Jackson's Mom Loses Bid to Control Estate

Judge Says Late Singer's Lawyer and Friend Designated in Will Should Oversee Assets

(CBS/AP)  A judge said Monday that Michael Jackson's longtime attorney and a family friend should take over the pop singer's estate for now, rejecting a request from Jackson's mother to be put in charge.

Los Angeles Superior Court Judge Mitchell Beckloff backed attorney John Branca and music executive John McClain, who had been designated in Jackson's 2002 will as the people he wanted to administer his estate. Attorneys for the pop singer's mother repeatedly objected to their appointment at Monday's court hearing.

Jackson died June 25, deeply in debt. But a court filing estimates that his estate will be worth more than $500 million. His assets are destined for a private trust.

The singer's mother, Katherine Jackson, had applied to oversee her son's estate, but that was before the will surfaced. Her attorney, Burt Levitch, expressed concerns about McClain and Branca's financial leadership.

Levitch told Beckloff that Branca had previously been removed from financial positions of authority by Jackson. Branca's attorney says he was rehired by Jackson on June 17, days before Jackson's death.

Katherine Jackson did not appear at Monday's hearing. Branca did attend.

"This isn't a shock, especially since Jackson's 2002 will is now presumed to be valid absent any serious challenge to it," said CBS News legal analyst Andrew Cohen. "The ruling gives the executors of that will power now to act on Jackson's behalf in financial matters but it's not a permanent order and it's conceivable we could see future challenges to their power."

"The body isn't even in the ground yet. It's very, very early in this process and we could easily see more changes here to how the estate is handled," Cohen said. "But right now the judge is giving the benefit of the doubt to the instructions offered in Jackson's 2002 will, which called for non-family members to execute its provisions."

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Levitch said it was unclear whether McClain would serve as an administrator because he was of ailing health. Attorneys for McClain and Branca described him as having a physical disability but having a completely sound mind. They also noted a decades-long relationship with the Jackson family.

Branca and McClain will have to post a $1 million bond on the estate, Beckloff ruled. Their authority over the estate will expire Aug. 3, when another hearing on the estate will be held.

"Mr. Branca and Mr. McClain for the next month are at the helm of the ship," Beckloff said.

Katherine Jackson's attorneys had asked that she be appointed to serve as a co-administrator with Branca and McClain. Beckloff refused to grant that request.

The judge granted Branca and McClain several powers over the estate, including the rights to negotiate a settlement with concert promoter AEG Live over refunds for Jackson's canceled London shows. Beckloff stressed that Katherine Jackson should be given complete information about major transactions, but that he as the judge would grant final approval.

The Death Of Michael Jackson, Full Coverage

John E. Schreiber, an attorney for Katherine Jackson, said, "Frankly, Mrs. Jackson has concerns about handing over the keys to the kingdom."

Paul Gordon Hoffman, an attorney for Branca and McClain, said some of Katherine Jackson's concerns were unfounded.

"We're not aware of any real conflicts at all," he said in response to a claim that the men may have business dealings with parties such as concert promoter AEG Live.

In contrast, Hoffman said Jackson's mother had more of a potential conflict administering the estate because she is a likely beneficiary.

"If there are any conflicts by the parties, Katherine Jackson rather than Mr. McClain and Mr. Branca have them," Hoffman said.

Beckloff noted the contentious relationship brewing between Katherine Jackson and Branca, who personally delivered the will to the family's home a week ago.



"We're getting off to a bit of a rocky start here out of the gate," Beckloff said toward the end of Monday's hearing.


"It's important with such a complex estate involved, and with so many pressing business matters to attend to, for the judge to act quickly, at least on the financial side of the Jackson legacy," CBS' Cohen said. "It's a ruling that turns the singer's mother from an administrator into a beneficiary since that's what the 2002 will called for."

"This ruling has nothing to do with custody over Jackson's children but if this will indeed is determined to be valid down the road it'll be strong evidence of Jackson's wish to have his mother, and not Debbie Rowe, have primary care for the kids," Cohen added. "So that may preclude Jackson's mother from challenging the will after all."

A public memorial has been scheduled for Jackson in downtown Los Angeles on Tuesday. More than 1.6 million people registered to win the coveted free tickets, and only 8,750 names were chosen.

Los Angeles officials are concerned about other fans clogging city streets

Downtown hotels were quickly filling Monday, and police warned those without tickets to the memorial to stay away.

[toldyouso29]

Who are they kidding? lawyers are automatic beneficiaries since they can milk every action, letter, phone call or phony billable hours they can come up with to the estate--this means a goose that lays golden eggs for Branca--someone should check to see if he poisoned Micheal or got hold of drugs and gave them to the singer before he died--this is pretty fishy that he would be in charge of and be reinstated for the estate just in the nick of time for the death.

