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Michael Jackson's Trust Lacks Trust in Kids

5/30/2010 11:26 AM PDT BY TMZ STAFF

Michael Jackson apparently learned a lesson in finances -- his kids should not fall victim to consumer temptations that caused Michael himself to teeter on the brink of bankruptcy -- this, according to the details of the strings he attached to his children's inheritance.


News of the World got a copy of the Michael Jackson trust. TMZ broke the story ... under the trust the kids would get 40% of Michael's estate, Kartherine Jackson would get the use of 40% during her lifetime (when she dies the remainder of her share goes to the kids) and the final 20% goes to charity.

Here's what's interesting ... that we didn't know until now.  Under the trust, Prince, Paris and Blanket  have no control of the money until they are 30 years old ... until they turn 30 they just get income -- almost like an allowance -- determined solely by the trustee.  When each of the kids turns 30, the trustees must then give them 1/3 of their share outright.  When the kids reach 35, they get 1/2 of their share outright.  

At age 40, the kids then get what remains of their share -- outright. 

We've already published the will -- different from the trust.  The will refers to the trust but the trust document has not been public until now.

As for how much the kids will get, that amount grows every month, as executors John Branca and John McClain wheel and deal in business ventures that include concerts, movies and song releases.

565 COMMENTS

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1.

Butterfly    

LOVE AND MISS MJJ

1543 days ago
2.

Liz    

I hope there's a way in the trust for them to go to college. If there not getting any money at 21 they might not be able to go to college without the money. You never know they might actually grow up like most normal kids and want to go to college to become something. Which takes at least 4 years, more if you go for your master's etc.

1543 days ago
3.

trista    

This is a great thing to do, even if you are not wealthy, and don't have much to leave to your kids. We have a similar plan for our children, and the main reason is to protect them from those who might come into their lives to take advantage of them. Another concern to have is that when our children get married, and then divorce, the spouse soon to be ex, might try to take what you left for your kid.
If they go to school, work hard, and live a sane and productive life, they will be ok.

1543 days ago
4.

Crystal    

I think its great that the trust is spread out until they are 40 years old, otherwise they might squander it away or be taken advantage of and scammed out of it as young people. I just hope it doesn't make them lazy where they just sit around waiting for a check every month and never accomplish any thing in life.

1543 days ago
5.

WordOutlet    


Dr Troot is in dire straits. Please take care of him and his family first :)



1543 days ago
6.

Mason    

Liz....



The sentiment of your comment is good, and I completely agree... but I think realistically their "allowance" would more than cover college tuition, and the trustee's would certainly deem that an appropriate expense. I don't know what the exact numbers were, but wasn't Katherine getting $50,000 a month, even during probate? Even on the higher end of things, let's say the kid's need $200,00K a year for tuition/board/transportation etc, I certainly expect the fund's trustees would be willing to pay it.



What I'm interested in, is who will become the trustees of the estate over the course of the next 30 years? (Once the "Johns" have passed on). Does it stay within their respective firms, or is a new trustee appointed based on the children's wishes? TMZ, can you shed any light on this?

1543 days ago
7.

jenny    

This was very smart on MJ's part, they are still going to be very very rich, even their allowance will be massive. go to college, yes...I'm certain his kids can go to college, crackin' up.



Most wealthy people set up trusts this way. It encourages their children to not depend solely on their inheritance, but to strive for their own career, interests, education, etc...MJ was brilliant doing this and shows what a great father he was and wanted his children to work and succeed in/with their own endeavors.



I've had a trust fund all my life with a trustee, I was able to get the remainder of it too at 40, this is done to ensure the children are mature enough to manage their money and also, at a more mature age, they've hopefully pursued their own sources of generated income along the way. Gates, W. Buffett, etc...all have similar trusts set up.



Amazing again, MJ leaves 20% of his fortune to children's funds and charities. Amazing man!

1543 days ago
8.

KWDragon    

I don't think your poll is valid. The kids should get the money at whatever time Michael said they should get it. It is his money, and they are his kids, so it was his choice.



And for the racist post on mixing with "whitey," Michael made his own choices. First, I doubt you are an expert on genetics and know everyone's "true" lineage. And second, how dare you tell someone that a child not of their own "flesh and blood" is not his child!



You display your ignorance on both counts.

1543 days ago
9.

Lekili    

He was thinking about their future and that's wonderful. Why give it to them all at once so they can they spend it and then be broke?
I am sure we are talking about huge sums of money here and given the fact that it's doled out in stages, it will make even more money for the children ,it's called interest.
I am sure MJ had seen enough people in his lifetime blow through a fortune and have nothing at the end of the day.

1543 days ago
10.

nan    

i think that is smart. that is so much money so many people would be trying to take advantage of them or they would fall peril to excess themselves. if they are older , they will be able to see this from a mature point of view
hopefully nobody will be robbing them blind before the money gets to them
maybe they should hire some people to watch the people in charge of the trust
thats a lot of money to be tempted by

1543 days ago
11.

jenny    

by dustin



alfonso west...



maybe you can get some money from your parents to hopefully get the therapy you need. If you can't write something half AZZ intelligent regarding a serious matter, move on. It's a holiday weekend; go to some hospital, do some charity work, if you're so damn concerned about abused children. You're ridiculous.



You're just a stupid kid...sorry to say.

1543 days ago
12.

jenny    

Like I said Black folks need to stop mixing with Whitey. They don't like you and we keep trying to mix with them. Leave them alone especially Black Men and stick to your own. Love your own people first.




Posted at 8:05 AM on May 30, 2010 by why?




WHAT, WTF. What century and area of the country do you live in for god's sake, funny how you mentioned god in your post. i'm gonna barf with this comment.



Ah...YES, we WHITE people do like black people. We, mature, educated, progressive, normal, educated people don't care what color skin, gender, sexuality, etc...someone is, it's no one's business! We, the majority of the people in this world, wish for others to be happy!

1543 days ago
13.

Siggisis    

6. I am sad that those kids are even getting that. I don't feel they should. That money should go to own flesh and blood.




I don't know why black people always want to add whitey in their life and then at the end of the day they got your money that you and your family worked for. I hate this. Black people stop mixing and keep your money in your own family. Haven't we learned.



Posted at 7:55 AM on May 30, 2010 by why?



Are you nuts?
First, those kids can very well be Michael´s biological children - I think they are. Secondly, if they aren´t, they are still his kids.
What you are saying is simply insane - do you really mean that adopted children shouldn´t inherit from their adopted parents?? That IS nuts!

1543 days ago
14.

Lekili    

Post #6, are you serious?



It's thinking like yours that will keep races at odds with one another. Make no doubt about it, those were MJ's children, they were his life and the loves of his life. You should be so ashamed of what you posted on this page.

1543 days ago
15.

dd    

Good job Michael!

1543 days ago
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