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Will Katherine Jackson's Bankruptcy Work Against Her?

Posted By admin || 10-Aug-2009

According to an article in the Star-Telegram , Michael Jackson's will may be contested by his mother Katherine Jackson. Mrs. Jackson wants a seat at the table of the estate's trustees; but will her bankruptcy work against her?

The article said:

"Jackson relied on his 79-year-old mother for more than emotional support: Documents show he put her in the position of trustee on contracts, including his lucrative Sony-ATV catalog, and associates say he also sought her input on other financial matters as he became more wary of those in his business circle."

"Katherine Jackson has not previously been known for her business acumen. It was Joe Jackson who was the manager of his sons as the Jackson 5, and acted as the manager for all of his nine children into their adult years. But Manning claims it was Katherine, not Joe, who gave Michael Jackson his business sense, which he described as shrewd and fair."

Katherine Jackson is currently filing a motion with the court to see if seeking a trustee role in the Michael Jackson estate will mean automatic disinheritance. Michael Jackson's will has a "no contest" clause. In determining whether Katherine Jackson should have a role as a trustee in the estate the court will probably look carefully at Katherine's bankruptcy 10 years ago and her trustworthiness. When Katherine and Joe Jackson filed for bankruptcy 10 years ago, the bankruptcy papers listed nearly $24 million in debt that included court judgments, auto loans and credit cards. The bankruptcy court records also showed that the Jacksons' only valuable asset was a house in Las Vegas valued at $290,000. To combat the negative perception of the bankruptcy, the Jackson attorneys will most likely show how financially responsible Katherine has been since her bankruptcy and focus heavily on the amount of trust she had with Michael Jackson and how she dealt fairly with others in business dealings.. The primary role of a trustee in the case of a deceased person's estate is to deal with matters fairly and in a trustworthy manner. Trustees are not required to be professional businesspeople.

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