Rupert Murdoch is now awaiting a verdict in the battle with his kids over who will inherit his massive media empire – here’s how to avoid a spicy Succession saga of your own

Rupert’s changing plans

Rupert Murdoch built an empire spanning multiple continents, with a net worth of $10.6 billion, according to the Bloomberg Billionaire Index. While his dealmaking prowess is considered legendary, his estate planning has left room for conflict and confusion.

In 2023, Murdoch stepped down as chair of Fox and News Corp., publicly backing his son Lachlan, emphasizing that they share the same values and vision.

“My father firmly believed in freedom, and Lachlan is absolutely committed to the cause,” Rupert wrote in a letter to his employees.

However, his decision to modify the family trust has sparked the legal battle with his other heirs, who feel disenfranchised.

A survey conducted at the 53rd Annual Heckerling Institute on Estate Planning revealed that nearly half (46%) of professionals, including attorneys and trust officers, cited family conflict as the most significant threat to estate planning. Without proper planning, 58% of families experience disputes or face court control over assets, according to LegalShield.

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Know the role of probate

The Murdoch family’s ongoing legal battle shows how probate can complicate estate transitions.

According to Empathy, the probate process – used to validate and manage a deceased person’s estate – is often the most costly and difficult financial matter tied to death. Fees typically range from 3% to 7% of the estate’s total value, meaning a $750,000 estimate could incur costs between $22,500 and $52,500.

And, according to the American Bar Associations, probate can delay asset distribution for six to nine months, causing both financial strain and emotional stress on the families involved.

You can avoid some of these hurdles by establishing a living trust, which allows you to control and manage your assets during your lifetime while ensuring a smooth transfer after your death. A living trust lets you tweak things as your circumstances change, giving you peace of mind and more control over what happens to your assets.

Leave it in the will

During Rupert’s Murdoch’s 1999 divorce from his ex-wife Anna, the couple set up an irrevocable trust to secure long-term financial stability for their four children.

However, the ongoing legal battle shows even irrevocable trusts can lead to disputes. While a trust can offer protection and keep assets out of probate, its terms are generally more rigid. A will, on the other hand, allows for more flexibility since it can be updated to reflect life changes, such as divorces or shifts in family dynamics, like those currently dividing the Murdochs.

Patrick Hicks, general counsel of Trust & Will says, “Wills and estate planning are essential for everyone, not just the wealthy. Every person over the age of 18 should have an estate plan, no matter their financial situation,”

To ensure your estate plans align with your needs, it’s always wise to consult a financial professional who can guide you through the complexities of wills, trusts and probate. They can help you get everything in order and avoid potential family conflicts.