A genius of a songwriter and performer, Jackson was not so in tune with his personal finances. At one point the star owed more than $270 million to Bank of America (BAC). In 2005 the bank sold that debt at a discount to the private equity firm Fortress Investment Group (FIG). Jackson, who reportedly spent as much as $30 million a year during the good times on clothes, travel, and toys for his ranch, successfully fought an attempt to auction many of his personal possessions earlier this year. Over the years those suing Jackson for past-due bills included his former publicist, video director, attorney, and financial advisers.
Not much is known about Jackson's estate planning or will. He leaves behind three children and his well-known brothers, sisters, mother, and father. The star had one asset that will likely be the target of much maneuvering by creditors and heirs in the coming months and years—his 50% interest in the Sony/ATV music catalog. Shortly after his string of early 1980s hits that included Thriller, one of the best-selling albums of all time, Jackson was shrewdly advised to buy the Beatles catalog for $47 million. Ten years later, Jackson merged his music company with Sony Corp.'s (SNE) music publishing arm in a deal reportedly worth $90 million to him.
Today, that company owns the publishing rights to thousands of hit songs by everyone from Neil Diamond to Lady Gaga. Music publishers collect royalties from radio stations, movie studios, and record labels every time a song is played or album sold. Jackson's half interest has been estimated to be worth as much as $500 million. Jackson's own hits are owned by a separate company, also now part of his estate. But like his life, Jackson's estate is unlikely to be settled without controversy.