A legal fight over the family trust of media mogul Rupert Murdoch has resulted in a surprising loss for the billionaire, which could have significant implications for his family and his business empire. Murdoch, the owner of numerous television and newspaper companies, wanted to change the trust to favor one of his children over the others. However, he has lost the battle, showing the importance of proper and timely estate planning.
The Legal Battle Over Murdoch’s Trust
Rupert Murdoch, the 93-year old owner of numerous media companies including Fox News, the New York Post, Sky News, and the Wall Street Journal, recently sought to change his irrevocable family trust. The purpose was to change the terms of the trust to favor one of his children, Lachlan, while excluding Rupert’s other three children, who he believed would better preserve the companies’ editorial stance. The other three children, James, Elisabeth, and Prudence, opposed this outcome, and sued to prevent it from occurring.
A Surprising Outcome, Inspired By TV
In a surprising turn of events, a Nevada probate commissioner denied Murdoch’s efforts to change the trust, citing what he called a “bad faith” effort by Rupert and Lachlan to lock the other three children out of the trust. Apparently, the legal fight started after the three children saw an episode of the TV show “Succession,” in which a crisis begins among the cast after the death of a powerful media mogul within the show’s narrative. This led them to craft a plan to fight against a possible takeover, which turned out to be warranted after Rupert Murdoch tried to alter the terms of the family trust.
The Potential Implications of the Decision
Due to the failed legal effort, the Murdoch family trust will remain as it was before the legal battle started. This means that all four of Murdoch’s children will retain joint control over their father’s companies after he passes away. Aside from the potential implications for the companies themselves, it also means they will need to continue to work together to manage their family’s assets for the foreseeable future.
What You Can Learn
This sort of legal battle only occurred because of the ill-timed, bad faith effort by Murdoch to alter the terms of his own trust after it was already formed. While you cannot always prevent legal battles such as these from occurring over the terms of an estate plan, you can at least try to protect against most common problems that are likely to arise. This is why you should consult an experienced estate law attorney when you are crafting an estate plan, to make sure it accurately reflects your wishes from the beginning and avoid potential problems in the future.
If you or a loved one are dealing with legal issues related to estate planning, or you are dealing with any other issue related to elder law, you will need specialized legal advice. The attorneys at Hobson-Williams, P.C. are skilled in all aspects of elder law, and are dedicated to representing clients with diligence and compassion. To speak to an attorney or to schedule a consultation, call 866-825-1LAW.
