Murdoch Family Trust Fight Unsealed

Media Industry

Rupert Murdoch tried to stop his more modern children from shaping his media empire future. (Reuters: Fred Greaves)

In short:

Court papers show Rupert Murdoch's 2024 fight to change his "irrevocable" family trust.

Australia Post chair Siobhan McKenna, then close to Lachlan Murdoch, pushed the trust change, court says.

These papers were mentioned before, but this is the first public release.

In 2024, at a plain Reno courthouse, Murdoch family members met to argue.

Rupert wanted to move his trust control to his oldest son Lachlan, not split it among all children.

The court said no after months of review.

The Nevada court never shared its detailed reasons for rejecting Rupert and Lachlan – until now.

Commissioner Edmund Gorman called the trust change a "carefully crafted charade" and said Rupert and Lachlan acted in "bad faith" toward James, Elisabeth and Prudence.

Rupert and Lachlan tried to take control away from Prudence MacLeod nee Murdoch, James Murdoch and Elisabeth Murdoch. (AP/Reuters)

The paper was new, but The New York Times and others had already cited its findings.

It shows how the court fight unfolded and how Australian media boss Siobhan McKenna, Lachlan's close adviser, helped plan the trust change.

In 2025 the family agreed that Lachlan would keep control after Rupert died, while the three older siblings each got over $1 billion for their shares.

The judgment shows the deep family rift, ending years of public fights and a bitter court battle.

Rupert Murdoch and his then‑wife Anna Murdoch with Lachlan, James and Elisabeth at their New York home in the 1980s. (Peter Carrette Archive/Getty Images)

The 'irrevocable' trust at the centre of the case

The original Murdoch trust was set up in 1970 to avoid high Australian death taxes, court says.

The succession plan was solidified in 1999 after Rupert divorced his second wife Anna Torv.

Then the Murdoch Family Trust was created – an "irrevocable" deal that said the business would be split equally among Rupert and his children at the time.

Rupert married four times and has six children; here is a look at the Murdoch family tree.

It meant that after Rupert died, Fox Corp and News Corp would be shared equally among his four oldest kids.

The trust allowed Rupert to change the children’s sub‑trusts if it was in their best interest, which was the basis of Rupert and Lachlan’s court arguments.

Rupert and Lachlan made a plan called Project Family Harmony, which the commissioner called "perhaps too optimistic".

The plan would let Lachlan keep control of the company.

Siobhan McKenna was Lachlan Murdoch's trusted aide. (Supplied: Menzies Foundation)

New court findings show Siobhan McKenna was central to Project Family Harmony as Lachlan's trusted aide.

Commissioner Gorman wrote the project started with Siobhan McKenna and Lachlan Murdoch in mid‑2023, with Rupert joining later that year.

At that time, Ms McKenna was in her first year as Australia Post chair, appointed by the Albanese government in late 2022.

"Evidence shows Lachlan Murdoch's MD, Siobhan McKenna … drove Project Family Harmony until the special meeting in December 2023," he wrote.

"Siobhan McKenna set up meetings, wrote agendas, dealt with lawyers … and prepared talking points for Rupert to use with his four daughters."

The judgment says she also screened candidates for key jobs, using Fox security staff for background checks.

One disqualifying factor was "any link to another Murdoch person".

Ms McKenna also went with Rupert to meet his ex‑wife Wendi Deng and later sent her a draft settlement to change sub‑trusts for Chloe and Grace Murdoch.

Ms McKenna cut ties with Lachlan and the global media empire last year.

Rupert wanted to give the media empire to Lachlan instead of James. (Supplied: News Corp)

A 'carefully crafted charade'

To get court approval to rewrite the trust, Rupert had to prove he acted in "good faith" for all heirs.

But the probate commissioner said Rupert and Lachlan acted in "bad faith".

Commissioner Gorman called the plan a "carefully crafted charade" meant to protect Lachlan's power, regardless of its effect on the beneficiaries' companies.

He wrote that Rupert and Lachlan's managers were motivated mainly by wanting to follow Rupert and Lachlan's wishes and avoid a "math problem" where the other children's managers could outvote Lachlan after Rupert's death and change company editorial lines.

