• 20
  • December
    2011

Estate planning requires much more thought and planning than simply writing down where you want grandma's ring to go, especially for those with measurable wealth. Many high asset individuals may own businesses and do not want to interrupt operations, have the business sold or let it end up in non-family hands. Even stock and other investments require careful planning prior to and after the death of the testator. Estate administration is just as important as estate planning.

Michael Jackson seemed to choose the executors of his estate wisely. Before his death, his estate was bankrupt. Although he was considered one of the most talented singers in history, the assets in his estate were tied up and draining. Only a few years after the death of the famous singer, a court judge approved an pay increase for the executors after they turned the bankrupt estate into a multi-million dollar success.

Since the death of the singer, the executors have helped the estate earn over $310 million through the management of the assets. The original payment agreement for the executors was made in February of 2010 when they agreed to accept 10 percent of entertainment-related earnings minus exclusions, including profits from the film "This Is It."

The executors argued that more of their time and resources were required to manage the entire estate and develop new projects to increase profit. The management requirements were more than originally anticipated. The judge granted the executors a percentage income from several projects which were once excluded.

The beneficiaries of the estate include his mother Katherine, and his three children. While an increased pay structure for the executors technically eats into their profits, they are more than willing to share a higher portion of estate when it is turning a significant profit. "It is quite clear that what [the executives] are proposing is going to be fair to the estate," said the interest representative for the children.

Source: Associated Press, "Judge approves pay bump for Jackson estate execs," Anthony McCartney, Dec. 19, 2011