Michael Jackson’s children’s £900 million inheritance could be drastically slashed.
Big bills mean that Prince, 19, Paris, 17, and Blanket, 14, could see the money and their trust funds, which they reportedly have access to at 30, wiped out.
Insiders have reportedly claimed tax authorities in America are chasing the late singer’s estate for £555 million, while the late singer is believed to owe more than £300 million in other debts.
“On paper the kids are billionaires thanks to these massive sums. But the truth is those sums will barely be in their accounts for any time as they have this huge tax bill to settle,” a source told The Sun.
“The IRS (Internal Revenue Service) had been public about their demand asking for as much as £555 million, with more charges coming for late payments.”
The singer’s stake in Sony/ATVMusic Publishing was recently sold for $750m (£526m), after he originally paid $41.5 for the rights.
It’s thought the tax on the deal will total roughly £70 million.
The source added: “The estate has challenged that enormous figure, but the Sony deal simply ups the amount they owe.”
Meanwhile, Michael’s former Neverland ranch is still failing to spark any concrete interest after going on sale.
The huge property and grounds went on the market in 2015 but so far hasn’t managed to tempt buyers with its $100m price tag.
Michael bought the property in 1987 for $19.5m.
However in 2008 it was handed over to investment firm Colony Capital LLC after the Thriller star ran into financial troubles.
Following his death in 2009, the ranch fell into disrepair.