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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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76.

nancy smith    

I feel that Michael Jackson was right in handling the trust for his chilren this way. there will be a lot of gold diggers out there trying to marry these children and then get their money. The allowance they get yearly will most likely pay for their college expenses and other education pursuits. Michael was correct in doing this and also leaving a portion to charity. Michael was a very gentle person, who trusted people when he shouldn't have trusted them. I see that he left nothing to his siblings, and that is the way it should be. the children should always come first, and also his mother.

1605 days ago
77.

jenny    

In fact, I'm here to sabotage the blind worship of celebrities. And yes, it feels good.
But about that dog rescue comment, are you in distress?



Posted at 11:07 AM on May 30, 2010 by King



Well...good for you, have fun. Blind worship of celebrities, HA...you've changed your name again, we know who you are, same BS everyday. You're certainly worshipping something cause you won't leave MJ stories. And...this affects your LIFE HOW?



Have fun..have a roaring time on this website on this holiday weekend. Whatever floats your boat. Wow, so easily amused...gald to know THIS feels good. ICK.



Done playing with you...! Adios!

1605 days ago
78.

sue    

I would agree with some other comments. If someone has some funds or not there should be a trust set up for children with some guideline. I myself had a trust fund with about 50k and the trust wasn't set up so great i was able to win at 19 yr old my court battle and get the funds. I paid my boyfriends yr in university, cleared ALL his debts, paid the rent and utilities for a year, bought him an rrsp and 5k on a used truck. NOT smart! I was raised to know better and although my mother married a great man who had raised me they knew i had to learn a lesson in life all my own and so i did and now i am 30 and see the light of day. mostly, LOL....



at 20 years old there is NO WAY a person is mature enough to handle that kind of money. I am greatful the Jackson kids won't have control and for any and all peraminators that get setup. They certainly won't like it but, in the end they will be better off.



RIP MJJ

1605 days ago
79.

jenny    

Again, why is there even a conversation about this. Every wealthy person, truly wealthy, with any sense of a brain sets up a trust for their children; Gates, Warren Buffett, etc...so their kids don't rely solely on their inheritance. MJ is worth probably billions now, he just was signed the biggest entertainment contract in history - Branca, etc...doing a fabulous job! MJ knew what he was doing! The interest alone will keep those kids in millions and millions. Again, love, love that he left a portion to charity. So thoughtful!



I have a trust fund, this is how it was set up for me, exactly the same way, with full trust paid out at 40, same with my brothers.



There's NO discussion here. This is fantastic he did this and he was very smart and thoughtful. He loved his kids, obviously.



RIP, MJ

1605 days ago
81.

frankiestage    

I guess one could argue that Michael should have left money to his siblings, but his brothers I'm sure got enough money through their careers and from him when he was alive to have made them millionaires outright if they had handled it appropriately. Plus I'm sure they're making money off the various projects that are now happening that MJ probably wouldn't have agreed to do were he still alive (what did Joe recently say? "He's worth more [to me] dead than alive."). And if worst comes to worst, they know mom's getting paid.

1605 days ago
82.

Cathy    

When I first heard the major tenents of Michael's will:



1) that he left the bulk of his estate to his children



2) that he named Katherine as guardian of his children



3) that he left 40% of his estate to Katherine until she died



4) that he left the rest to charity



my initial reaction was -- that sounds exactly like Michael. Nothing fishy, nothing sinister, no negative "messages" being sent to anyone who wasn't mentioned - just typical Michael doing what made sense, protecting those who needed protection, and trusting his beloved mother whom he adored, with his own children - knowing she would give to them what she gave to him. End of story really.

1605 days ago
83.

Tim    

30 you morons ? 40 ?



THEY ARENT KIDS AT 30 or 40




the point of a trust fund is to start a life when they turn into adults granted 21 is not really an adult buy by the time ur 30 u should have ur life going and that money can go along way



if they wait longer they are gonna end up like usual spoiled trust fund kids that are only waiting for it to kick in



1605 days ago
84.

john johnson    

not such a terrible idea, however, when these kids turn 30, are the trustees going to still be alive? the allowances should be based on the value of the dollar in the future and the jackson family should be the one to choose the trustees when these one are no longer living.

1605 days ago
85.

john johnson    

not such a terrible idea, however, when these kids turn 30, are the trustees going to still be alive? the allowances should be based on the value of the dollar in the future and the jackson family should be the one to choose the trustees when these one are no longer living.

1605 days ago
86.

Ginger    

I was totally disgusted at what the Jackson family did to those poor kids for MJ's funeral. They must have been sprayed dark brown and their hair dyed black. All the pictures I've seen of the older boy and girl show blondish hair and light skin. As for the money, I think MJ got it right. I worry as to who takes over the kids when Katherine dies. Lets hope she stays around to raise them.

1605 days ago
87.

Ray    

The entire family has been riding on M.J‘s. coat tails, hell his kids might as well get the money before the family blows it all, it’s funny you didn’t hear much about his Mom and Dad or his brother’s till his death.



Now they all are on the free bus ride, the money belongs to his kid’s………………..

1605 days ago
88.

jenny    

my initial reaction was -- that sounds exactly like Michael. Nothing fishy, nothing sinister, no negative "messages" being sent to anyone who wasn't mentioned - just typical Michael doing what made sense, protecting those who needed protection, and trusting his beloved mother whom he adored, with his own children - knowing she would give to them what she gave to him. End of story really.



Posted at 11:22 AM on May 30, 2010 by Cathy



Cathy, very well said. It's so simple, why would he leave his money to his siblings, they're grown ups. It's exactly what makes sense, he took care of those he felt he needed to. All with LOVE.

1605 days ago
89.

jenny    

97. I was totally disgusted at what the Jackson family did to those poor kids for MJ's funeral. They must have been sprayed dark brown and their hair dyed black. All the pictures I've seen of the older boy and girl show blondish hair and light skin. As for the money, I think MJ got it right. I worry as to who takes over the kids when Katherine dies. Lets hope she stays around to raise them.



Posted at 11:27 AM on May 30, 2010 by Ginger




OH please, you people are ridiculous. It was the middle of summer when MJ died, they live in LA..maybe they had been playing out side and had tans for god's sake.

1605 days ago
90.

kim    

91. http://www.youtube.com/watch?v=DPe_c5F-_Ng;



Posted at 11:19 AM on May 30, 2010 by Phantom of the opera



Thanks Phantom. If only the tabloids would do some stories on this part of his life. The great humantarian he was. Even after death giving 20% of his estate. But I guess not because then they would be putting him in a good spotlight.



Anyways, I think it is great he set the trust up like this. His kids will be old enough and mature enough to take care of it properly. And until they reach that age, they will still be taken care of. He loved those kids and they him. And to see his mom taken care of is great also.



RIP MJ. you are truly missed and will never be forgotten

1605 days ago
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