An episode of Succession sparked secret talks among Rupert's children about his death. (Supplied: HBO/Macall B Polay)

The court showed that the TV death of Succession's Logan Roy in April 2023 started discussions among some Murdoch children about a PR plan for their father's death.

"The episode of HBO's Succession where the family patriarch dies, leaving chaos, started these talks," the commissioner wrote.

While Gorman confirmed the children met to discuss funeral plans and Fox/News management, there was "grossly insufficient" proof that Elisabeth or Prudence joined any plan with James after Rupert's death.

The decision also shows James, Elisabeth and Prudence said they did not plan to remove their brother and had no shared purpose to change Fox News management.

"The effort tried to stack the deck for Lachlan after Rupert's passing so the succession could not be changed," the commissioner wrote.

The court said Rupert and Lachlan acted in "bad faith". (GC Images: Adrian Edwards)

How Rupert Murdoch grew deeply suspicious of his son James

James was once the main heir and rose quickly in the family business, but left the empire in 2020.

He quit News Corp's board after criticizing its papers for denying climate change's role in Australian bushfires that year.

James, Elisabeth and Prudence are seen as less conservative than Lachlan; James especially criticized the outlets, including Fox News's 2020 election conspiracy coverage after Trump lost to Biden.

Company executives thought James was briefing journalists about the family, the court paper said. (Reuters: Fred Greaves)

The ruling shows Project Family Harmony meetings discussed risk scenarios for Rupert's legacy, including what would happen if a "troublesome beneficiary" gained control after Rupert.

Commissioner Gorman found clear evidence that references to a "difficult" or "troublesome" beneficiary meant James Murdoch.

James's worsening relationship with his older brother and father is well known, but Gorman says Rupert's suspicion of James was a key reason the plan got approval.

"Rupert was added to the plan under the false belief that James was 'making trouble' by fueling press speculation about the trust after Rupert's death," he wrote.

The family later made a deal guaranteeing Lachlan will keep control of the empire. (Reuters: Mike Blake)

But Gorman said Rupert's ideas about James leaking to the press were "unsubstantiated".

One example: the commissioner said Lachlan and others thought James, or someone for him, leaked trust details to Financial Times reporter Alex Barker.

Gorman wrote: "At trial, Lachlan admitted he had no proof James or his allies briefed Alex Barker."

A similar suspicion arose around The Successor, an unauthorized Lachlan biography by Australian journalist Paddy Manning, now at ABC.

Lachlan Murdoch pictured in 2022. (Supplied: Lionel Hanh Picture Group for Fox Sports)

But Reno evidence pointed elsewhere. Gorman found that for Manning's book, Lachlan's adviser Ms McKenna gave over 14 hours of interviews and follow‑up messages.

"The evidence shows Lachlan falsely told his father, without proof, that James or his allies were sources for The Successor," the commissioner wrote.

"He did not tell his father that Siobhan McKenna was involved, with his permission."

Gorman also described Rupert's worry that his younger son would strongly oppose Project Family Harmony.

"They thought James would be very hostile and would do everything to block it," he wrote.

Murdoch family granted private trial

The bitter feud, lasting decades, has drawn global headlines with a massive media empire at stake.

The ruling confirmed the family sought counselling in 2010, with everyone except Prudence present, to "unpack some family tensions or problems".

Elisabeth called the process "painful", while Lachlan said the siblings aired "petty grievances" against Rupert before "they all ended up hating each other".

The 2024 court case closed one chapter of the family's story.

While the court denied Rupert's trust change, the family later made a deal ensuring Lachlan keeps control after the elderly patriarch's death.

The deal protects Rupert Murdoch's legacy as founder of the world's most powerful conservative media empire.

The September 2024 trial was closed‑door, despite a petition from Our Nevada Judges to broadcast it.

Six news groups – AP, CNN, NPR, The New York Times, Reuters and The Washington Post – also asked to unseal the case and papers.

The petitions were denied before the trial, with the judge saying the case is "essentially a private legal arrangement".

The 96‑page commissioner report was unsealed yesterday after Our Nevada Judges won an appeal this week.

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