Jackson died June 25, deeply in debt. But a court filing estimates that 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.
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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.
"Frankly, Mrs. Jackson has concerns about handing over the keys to the kingdom," said John E. Schreiber, an attorney for Katherine Jackson.
Paul Gordon Hoffman, an attorney for Branca and McClain, said some of Katherine Jackson's concerns were unfounded.
"We're not aware of any real conflicts at all," he said in response to a claim that the men may have business dealings with parties such as concert promoter AEG Live.
In contrast, Hoffman said Jackson's mother had more of a potential conflict administering the estate because she is a likely beneficiary.
"If there are any conflicts by the parties, Katherine Jackson rather than Mr. McClain and Mr. Branca have them," Hoffman said.
A public memorial has been scheduled for Jackson in downtown Los Angeles on Tuesday. More than 1.6 million people registered to win the coveted free tickets, and only 8,750 names were chosen. Los Angeles officials are concerned about other fans clogging city streets. Meanwhile, a private ceremony is being planned for just prior to the public memorial in Hollywood Hills.
Downtown hotels were quickly filling Monday, and police warned those without tickets to the memorial to stay away.
Why the Jacksons sought a delay
The family was hoping for the delay so they could look deeper into Jackson's affairs, to see if another will might emerge, and to accommodate Jackson's memorial service on Tuesday, said a person close to the family who spoke on the condition of anonymity because the person was not authorized to speak publicly.
"It has been very insensitive, particularly to this family, that you would even schedule a court hearing on the status of the mother, the day before she has to go to the cemetery for her son," the Rev. Al Sharpton, a friend of the Jacksons, said on ABC's "Good Morning America" on Monday. "It's almost insulting."
Jackson's mother and those close to her want "time to further investigate the circumstances and individuals that were surrounding Michael Jackson during his final days," the person close to the family said.
"We don't have the answers," Sharpton told ABC. "But we do have the questions, and we know how to make those questions loud and clear. We owe it to Michael to get to the bottom of what happened."
While toxicology results from the autopsy are not expected to be available for weeks, the Los Angeles Times reports that at least five doctors who prescribed drugs to the singer are currently being investigated.
In court filings, Katherine Jackson's attorneys state it would be "premature" to contest the 2002 will, but they also note that several wills may have been filed. The 2002 will stated that Jackson wanted his three children entrusted to his mother, Katherine, who has been named a temporary guardian until July 13.
Attorneys for Branca and McClain said last week they do not expect any other wills to emerge.
Monday's hearing is crucial to the future of Jackson's financial empire, which includes an estimated $400 million in debt. A judge on Thursday delayed a hearing on who should have custody of Jackson's three children, making Monday's hearing entirely about the singer's fortune.
"This is going to be a very important hearing in the sense of giving the public an indication of where the case is heading and what the judge is thinking about," said Lawrence Heller, an estate planning attorney for the Santa Monica office of the firm Bryan Cave LLP.
Last week, Katherine Jackson was given authority over some of her son's possessions, including items taken from his Neverland Ranch that were slated for auction earlier this year, but not his finances. She had sought to control Jackson's finances and the estate of his children, but that was before Branca and McClain filed the will.
Experts say the Branca and McClain had an upper hand going into Monday's court hearing because they were designated by Jackson. In Branca's case, he helped organize one of the singer's smartest financial moves — acquiring a stake in the Sony-ATV Music Publishing Catalog, which includes music by the Beatles, Bob Dylan, Neil Diamond, Lady Gaga and the Jonas Brothers.
Branca also helped Jackson acquire the rights to his own master recordings, which include ample material for new music to be released posthumously.
Attorney Jeryll S. Cohen told Beckloff on Wednesday that the men also could minimize the loss of an estimated $85 million in ticket refunds required for Jackson's canceled London concerts. Randy Phillips, president and CEO of concert promoter AEG Live, said Thursday that the company has ample material for a possible movie, live album and other media that will likely allow them to break even on their Jackson investment.
More: Get the latest Michael Jackson features, photos and news updates
A temporary administrator would also have the power to take over numerous lawsuits pending against Jackson, including a $44 million federal claim filed by former publicist Raymone Bain, two lawsuits filed by "Thriller" director John Landis, and another one filed by "Thriller" co-star Ola Ray.
Temporary administrators would also control 2,000 items taken from Neverland Ranch that were slated for an auction halted by the singer this year. The items, which include awards, clothing and numerous other unique items taken from Jackson's former home, were expected to fetch at least $12 million.
