Murdochs' Dispute Highlights Benefits of Trusts in Nevada
As Murdoch family members clash over who will control voting shares in the Fox media empire, the court proceedings, in Nevada, are private.


The Murdoch family’s version of the HBO show Succession was recently on display in a Nevada courtroom. Rupert Murdoch, the 93-year-old patriarch of the family, identified his son Lachlan as the heir apparent of Fox Corp., home of conservative news network Fox News, and News Corp. Lachlan is currently the executive chair and CEO of Fox Corp. and chair of News Corp.
Lachlan is believed to share Rupert’s conservative political views, which would better protect the brand and value of Fox News. Note that James Murdoch, Rupert’s son and Lachlan’s brother, recently signed a public letter endorsing Vice President Kamala Harris for president. That certainly conflicts with the public positions of Fox.
However, part of Rupert’s estate plan includes an irrevocable trust that provides for the voting shares of Fox Corp. and News Corp to go in equal shares to his four oldest children: Prudence, James, Elisabeth and Lachlan. Rupert now seeks to give full voting control to only Lachlan.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Estate planning in Nevada
Nevada has long sought to establish itself as a premier trust destination and is perhaps best known in the estate planning world for its domestic asset protection trusts (DAPTs). A DAPT is a trust that is designed to protect the creator’s, or grantor’s, assets from his or her own creditors. This is also called a self-settled spendthrift trust.
Currently, only 17 states have laws that permit a DAPT. Nevada is one of those states. The others are Alaska, Delaware, Hawaii, Michigan, Mississippi, Missouri, New Hampshire, Ohio, Oklahoma, Rhode Island, South Dakota, Tennessee, Utah, Virginia, West Virginia and Wyoming.
To establish a Nevada trust or any other DAPT state, you do need to have sufficient contacts with that state. However, you need not actually be a resident of that state, and your assets or real property need not be located in that state. Typically, jurisdiction or required contact is definitively established by using a Nevada trustee.
There are a few Nevada trust companies that can fill that role at your direction. You can continue to be the investment trustee to retain direct control over your assets. Most Nevada trust companies prefer that, as there is less liability for the trust company because it is not directly managing the investments.
Typically, a Nevada LLC or another DAPT state LLC is used to hold assets that are in turn helped by the DAPT. Note that a Nevada LLC provides substantial protection, as collectors are typically limited to receiving amounts distributed from the LLC to the creditor and cannot pierce or seize assets held in the LLC.
Many practitioners rate Nevada as the strongest, or one of the strongest, jurisdictions providing the best asset protection. In making that determination, consideration is given to the following factors:
- Strength of the state statute
- The fact is that Nevada has no state income tax
- The statute of limitations for pre-existing creditors
- Nevada has no exceptions for child support claims
- Nevada has no exception for pre-existing tort creditors
- Nevada has no requirement for a solvent certification
- The need for clean and convincing evidence to establish a fraudulent transfer (a transfer to avoid a creditor)
- The ability to decant or modify the trust
- Nevada LLCs provide strong charging order protection
Nevada allows privacy in disputes
Perhaps the most overlooked characteristic is the ability for privacy within Nevada courtrooms. Parties and judges may hold hearings behind closed doors and even not publish the matter on the court’s public docket. With a private docket, how does anyone file to seek access? Perhaps due to the exceedingly high level of public interest in the Murdoch Family Trust, the Nevada court uncharacteristically disclosed a general docket information page, which was established under the name The Matter of the Doe Trust PR23-00813. The case itself remains sealed and not available for public review or scrutiny.
A media coalition sued for access by reporters — and even cameras in the courtroom — asserting that the public has a right to know. The request was denied, as the judge held that this was “essentially a private legal arrangement.” The denial is under appeal.
This ability to keep disputes like this private is a substantial advantage in Nevada over virtually all other jurisdictions. While this is certainly true for the Murdochs of the world — high-net-worth, high-profile families — we all would like to keep family discord or dirty laundry private. For instance, imagine how different the media coverage would have been had Johnny Depp and Amber Heard been allowed to keep private their highly emotional litigation.
Related Content
- Nine Lessons to Be Learned From the Hilton Family Trust Contest
- What We Can Learn from Tony Bennett's Estate Dispute
- Cut Your Wealth Transfer Taxes With a Family Limited Partnership
- Five Estate Planning Lessons We Can Learn From Elvis’ Mistakes
- Eight Types of Trusts for Owners of High-Net-Worth Estates
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Founder of The Goralka Law Firm, John M. Goralka assists business owners, real estate owners and successful families to achieve their enlightened dreams by better protecting their assets, minimizing income and estate tax and resolving messes and transitions to preserve, protect and enhance their legacy. John is one of few California attorneys certified as a Specialist by the State Bar of California Board of Legal Specialization in both Taxation and Estate Planning, Trust and Probate. You can read more of John's articles on the Kiplinger Advisor Collective.
-
The ‘First Year of Retirement’ Rule
The 'first year of retirement' rule says the 12 months after you leave work set the tone for your entire later life — so it's vital to approach them mindfully.
-
Tech Stocks Drag This Growth Fund Down
A rough stretch for mega-cap tech and tech-adjacent names has put pressure on this Mairs & Powers mutual fund.
-
The ‘First Year of Retirement’ Rule
The 'first year of retirement' rule says the 12 months after you leave work set the tone for your entire later life — so it's vital to approach them mindfully.
-
Tech Stocks Drag This Growth Fund Down
A rough stretch for mega-cap tech and tech-adjacent names has put pressure on this Mairs & Powers mutual fund.
-
Timing Is Everything for Roth Conversions: An Expert's Guide to the Right Strategy
Understanding the nuances of Roth conversions can help you avoid forking over more money in taxes than you need to.
-
Are You Ready for the Emotional Side of Retirement?
Financial adviser warns that life after work is coming, so start preparing … mentally, as well as financially. If you're nervous, take heart. Some simple strategies could ease the way.
-
Stock Market Today: Dow Dives 769 Points on Iran-Israel Conflict
Losses accelerated in afternoon trading amid reports Iran retaliated against Israel.
-
RV Living or Vacation Home? What's Best for Your Retirement?
You may fantasize about RV living or owning a cabin in the mountains or by the beach. Both options can be affordable and fun, but kick the tires first!
-
Four Ways to Help Prevent a Market Downturn From Scrambling Your Nest Egg
You may not be able to avoid a market decline when you're newly retired and starting to rely on your nest egg for income, but you can plan for that risk.
-
Is Your Home Disaster-Ready? An Insurance Expert's Guide to Preparing for Storms and Fires
Homeowners can take these steps to protect their properties from hurricanes, tornadoes, wildfires and hail, while also potentially reducing their insurance costs.