The ongoing battle between Rupert Murdoch and his children over control of their family’s multibillion-dollar media empire is a complex one. It raises a fascinating question; can you change a legal document that’s supposed to be unchangeable?
Here’s the key idea: Rupert Murdoch is trying to change something called an “irrevocable trust.” This type of trust is supposed to be set in stone. But why would someone like Murdoch want to make changes to something that can’t be changed, and can he even do that?
What Is a Trust?
A trust is a legal arrangement where one person (the "trustor") gives property or assets to someone else (the "trustee") to hold and manage for the benefit of others (the "beneficiaries"). In Murdoch’s case, the trust holds control over his businesses, like Fox News and The Wall Street Journal.
There are two main types of trusts:
1. Revocable Trusts: These can be changed at any time by the person who created them.
2. Irrevocable Trusts: Once these are set up, they generally cannot be changed or canceled.
Murdoch’s trust is an Irrevocable Trust that was created back in 1999 after he divorced his second wife, Anna Murdoch Mann. It was designed to ensure that his children would inherit part of the family empire. The trust gives each of his four oldest children equal voting rights over the family’s businesses.
Why Does Rupert Murdoch Want to Change His Trust?
At 93 years old, Rupert Murdoch wants to ensure his eldest son, Lachlan, takes control of the family businesses after his death. However, the current trust would give each of his four oldest children—Lachlan, James, Elisabeth, and Prudence—equal power in making decisions about the family companies.
Murdoch is concerned that his son James, who doesn’t agree with Lachlan on business and political matters, might team up with the other siblings and block Lachlan from running things. To avoid this, Rupert is asking to change his Irrevocable Trust so that Lachlan would have more control.
Can an Irrevocable Trust Be Changed?
The whole point of an irrevocable trust is that it’s not supposed to be changed. But there are certain situations where it can be amended:
1. Agreement by All Beneficiaries: In California, the Probate Code now allows for modifications to an irrevocable trust if the Grantor of the trust and everyone who benefits from the trust agrees in writing. In this case, not all of Rupert’s children agree, so this option doesn’t work.
2. Court Order: Sometimes, a court can allow changes if it’s proven that the amendment is in the best interests of the beneficiaries or if there was a mistake when the trust was created. This is what Rupert Murdoch is trying to do—he’s asking a probate court in Nevada to approve the changes.
3. State Laws: Different states have different rules about how and when irrevocable trusts can be changed. In Nevada, where the Murdoch trust is based, courts can sometimes allow changes if circumstances have changed dramatically since the trust was created.
4. Trust Protectors: A Trust Protector is an independent person or entity designated in the trust who can be given limited powers to amend a trust. In some circumstances this can provide an avenue for reacting to later unforeseen circumstances that arise in an irrevocable trust.
What Are the Chances That a Nevada Court Will Allow Rupert Murdoch to Change His Irrevocable Trust?
The chances that a Nevada court will allow Rupert Murdoch to change his irrevocable trust depend on several factors. Nevada courts are known for being more flexible when it comes to trust law, especially compared to other states. They may allow changes if there’s a compelling reason, such as protecting the interests of the beneficiaries or ensuring the long-term stability of the assets. However, courts typically require strong evidence that changing the trust is in the best interests of all involved parties. Since not all of Murdoch’s children agree with the proposed changes, the court will likely consider whether giving Lachlan more control aligns with the original intent of the trust and benefits the other beneficiaries. The fact that this involves a multibillion-dollar empire adds complexity, but given Nevada's more lenient trust laws, Murdoch's legal team will likely make a strong case for the changes. Still, it will be up to the court to decide whether the amendment is justified under state law.
Why This Matters
If Rupert Murdoch succeeds in changing his trust, Lachlan will have the same power his father has today, making all the big decisions about their companies. If he doesn’t succeed, his children might get stuck in a deadlock, unable to agree on the future of their family empire.
The Murdoch family drama shows how even the wealthiest and most powerful families can face difficult and emotional decisions about inheritance and control. Changing an irrevocable trust isn’t easy, but sometimes, people are willing to go to court to try.
While irrevocable trusts are designed to be permanent, there are legal pathways—though difficult ones—to making changes. The outcome of this case could affect not only the future of the Murdoch family businesses but also how courts handle similar cases in the future.
In general, though, unless there’s a very good reason, you should assume that an irrevocable trust will remain exactly as it was written when it was created.
By understanding these legal battles, we can see how even complex laws apply to real-life family conflicts over wealth and power. The Murdoch family’s legal case might sound like something out of a TV drama, but it shows how law and family dynamics come together in interesting—and sometimes challenging—ways.
If you, a friend, or family member need help establishing or updating an estate plan or with trust administration, please reach out to our Intake Department at 760-448-2220 or at https://www.geigerlawoffice.com/contact.cfm. We have offices in San Diego County (Carlsbad) and Orange County (Laguna Niguel), but we assist can families throughout California as well.
