How the Murdoch Family Trust Works

It is currently governed by a single trustee — an entity known as Cruden Financial Services, named after the family’s farm in Australia.

Cruden is controlled by a group of managing directors appointed by various Murdoch family members. There are eight votes among them.

Each of Rupert’s four oldest heirs — Prudence, Elisabeth, Lachlan and James — has one managing director. Each of the children’s managing directors has one vote.

Rupert has two managing directors, each of whom has two votes. That gives Rupert four of the trustees’ eight votes — meaning that he can never be outvoted.

But when Murdoch dies, his four votes will disappear, leaving no single person with control.

Rupert and Lachlan set out to ensure that Lachlan would control the trust if Rupert dies.

Rupert proposed an amendment to the trust that would allow him to create two new trustees. They would share responsibility for managing the trust alongside the original trustee, Cruden.

The two new trustees would share power equally with the original Cruden.

Rupert would control one of the new trustees outright. Lachlan would control the other.

Combined, they would usurp the power of the original Cruden.

When Rupert dies, Lachlan would take control of both, giving him majority control of the trust — an even larger share than his father has now.

A probate commissioner in Nevada denied Rupert’s attempt to change the trust, leaving the original structure intact …

… and the succession plan unclear.