The recent Murdoch succession saga offers a masterclass in the challenges of dynastic wealth, illustrating that even the most carefully structured family trusts can face unexpected hurdles. With Lachlan Murdoch consolidating control of Fox and News Corp while his siblings receive substantial payouts, the case underscores a lesson that ultra-high-net-worth families would do well to heed: succession is rarely straightforward.
Trusts, structures and the complexities of succession
‘The Murdoch dispute demonstrates that the control of the family business is not at corporate level but at trust level,’ explains Emma Jordan, a senior private client lawyer at Taylor Wessing. ‘This will be the case for the majority (if not all) of ultra-high-net-worth families which are now looking to the next generation. As such, succession will be determined not necessarily by who the patriarch thinks should take over the running of the business.’
Jordan highlights the complexity of these structures. When settlors design offshore trusts to hold family businesses, they often assume they can dictate exactly who will succeed them. In reality, the intricacies of modern trusts can create scenarios where even the founder’s intentions may not guarantee control.
Adding another layer of insight, Louise Lewis, partner and head of trusts, estates and tax at Freeths, points out that the Murdoch case also challenges the idea of ‘irrevocable’ trusts. She explains that while such trusts are meant to be fixed and unchangeable without the consent of all beneficiaries, attempts by Rupert and Lachlan Murdoch to restructure the family trust were viewed by the court as being in bad faith. Lewis highlights that the case underscores the importance of fiduciary duties, transparency, and proper process — even in family settings where interests overlap.
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Preparation, governance and lessons for the next generation
For Dawn Goodman, senior counsel and mediator at Withers, the Murdoch saga also shows the limits of trying to plan for every outcome. Carefully designed trusts often try to cater for all eventualities, but in practice that’s almost impossible. A more flexible approach, with trustees trusted to do their best for the family as a whole, is often wiser.
She stresses that the greatest risks arise when families don’t communicate. ‘Too often, founders impose their vision without really testing the views of the next generation. That’s when disputes, unhappiness and even litigation follow. Open discussion — ideally with a neutral such as a mediator or family adviser — can make all the difference.’
Beyond the legal side, the Murdoch saga is a story about preparation and planning. Passing on wealth isn’t just a matter of dividing assets — it’s about knowing how the structures work, spotting where conflicts could arise, and making sure the next generation is ready to handle them. It shows that the biggest challenges for family dynasties aren’t always about money: they’re about clear communication, thoughtful governance, and foresight.
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Sometimes the most effective solutions are also the most imaginative. As Goodman highlights, ‘I know of one family who worked out that it would suit one branch to care for the country estate for a couple of decades while the other branch pursued city careers, with the option to retire to the country later. Creative approaches like this can help avoid conflict while respecting different lifestyles within a dynasty.’
By engaging the right advisers early, families can safeguard not just wealth, but continuity, stability, and legacy — a lesson that the Murdochs’ experience brings into sharp focus.
