This is a follow-up to my thoughts after reading Mr. Jackson’s trust. Obviously, he was not an ordinary person and while he was certainly different than my clients, his desires were very similar to the great majority of my clients and to people everywhere.

In his “family” trust, he divides his estate into three shares in the short term. He provides that twenty percent of his gross estate shall be distributed to “one or more charities for the benefit of children and/or children’s causes.” He appoints his mother and the two co-executors of his will to select the charities.

One-half of the remainder of his estate, after all expenses and taxes have been paid, is to be divided equally for his children. Until a child is 21, the trustee is instructed to pay to or use for the benefit of the child the net income of the trust. Any net income not used, shall be added to principal. Upon the child attaining age 21, the instructions to the trustee change only slightly as it appears that all of the net income is to be utilized on behalf of the child. When a child attains age 30, he is to receive one-third of his/her trust; when the child attains age 35, one-half of the remainder or the second third; and at age 40, the child is to receive the balance of the trust.

The remaining one-half to be held in trust for his mother. She is to receive “as much of the net income and/or principal of the trust estate as the Trustee deems necessary or desirable, in his absolute discretion for KATHERINE’S care, support, maintenance, comfort and well-being.” Upon her death, the amount held in trust for her is to be added to Michael Jackson’s children’s trusts.

The distribution scheme, or a variation thereof, for his children is used quite frequently. Query, might he have set-up a different type of trust for his children that would have shielded and protected the assets from creditors, divorce, and wasteful spending.

That is something that I will explore in an upcoming post!