For most people, avoiding probate is generally the better course to take in creating an estate plan. However, in rare instances probate may actually be the better course. Michael Jackson’s estate seems to be one of these rare cases.
One of the main benefits of probate is that the entire process is under court supervision. For most small to mid-sized estates, this may be an unnecessary and lengthy process. But conversely, where an estate is substantial in size and plagued with a long list of creditors, court supervision can help smooth out problems. Court supervision guarantees an accurate accounting of the assets and debt and will greatly deter false creditor claims from being filed against the estate. And even better, if a creditor’s claim is not asserted within a four month period the claim is barred forever.
Michael Jackson’s estate is rumored to be worth $500 million but more than half of that amount ($300 million) is owed to creditors. Yet, Michael Jackson’s apparent desire to keep his estate administration out of the public eye took precedence over warding off bad creditors and frivolous lawsuits.
