Thanks to our friends at LA, I was able to get the MJ Estate Fourth Accounting.
You can find my summary of the fourth accounting below. Document is linked below (I omitted the first few pages as they are pretty much the same as the previous accounting documents summarizing MJ Estate. )
MJ Estate Fourth Accounting document : https://www.scribd.com/doc/270231894/Mj-Estate-4th-Accounting
Summary of MJ Estate Fourth Accounting
Fourth accounting period covers January 1, 2013 to December 31, 2013. (First accounting covered June 2009 to October 2010, second accounting covered November 2010 to December 2011 and third accounting covered January to December 2012).
From third accounting we know that MIJAC debt is fully paid. No property was sold during the fourth accounting period.
Estate is not in a position to be closed yet. Executors are asking for administration of the Estate to be extended for one more year.
Inventory, assets and business activities are same as the previous accounting documents. There are still several probate claims against Estate that are ongoing. Estate tax dispute with IRS is another legal matter Estate needs to resolve as well.
Schedule D shows net income from trade or business during third accounting period (Jan 2013- Dec 2013) at $40,333,827. (Gross income is $67,407,156).
Payments to Katherine and MJ’s kids are as follows (Jan 2013 - Dec 2013)
- Kids allowance $ 4,347,020
- Katherine allowance $1,200,477
- Calabasas residence expenses $455,263
- Other expenses $51,411
- Insurance (health and property) $125,147
- House employees $471,469
- KJ & TJ Guardianship lawyer fees $247,482
- Guardian ad litem fees $72,973
- Utilities costs $38,814
- Security $369,468
- Repair & Maintenance $809,767
- TJ Jackson guardianship fees $154,071 (new for fourth accounting)
Total $8,151,308 (A footnote lists total as $7,838,988. See tidbits for details)
Note: Estate states from time to time they adjust (meaning increase) these allowances. Kids allowance shows an increasing trend. The fourth accounting annual allowance numbers $4,347,020 is higher than the third accounting allowance amount of $3,064,009. On the second accounting period kids allowance was $2,139,194 .
Estate paid $10,004,148 in taxes and licenses. Estate's legal expenses for 2013 is over $4.5 Million.
Estate paid $170,609 for appraisals. Estate has paid $12,176 for the ongoing archiving project. They paid $789,142 for storage of Michael’s property. Estate employees were paid $47,494. Estate paid $769,155 for public relations.
Estate paid several consulting fees. They paid $1,300,000 consulting fee to Katherine Jackson (paid to Perry Sanders and originally $1.5 Million but reduced by $200,000 to pay back previous loans (over $6.5 Million) given to Katherine Jackson). Estate also pay $6,033 per month to Jackie Jackson as a consultant.
Estate has paid $16,500,000 on loan principal payments. As MIJAC debt was paid in full on third accounting, all of this money went to pay Sony/ATV debt. As of December 2013, Estate had $25,643,060 as cash or equivalents.
Estate has earned $2,294,737 from royalties.
Total Co-executive & creative director compensation is $3,838,790. This is lower than the third accounting amount of $4,454,011.
Tidbits:
- For $141,825 Estate has chartered a plane for family to attend to MJ One.
- Estate have paid for Prince's Ford F150 Raptor. It cost $64,424.
- Estate had paid a $10,000 retainer fee to WebSheriff.
- Estate has paid $37,776 for Domain Search and Renewal fees.
- Estate has paid $314,320 in expert witness fees for Arthur Erk from Citrin Copperman. Erk testified as an expert witness for Katherine Jackson during AEG trial saying MJ could have earned $1.5 Billion from TII. Erk's fee has listed under family allowance hence resulting in reporting of two different numbers. ($8,151,308 total number versus the $7,838,988. The difference seems to be Erk's witness expert fee).
Link to previous MJ Estate Accounting articles
MJ Estate Second Accounting article : http://dailymichael.com/the-estate/8-mj-estate-second-accounting-document-summary
Estate Third Accounting article : http://dailymichael.com/the-estate/9-mj-estate-third-accounting-document-summary
Accounting Timeline
MJ Estate First Accounting - Filed February 2011 - Covered June 2009 to October 2010
MJ Estate Second Accounting - Filed July 2012 - Covered November 2010 - December 2011
MJ Estate Third Accounting - Filed February 2014 - Covered January 2012 - December 2012
MJ Estate Fourth Accounting - Filed June 2015 - Covered January 2013 - December 2013.