Michael Jackson Estate 2.0Mar 7, 2017 | Wealth Management
The Michael Jackson estate and the IRS have a slight disagreement about the value of his name and likeness at the time of his death. The estate pegs the value of his name and likeness at $2,105 while the IRS values them at $434 million. Now, I’m not an accountant, nor am I fluent in the mathematical musings of Albert Einstein or Blaise Pascal, but it would appear that $434 million is slightly larger than $2,105! While $434 million may or may not be accurate, $2,105 seems to be a substantially discounted value. The US Tax Court began holding hearings on this matter recently with $500 million in estate taxes and $200 million in IRS penalties at stake. The Jackson estate is arguing that the IRS cannot take into account the earnings and marketability of Michael Jackson after his death because his value before his death and including his date of death was much lower. Again, the IRS has a different view. And, when you add the sibling fights and other lawsuits over the estate into the mix, you get a good ol’ fashioned legal donnybrook that will play out in the courtroom for years.
Fortunately, the value of my name and likeness is certainly not going to cause such discord between my executor and the IRS but may garner a few chuckles.
If you have any questions about your estate or retirement plan, give me a call. I’d be happy to review your situation in more detail.
Have a great week!
Senior Wealth Advisor
Investments offered by Wealth Management Division at Bank of the Bluegrass & Trust Company *Are not FDIC Insured * Are not Bank Guaranteed * May Lose Value*
The information presented in this blog is general in nature. It is not intended to provide, and should not be relied upon for accounting, investment, legal or tax advice. Investors should consider their individual financial circumstances and the inherent risks of investing prior to making any investment decision.
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