[stn_sage]

I don't know what MJ's relationship is amongst his parents and siblings but with the exception of his sister and one of his brothers, I was under the impression that they had "chilled" long ago---for one reason or another!

So, I find it interesting now, that it seems like EVERYONE is 'coming out' to attempt to have something to say about what happens to HIS estate!

Geez! Amazing how parasitic relatives, friends, and strangers can be when someone dies!

I'm surprised his relatives haven't announced a time and date and told 'all comers' to show up at Neverland for a 'grab 'n bag' run through the estate! But, then that would leave less for them to fight over, wouldn't it?!

[Newster1]

rejecting a request from Jackson's mother to be put in charge"

Good, she's what? about 80 years old? what does she know about executing an estate of this magnatude??

[jack20083]

It's James Brown estate all over again. Why write a will for the lawyers to steal your life's work away from your family and to include themselves in your will? It should be a flat fee for them. They know how to run the tab up. I am his friend and lawyer routine. This is BS. You are a hired help and that's just it. Creditors don't own anything until you show the ability of not being able to pay them back. Since Michael Jackson's estate has that future earning power, give his sh*t to his family and let them handle it. Where were all of these people when Michael needed them to speak up for him during the trial? Where were your public display of friendship then? Why try to use your friendship to try to separate this family? Why? They all see money that don't belong to them. Don't trying to place doubts in this family because they got here without their help so let them enjoy their life long work of good, bad, evil, etc. It's their money, their son, and their grandkids. We have no rights on it or any legal claims on it. Let this family be! If this madness doesn't stop, which superstar's family will be next? Yes, money is the root of all evils. If you aren't a Jackson and making a claim on the estate, you are morally wrong.

[g8turgirl]

I'm a Florida paralegal, and while the Probate Code rules nationwide, most states do vary as to the procedure for probating. MJ's Estate is way bigger than anything Katherine Jackson can possibly imagine inasmuch as probating an Estate is concerned. The paperwork at times will be phenomenal, it's stressful especially when dealing with the unknown--a family member's personal finances, debts, trying to locate important documents, etc. She should be glad that attorneys are handling the Estate. They'll keep her well informed, she'll get copies of all pertinent documents for sure. She's distraught right now and in cases such as this, especially where a parent has lost a child, or the death of a loved one is totally unexpected, family members stay in a somewhat anxious state usually until the Estate is closed, which can be years. Because of that, the attorneys must treat them with the utmost care to avoid animosity towards others, conflicts with relatives, outsiders, and in some cases, downright fist fights between family, personal representatives, trustees, guardians, etc. Add to that, the high profile of MJ, and you have a tremendous job to perform. I predict that after all is said and done, she'll be very glad she was denied the chance to handle the Estate. And I'm sure those are at least some of the reasons why the Judge did what he did. He made the right decision, no doubt. As far as people failing to take Estate planning serious and preparing for the inevitable when they are in good health, it's a huge problem. The disasters that occur after someone passes away and the family has to "pick up the pieces" and make decisions that the Decedent should have made, are a whole other story. If you have a family, you owe it to them to get your affairs together years before you think you will need to do it. Who takes care of the loose ends after a death? Those left behind to grieve, and that's absolutely NO time to be trying to make decisions and arrangements! Call your attorney today and discuss Estate Planning--it's easier than you think!

[toldyouso29]

You miss the point. Katherine had her own attorneys to handle all the aspects of the estate. What she did not want was the lawyers whose ties to and expenditures of the money is likely to siphon off large amounts for phony lawyerial expenses that do not benefit anyone in the family at all--at the very least the benefit should be to the relatives of Michael and not to the blood sucking lawyers--somebody check and find out the judge's affiliation to the 2 lawyers--I would not be surprised if somehow a lot of people will be receiving kick backs of some sort.

[kerry4ever]

I do think it is a nice touch that if she contests the will then she may become an executor but would lose custody of the children, as she would have to argue that Michael was of sound mind in some things but not in others. It shows how smart Michael was, as even the wisdom of Solomon won't help her with this conundrum.

[pennsygirl1]

It's only prudent to separate the administering of the estate from the beneficiaries of the estate. My sister and her husband have only a miniscule amount of money compared to Michael Jackson, but they set up separate "guardians of person" and "guardians of purse" for my nephews. Absent another, later dated will or codicil, or reputable evidence that such a change was in the works, the ruling is correct.

[tmittelstaed]

There is nothing wrong with designating a beneficiary as executor for a will. Many people designate one of their children for this. As long as the will specifies in detail how the assets are to be disbursed, there should not be a problem as long as the child selected is a trustworthy person.

