“Oligarchs are oligarching”: Inside Rupert Murdoch’s family trust battle

Rupert Murdoch’s recent attempt to amend his family trust to consolidate voting power under his eldest son, Lachlan, was struck down by a Nevada probate commissioner. Murdoch sought to remove voting rights from his three less conservative children to ensure Fox News’ right-wing slant endured after his death. The effort, labeled by the court as a “carefully crafted charade,” has been described as a significant setback in the billionaire’s career. This legal battle offers a rare glimpse into the inner workings of one of the world’s wealthiest families, whose dynamics have drawn comparisons to the fictionalized drama in HBO’s Succession.

The trust at the center of this dispute was established in 1999 during Murdoch’s divorce from Anna Torv and provides equal financial holdings and voting rights to his four children. Murdoch’s provision allowing trust amendments was leveraged in his failed bid to secure Lachlan’s leadership, sparking concerns over its implications for irrevocable trusts and their associated tax benefits. Legal experts note that while irrevocable trusts are challenging to modify, they are often favored by the ultra-wealthy for their tax advantages and privacy protections. This public conflict underscores the complexities of estate planning among billionaires, highlighting the stakes when familial and corporate interests collide.

The case played out in Nevada, a state known for robust asset protection laws and the appeal of dynasty trusts, which can shield wealth across generations. The Murdoch trust’s Nevada base exemplifies the strategic legal choices made by wealthy families to minimize taxes and maximize privacy. The fallout from this case serves as a “cautionary tale” about the risks of publicizing family disputes in court, as it has drawn global attention to the Murdochs’ personal and professional conflicts. Murdoch and Lachlan plan to appeal, while the other children expressed hope for reconciliation and a renewed focus on family unity.

For more information see Cara Michelle Smith ““Oligarchs are oligarching”: Inside Rupert Murdoch’s family trust battle” The Salon, December 13, 2024.