Jackson sold more than 400 million records. He was inducted into the Rock and Roll Hall of Fame twice, in 1997 as a member of the Jackson 5 and in 2001 as a solo artist.