The unfortunate part about all of this is that MJ's will is dated 2002. I doubt many people would be that happy about their will choices they made 7 years ago. This situation is a good reminder to people who have a will to make sure to update it.

[45ford]

tmittelstaed - you make valid points. my sister is a paralegal who works for a probate attorney and the stories she tells about people who fail to update their last will & testaments are real eye openers. a will should be treated as a living 'n breathing document -- continually evolving and kept in tune as laws and circumstances change. for whatever reason, most don't seem to do it.

[saturn05]

Isn't it odd that a few days before his death they say a new arrangement was made???

[45ford]

hey CBS... what happened to the breaking news flash you had in bold red font across the top of the home page more than an hour ago that the LA Mayor claimed MJ would be buried at Forest Lawn tomorrow at 8am PT ??? the "news flash" disappeared and there's been no follow-up story posted which is highly unusual for "breaking news". were you reporting news or unconfirmed rumors?

[realitychec6]

As always, the DOLLAR rules !!!! People will sell their soul for it !!!

[Questionews]

I only allow a one year lease my soul and charge up the wazoo if there's any damage upon return. Yeah, there's s dent here & there, but it's still in really good shape.

[despido]

Her facial expression in the photo says it all.... 'Sheet, there goes them millions'.

[wslady]

The picture was taken on the 5th. The judge ruled on the 6th.Read before you write.

[45ford]

the whole ordeal has got to be taking a toll on the family... being stunned by his death, caring for his kids, Joe Jackson's antics, one autopsy leads to a second, public scrutiny, the involvement of drugs in his death, privacy & safety concerns for his remains, burial & memorial arrangements, the probate of the will, potential custody battle, hundreds of millions at stake, countless untold/unknown other issues ... then i read today where a decision was made to remove all of MJs brain for neurological testing & studies to ascertain the duration of his alcohol and drug use. all of that and more leads to a heavy mental toll on survivors. will all those things going on, they've had little time to mourn.

[andie52]

Works for me;someone other than family needs to manage the estate which protects the children.

( The next hearing in the probate case is set for Aug. 3.)

[Ripicco]

World class news! I feel sorry for the poor guy that has to write these articles and those who actually read them. Give us some real news

[realnews12]

Why do you click on this article if it's not the news you want to read ?

[u-r-right]

Katherine looks exhausted. I hope all works out for the benefit of the kids and if they do end up with her, I hope she will hire some of the best nannies available to care for them becauase she won't be able to for long.

[dragyn30]

I know she does not think this is a blessing right now, but later on she'll be happy about it. The designated people have tons of legal woes to sift through before the estate can be settled.

Al Sharpton needs to disappear! He may very well be the reason why the judges ruled the way they did - Sharpton is in it for the money he can pinch from the grieving family. He is nothing more than a loud-mouth jerk who is taking advantage of a hurting family!

He thinks the court is insensitive! IT IS LAW!!! No different that if it were any of us mortals!!! They need to stop people from judt coming in and cleaning out the house!

This has taken up way too much news space and while I liked most of his music and dancing ability that is where this ends. He did not manage his money nor his personal life very well at all and if his family had stepped in as quickly while he was alive to gain control of his affairs he may still be alive.

Sorry to be so cruel, but I am sick to death of seeing this on the news it is not news!!! He used his celebrity status to get medicines/drugs that he should not have gotten. Now the grieving family wants control of his money - where were they a few months ago!!

[45ford]

good points and insightful perspective. anyone who has been an executor of an estate that's mired in issues know where you're coming from. i think you hit the nail on the head about the blessing in disguise for Katherine Jackson losing control of the estate. enormous financial gain seemed to be her motive for wanting to administer the estate. she's already proven to be incapable of managing finances after her and Joe filed for personal bankruptcy which involved very few assets and astronomical debts. and there is infinitely more at stake with MJs estate than what they were even remotely accustomed at managing. good move by the court to toss her off the estate.

[tmittelstaed]

If she gets custody of the kids, the usual procedure is for the estate funds to be put into trust for the children, and she will have to submit proof of expenses for the children to be reimbursed for them. I forsee a long and contentious relationship between her and the trust administrator.

[45ford]

i'm not sure what state you live in, but where i'm from the guardian of the kids and the trust administrator can be the same person so there aren't any checks & balance for which expenses are scrutinized. in the case of my 2 little brothers, they should of had plenty of funds to get them through much of college, but the guardian went on several spending rendezvous for herself then used her position of authority to access the trust to reimburse herself. when it all came to light it was too late. virtually the entire trust from my 2 brothers had been spent by the guardian and they had nothing to show for it.

[6591Hou]

Apparently Michael had a plan, and he either didn't share it with his mother or he did and she doesn't agree with it - in either case it's not her call.