The executors of Michael Jackson’s estate successfully issued a final written opinion confirming the artist’s mother, Katherine Jackson (“Katherine”) had no basis to challenge the lower court’s approval of a $600 million catalogue deal with Sony.[1] The opinion described the 2022 Sony deal as a “joint venture” that the executors had the right to sell while Mr. Jackson’s estate remained in probate.[2]

Katherine opposed the deal because she alleged it violated her son’s will and wishes that all of the estate’s assets were to be distributed to the trust specifically naming his children and her as beneficiaries.[3]

However, the “joint venture” was seen by the court as not a gift but rather an asset sale which did not diminish the estate’s value nor impair the executors’ ability to move assets to the trust.[4]

The estate of Mr. Jackson, who had passed away on June 25, 2009, had more than $700 million in alleged unpaid taxes and penalties.[5] As a result his estate has remained in probate since 2009, but once probate closes, the entire estate will be transferred to the trust naming Mr. Jackson’s kids and Katherine as the beneficiaries.

In Canadian law, the court in Kulyk v. Kulyk, 2024 ONSC 4213 recognized the legal authority of the estate trustee to manage and sell the testator’s properties. The court found no need for a vesting order or possession order, as the will already empowered the estate trustee to sell the estate assets. Executors derive their authority from the will itself, not the probate process, and this is what allows them to effectively manage the estate assets.[6]

Similarly, regarding the estate of Michael Jackson, the executors were permitted to pursue the joint venture as the proposed transaction did not violate the terms of Mr. Jackson’s will.[7]   

[1] Dillon, Nancy, “Michael Jackson’s Estate Clinches Win Over Katherine Jackson in $600 Million Catalog War” (Rolling Stone) online:https://www.rollingstone.com/music/music-news/michael-jackson-katherine-sony-catalog-deal-estate-win-1235085158/.

[2] Ibid.

[3] Ibid.

[4] Ibid.

[5] Ibid.

[6] Sculthorpe, Geoffrey, “The Legal Authority of an Estate Trustee to Manage and Sell Estate Properties” (Hull $ Hull LLP) online: https://hullandhull.com/2024/08/the-legal-authority-of-an-estate-trustee-to-manage-and-sell-estate-properties/.

[7] Donahue, Bill, “Michael Jackson Estate Scores Victory in Legal Battle With His Mother Over $600M Sony Catalog Sale” (Billboard) online: https://www.billboard.com/pro/michael-jackson-music-catalog-sale-fight-estate-court-win/.