In a significant legal setback, media mogul Rupert Murdoch has lost his bid to wrest control of his media empire away from his three younger children. A Nevada court ruled againstMurdoch’s attempt to grant his eldest son, Lachlan, sole voting power over the family trust, which oversees companies like Fox News and News Corp. The court found Murdoch and Lachlan acted in“bad faith” by seeking to alter the trust’s structure, which currently grants equal voting power to his four oldest children. This decision, while subject to appeal, could significantly impact the future direction of the media empire
The legal battle stemmed from Murdoch’s desire to ensure Lachlan’s dominance within the company upon his death. However, his other adult children, James, Elisabeth, and Prudence, vehemently opposed this move, viewing it asan attempt to disenfranchise them. The court’s opinion harshly criticized Murdoch’s actions, describing them as a “carefully crafted charade” aimed at permanently solidifying Lachlan’s control. The legal proceedings involved high-profile attorneys, including former Attorney General William Barr, further underscoring the stakes involved in this family feud.
Trusts are legal arrangements where one party, the trustee, holds and manages property for the benefit of another, the beneficiary. Modifying a trust typically requires adherence to specific legal standards and procedures, which can vary by jurisdiction. In North Carolina, as in many jurisdictions, modifying a trust may require court approval, especially if the modification affects the beneficiaries’ interests or the trust’s fundamental purposes. The court will consider whether the modification aligns with the settlor’s original intent and the best interests of the beneficiaries. Trustees have a fiduciary duty to act in good faith and in accordance with the trust’s terms and purposes.
The attorneys at Lord & Lindley have significant experience dealing with trust and estate litigation. If you need assistance maintaining or defending a matter regarding a family trust, please give us a call at 704-457-1010 to find out how we may be able to help you. For more information regarding our firm, attorneys, and practice areas, please visit our website at www.lordlindley.com.