In a recent Nevada courtroom proceeding, the Murdoch family dynamic, reminiscent of HBO’s Succession, played out publicly.
Rupert Murdoch, at 93, officially named his son Lachlan as the successor to Fox Corp. and News Corp., which includes Fox News, a mainstay in conservative media. Lachlan, who currently serves as executive chair and CEO of Fox Corp. and as chair of News Corp., is seen as the more ideologically aligned successor to protect the brand’s legacy.
This contrasts with James Murdoch, Rupert’s other son, who recently endorsed Vice President Kamala Harris for president — a stance at odds with Fox’s conservative leanings. However, Rupert’s estate planning involves an irrevocable trust that allocates voting shares of Fox Corp. and News Corp. equally among his four oldest children: Prudence, James, Elisabeth, and Lachlan. Rupert now seeks to concentrate voting control with Lachlan alone.
Estate Planning in Nevada
Nevada has positioned itself as a top destination for trusts, especially for domestic asset protection trusts (DAPTs), which protect the grantor’s assets from personal creditors. Also called self-settled spendthrift trusts, DAPTs are only permissible in 17 states, including Alaska, Delaware, and South Dakota, with Nevada recognized as one of the most favorable.
Establishing a Nevada DAPT doesn’t require residency or in-state assets. Jurisdiction is typically achieved by employing a Nevada trustee, with several Nevada trust companies available for this role. A unique feature in Nevada is the option for the grantor to retain investment trustee status, maintaining direct asset control. Most Nevada trust companies prefer this arrangement to reduce direct investment management liabilities.
Assets held in a Nevada LLC within a DAPT gain substantial protection. Creditors are usually limited to receiving distributions made from the LLC and cannot directly seize or penetrate LLC-held assets.
Nevada is consistently rated highly for asset protection due to several key factors:
Robust state statutes Absence of state income tax Short statute of limitations for pre-existing creditors Exclusion of exceptions for child support or tort claims No solvent certification requirement High threshold for proving fraudulent transfers (requiring clear and convincing evidence) Flexible trust modification options Strong charging order protection in Nevada LLCs Privacy protections in courtroom proceedings
A standout feature of Nevada is the privacy in legal disputes. Hearings can occur privately, and dockets may remain sealed. In the Murdoch Family Trust case, although listed under “The Matter of the Doe Trust PR23-00813,” details remain sealed. Despite media attempts to gain access, asserting public interest, the court ruled this as a private legal arrangement. An appeal is underway.
This level of privacy appeals broadly, not just to high-net-worth families like the Murdochs, but also to individuals who wish to keep family disputes confidential. For example, the court-sealed privacy could have offered a different landscape for celebrity disputes like the widely publicized Johnny Depp and Amber Heard case.
