Michael Jackson’s Family in Financial Panic Amid Release of Court Filing Revealing Potential Payouts

Late legend Michael Jackson’s family is in a financial panic as a recent court filing revealed potential payouts for a pending sex abuse lawsuit and other concerns — on top of previously alleged tax debts to Uncle Sam — that could decimate the King of Pop’s estimated $788 million fortune and evaporate the hefty allowances of his heirs, sources say.

The details came to light after peeved Paris Jackson accused lawyers of siphoning dough from her father’s estate. She filed a petition in Los Angeles Superior Court demanding a full accounting of legal expenses after spotting alleged “irregular payments” made by John Branca and John McClain, executors of MJ’s estate, according to US Weekly.

“As painful as it is to say in print, the present records suggest that a group of closely knit, highly compensated lawyers is exploiting Executors’ lack of oversight to skim money from the Estate, in plain view,” her lawyer writes in a 16-page document. “Even worse, these payments appear, at least in part, to consist of lavish gratuities bestowed upon already well-compensated counsel.”

Paris also asked the judge to halt all legal payments until her petition is resolved.

However, the executors vehemently denied the charges and filed court papers stating the estate is fending off a series of lawsuits, including the long-standing claim by Wade Robson and James Safechuck, who charge MJ molested them as children while his employees turned a blind eye.

What’s more, the executors asked the judge in their motion to reject Paris’ petition to halt all legal payments because if certain expenses were not compensated the estate “would likely have to default” in Robson and Safechuck’s lawsuit, “where numerous depositions, discovery matters, and other matters are scheduled to take place over the next several months,” adding that the two accusers are seeking $400 million in damages, per US Weekly.

“This is a family crisis,” an insider explains. “The fear is when you have a $400 million potential payout, what’s going to be left for the heirs? And what a lot of people don’t know is that they are still trying to work things out with the IRS, which has been after them about Michael’s money since he died.”

Four years after the hitmaker suffered an accidental fatal overdose of the anesthetic propofol at age 50 in 2009, an IRS audit reportedly saddled his estate with a bill as high as $700 million for back taxes plus penalties. But the Grammy winner’s final tax tab is still being hashed out amid arguments over the value of his assets.

The insider says of the estate’s potential debts and possible legal verdicts, “You are looking at some serious problems financially.”

Also looming are other lawsuits — and supposed accuser Frank Cascio, 44, a longtime family friend who is allegedly seeking a $213 million settlement to stay silent about his accusation that he was molested by the “Bad” singer, New York Post reported.

The New Jersey man once called the pop icon his “second family” and never publicly voiced complaints while MJ was alive. But Cascio and unnamed associates are now being accused by Branca and McClain in a Los Angeles Superior Court petition of engaging in a “civil extortion scheme.”

During Michael’s lifetime, he denied abusing children — and was acquitted of molesting a 13-year-old boy in 2005 at a criminal trial in Santa Barbara, Calif.

Recently, Paris, 27, raised eyebrows by slamming the upcoming biopic Michael as fiction even as, sources say, the family is hoping it’ll earn a billion dollars at the box office to provide a massive windfall for the estate.

“Paris is not helping matters,” the insider says. “They are trying to generate income, and she’s bad-mouthing the movie, claiming the estate is misusing the money and basically causing another financial headache that could cripple the family.”