Only if the estate can pay the tax bill! 

Financial Planning is essential.  It’s never too late to correct your errors or put an estate plan in place, if you have neglected to do so up to this point. 

Early this week the judge presiding over Michael Jackson’s estate ruled in favor of the co-executors listed in Jackson’s 2002 will. Mr. John Branca, a renowned music attorney and Mr. John McClain, a music executive will now take control of the Jackson estate. Together, with a team of legal advisors, they will orchestrate strategies to assess opportunities embedded within Jackson’s assets including real property, music, video and publishing rights. Overall, the estate value could increase significantly as people want to remember Jackson’s legacy similar to Elvis Presely’s estate.  Could Neverland become the next Graceland?  Should Jackson have had better comprehensive financial planners?  or a single high-quality financial advisor?

Now, the co-executors are facing an estimated $80 million dollar federal estate tax bill due within nine months from the date of death. Unfortunately, most of Jackson’s estimated $236 million estate, as reported by The Associated Press March 2007, assets are relatively illiquid and difficult to value. Until a final valuation and liquidity solutions are in place the executors are expected to request a tax payment extension from the IRS.  In special cases, estate tax can be spread out for a period up to 14 years.

This scenario sets itself up to have assets with significant intrinsic value to be sold off at discount prices. Remember to visit with your favorite investment advisor to ensure your estate has liquidity strategies in place to comfortably settle your estate.

Search: Financial Advisors with a specialization in Estate Planning.