Michael Jackson’s Life Insurance Only Small Portion Of Post-Death Income

In June of 2009 Michael Jackson was preparing for a comeback tour under a massive pile of debt. His home was about to be foreclosed on, and even utility bills weren’t being paid. But then on June 25, 2009 Michael Jackson passed away, a drug-related homicide according to authorities.

While the world will never know what kind of money Jackson could have made through his latest tour, in death he has brought in millions. According to CNBC Jackson’s estate has brought in nearly $275 million in the past year. That money has come from sales of everything from ring tones to merchandise. Debts have dropped to $400 million, down from $500 million before Jackson’s death. And the home that once faced foreclosure has been paid for in full.

Jackson’s life insurance policy wasn’t enough to pay the estate taxes, much of which still has to be paid according to reports. Two men– John Branca and John McClain– have been responsible for making sure Jackson’s wishes are met, his charities receive funds  and his children are cared for. Both Branca and McClain knew Jackson for years and say Jackson was focused on getting his financial life in order just before his sudden death. “We had seen Michael the week before,” Branca told CNBC. When Jackson died, Branca added, “It caught us by surprise,” but as CNBC reported, they were able to move forward with managing the estate because, “We had a game plan.” That plan, according to CNBC included four main goals:

1. Generate a lot of short term cash to pay bills.

2. Establish long-term projects that would generate regular cash flow.

3. Restructure debts.

4. Help Jackson improve his image.

So where is Jackson’s money coming from in the 12 months since his death? Only a small portion came from life insurance. The biggest segment was $125 from Sony in a 10-album deal that will take place over the next seven years. Another big chunk, $60 million according to CNBC, also came from Sony for the rights to “This Is It,” the film that grossed $300 million in the box office. Other funds have come from Mijac Music Publishing which owns the rights to Jackson’s songs, merchandise sales and book revenues. There are more projects in the works, but experts say this year may have been the estate’s most lucrative.