Michael Jackson's children blocked from receiving trust funds amid estate legal battle

Michael Jackson's children and mother have been blocked from receiving funds from his trust until his estate resolves a legal issue.

Prince, 27, Paris, 26, and Bigi Jackson, 22, as well as their grandmother, Katherine, 94, have been temporarily cut off from the King of Pop's trust.

According to court documents obtained by People, they will not be able to receive any money until the estate resolves an ongoing dispute with America's Internal Revenue Service (IRS).

The legal issue began when IRS officials issued the estate "a note of deficiency" following a tax audit and claimed executors "undervalued its assets" and owed "$700 million in taxes and penalties".

The estate argued the findings and won its case in 2021. However, it has since filed a motion for the value of the singer's back catalogue to be reconsidered.

This means the value of the estate for tax purposes is currently undetermined and the beneficiaries of the trust cannot receive funds until it is finalised.

In the documents, attorneys asked for a portion of the estate to be given to the family trust, but this request was denied because it couldn't be determined "what amount could be safely distributed at this time".

Executors then suggested Michael's beneficiaries receive funds through the "family allowance".

The development comes months after Sony Music Group paid a reported $600 million (£472 million) to buy half of the Thriller hitmaker's music catalogue in February.

Katherine has been locked in a legal battle with the estate trying to block a business deal, believed to the catalogue sale. She wants the estate to pay for the legal fees she has accrued in trying to oppose the deal - but they are fighting her request.

Bigi, also known as Blanket, got involved in March and filed legal papers against his grandmother to block her from using estate funds.