Taxation & Estate Planning

Michael Jackson's Estate, Part 4: Butterflies

By Joel A. Schoenmeyer

Today there was a court hearing in Michael Jackson's estate. Some details, from MSNBC:

1. There's a 1997 Will as well as a 2002 Will. The 1997 Will only comes into play if the 2002 Will is found to be invalid.

2. Given the temporary nature of the appointments of John Branca and John McClain, as well as the fact that they are referred to as "administrators," I have to believe that we are talking about a scenario involving what are known (in Illinois, at least) as "administrators to collect." This is a special kind of personal representative, appointed when assets are in danger of wasting and time is of the essence.

3. In choosing a temporary administrator or administrator to collect, courts usually honor the wishes of the decedent in choosing his or her own executor. That's why the court appointed Mr. Branca and Mr. McClain and didn't appoint Mr. Jackson's mother.

4. Mr. Jackson's mother is concerned about Mr. Branca and Mr. McClain's "financial leadership" and potential conflicts of interest, but the fact of the matter is that Mrs. Jackson and the other beneficiaries have a lot of safeguards in place. Mr. Branca and Mr. McClain must post a bond and ask for court approval of transactions they undertake.

Full post as published by Death and Taxes Blog on July 06, 2009 (boomark / email).