When it comes to wealth, power, and legacy, few families are as globally influential as the Murdochs. At the center of their empire lies a powerful financial instrument known as the Murdoch Family Trust (MFT), which controls the family’s interests in major media companies like Fox Corporation and News Corp. This Trust not only dictates how assets are managed, but also plays a critical role in determining who holds decision-making power both now and after Rupert Murdoch’s eventual passing.

Like many high-net-worth families, the Murdochs have used an Irrevocable Family Trust to manage their estate. These types of Trusts are popular because they offer substantial tax advantages, protect assets, and help streamline the distribution of wealth across generations. The MFT is incorporated in Nevada, a state known for favorable probate and trust laws, which adds another layer of protection and privacy.

Currently, the MFT is overseen by a Trustee called Cruden Financial Services, an entity named after the Murdoch family farm in Australia. Control of Cruden is distributed among a group of managing directors, each appointed by Rupert Murdoch and his four eldest children: Prudence, Elisabeth, Lachlan, and James.

Here’s where it gets interesting: Rupert has two managing directors, each holding two votes, giving him four out of eight total votes. Each of his children’s managing directors holds only one vote apiece. That means as long as Rupert is alive, he holds half of the total voting power, ensuring he cannot be overruled by his children or anyone else involved.

This balance of power only holds while Rupert is alive. When he passes away, his four votes vanish, leaving the remaining four votes equally divided among his children’s representatives, and no single person with a clear majority.

Anticipating this, Rupert and his son Lachlan made moves to shift the structure. Rupert proposed a change to the Trust that would create two additional trustees to operate alongside Cruden. One of these new Trustees would be fully under Rupert’s control, and the other under Lachlan’s. The goal? To give Lachlan a path to control the Trust after Rupert’s death.

Under this proposed structure, Lachlan would eventually control both of the new trustees, granting him majority power, even more than his father had. This would place Lachlan firmly at the helm of the Murdoch empire, a significant consolidation of power.

However, the succession plan recently hit a legal snag when a probate commissioner in Nevada rejected Rupert’s proposed changes, keeping the original structure of the Trust intact. That means that, for now, no one has a clear path to control the Trust once Rupert is gone, leaving the future of the Murdoch empire uncertain.

At The Estate Planning & Legacy Law Center, we’re here to help you protect what matters most. Whether you’re creating a Will, setting up a Trust, or planning for future generations, our experienced team is ready to guide you every step of the way! Contact us today to get started.