Who will inherit the world’s most powerful media empire? A battle over a multi-million dollar trust
The Murdoch family, owners of giant media conglomerates, is in the midst of a fierce legal battle for control of an empire built over decades. Patriarch Rupert Murdoch has unleashed a family storm by modifying an irrevocable trust that will determine the future of his legacy. What motivated this change? What are the consequences for his children and for the media world? Immerse yourself in this fascinating story that reminds us of the power of money and the complexity of family relationships.
Murdoch Family
The Murdoch Family has been in the spotlight for years, especially family patriarch Rupert Murdoch, who at 93 is a billionaire owner of a media conglomerate that includes Fox News and the Wall Street Journal.
This family has served as inspiration for many books and television programs, the most recent being an HBO series called Succession where the protagonist, Logan Roy, was inspired by Rupert Murdoch.
Legal Battle
The most recent controversy of the Murdoch family is due to the change of the Irrevocable Trust that Mr. Ruppert had established 25 years ago, which determined the assets that his heirs would receive.
The four eldest children of magnate Ruppert Murdoch are Prudence MacLeod, Lachlan Murdoch, James Murdoch, and Elisabeth Murdoch. The change in the family trust greatly favors Lachlan, whom magnate Rupert Murdoch intends to leave in effective control of his companies after his death.
The change of heart about the Rupert Murdoch Trust is due to the fact that he considers his son Lachlan to be the most suitable to take the reins of his companies because they share similar ideals and political beliefs.
However, Prudence, James, and Elisabeth feel that the change affects them and is unfair to them. For this reason, a trial began in September of this year to debate whether the change in the irrevocable trust is justified.
What is an irrevocable trust?
Is a type of trust that irrevocably transfers the assets of the grantor to its beneficiaries.
This type of trust is useful from a tax standpoint because from the moment the assets are placed in the trust, they cease to be part of the grantor’s estate, so the grantor does not have to pay income taxes on these assets. However, it is important that the grantor be very sure of what he is doing since there is no turning back once the papers are signed.
But then why the change in the irrevocable trust?
The trust was legalized in the state of Nevada in the United States and according to the state’s probate commissioner, the grantor can amend the trust if they can demonstrate that they are acting in good faith and for the benefit of the heirs.
This is basically what is being debated in the Murdoch family trust trial, on the one hand Ruppert Murdoch argues that the change is to benefit the family and on the other hand the children who feel affected argue that the change not only favors one family member more but is also contradicting the original spirit of the trust.
This family battle will continue to make headlines and we will be watching for developments in this multi-million dollar dispute.
If you want to know more about trusts or are interested in creating a trust to protect your family, write to us and we will be happy to advise you.
