Michael Jackson's Lavish Spending Habits Left Him More Than $500 Million in Debt at the Time of His Death

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Source: MEGA

Jun. 27 2024, Published 4:42 p.m. ET

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Michael Jackson left behind more than $500 million in debt when he suddenly passed away on June 25, 2009, according to new court documents.

The late pop legend's wild spending was reportedly to blame and according to a previous report, he had been steadily gaining roughly $30 million in debt per year leading up to his death.

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Michael Jackson was roughly $500 million in debt at the time of his passing.

Back in 2013, his public accountant William R. Ackerman claimed Jackson had been "tapped out" after spending his millions on jewelry, gifts, art, travel and charitable donations.

In March 2024, the estate executors attorney John Branca and A&R executive John McClain and their respective lawyers said that the estate was stuck with the exorbitant debts and was nearly bankrupt.

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Michael Jackson died in 2009.

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The singer's financial problems continued to snowball after his unexpected death with "more than half a dozen lawsuits pending worldwide" and more than "65 creditors' claims were filed in the Estate spawning additional lawsuits, of which several resulted in litigation," per the legal documents.

Many of the lawsuits were able to be "renegotiated and restructured" by the executors' legal team after Jackson's passing which led to "substantially reduced interest rates." This way, the estate was able to avoid any major loss of assets.

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His estate was left to his three children — Prince, Paris, and Bigi.

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The "Smooth Criminal" artist's beneficiaries are his three children — Prince, Paris, and Bigi. The estate later agreed that in six-month increments, the lawyers involved should request the court authorize 30 percent of their compensations go to the debts and 70 percent to the kids for them to keep.

"Although the Executors have eliminated the Estate's debt, have resolved virtually all of the creditors' claims and litigation, and have successfully solidified the MJJ business as a significant entity in the music industry, there remain challenging business, tax and legal issues that the Executors and their counsel continue to deal with," the court documents clarified.

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This comes shortly after the kids came together to honor their late father on the 15th anniversary of his death.

"Miss you pops," Prince — full name is Michael Joseph Jackson Jr. — wrote via social media that day. "The world felt better with you in it."

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Michael Jackson was 50 years old when he passed away.

People reported the details of the legal filing pertaining to Jackson's debts.


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