Jackson’s Mom Loses Control Of Estate

Los Angeles Michael Jackson Judge Says Late Singer's Lawyer and Friend Designated in Will Should Oversee Assets..

by CBS/AP

Published: Mon, July 06, 2009 - 11:57 am CST Last Updated: Mon, July 06, 2009 - 11:59 am CST

(CBS/AP) A judge says Michael Jackson's longtime attorney and a family friend should take over the singer's estate.

Los Angeles Superior Court Judge Mitchell Beckloff issued his ruling after a court hearing Monday morning. Attorney John Branca and music executive John McClain had been designated in Jackson's 2002 will as the people he wanted to administer his estate.

Jackson died June 25, deeply in debt. But a court filing estimates his estate will be worth more than $500 million.

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.

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.

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

Beckloff did not grant that request. Beckloff is now considering which powers over the estate to give to McClain and Branca. He will take that issue up after a short recess.

A public memorial has been scheduled for Jackson in downtown Los Angeles on Tuesday.

"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."

"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," Cohen added. "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 said. "So that may preclude Jackson's mother from challenging the will after all."

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