Over the next two decades, reports are estimating that baby boomers will pass down a combined $84.4 trillion in assets to younger generations. Dubbed the “Great Wealth Transfer,” this phenomenon is already underway and will impact millions of families. How the families will be impacted, what they decide to invest, and how the transfer affects family dynamics is yet to be revealed.
And speaking of generational-wealth transfers, perhaps you caught wind of the Murdoch family's courtroom drama that's unfolding like a prime-time soap opera in Nevada. At the heart of the saga, we have the family patriarch, Rupert Murdoch, refusing to go gently into the night. The nonagenarian petitioned to revoke the provisions of the family's irrevocable trust, aiming to pass the scepter of the Murdoch empire—featuring the crown jewel, Fox News—directly to his favorite knight, eldest son Lachlan. In doing so, he is claiming that such a change will be in the interest of all the trust beneficiaries—including three of his other children, James, Elisabeth, and Prudence.
Rupert’s big pitch? He claims that by crowning Lachlan as king, he’ll secure the empire's conservative soul and dodge endless squabbles over who gets to sit on the throne next, thus preserving the realm's riches for all his progeny.
But Rupert’s maneuver hasn't exactly been met with group hugs and high fives from his other heirs. Indeed, his three other offspring, who were supposed to split the kingdom equally with Lachlan, are crying foul over Dad’s playbook. Indeed, they hired Cravath to help them oppose Rupert’s efforts, so they are not messing around.
Take our quiz, test your knowledge, and give us your thoughts on the squabble. Attend our CLE on November 14, 2024, compare notes with other attendees, and find out who shares your thoughts on the matter and whose predictions prevailed.
1. Choose Your Side! Which Murdoch would you represent or advise if you were thrown into this saga?
A. Rupert and Lachlan Murdoch - The patriarch juggling the family and the empire and his chosen successor.
B. James Murdoch - The wildcard with differing views from his father.
C. Elisabeth Murdoch - The entrepreneur who might just outsmart them all.
D. The Professional Trustee – The party stuck in the middle.
2. Plot Twist Anticipation: What’s your bet on the most likely plot twist?
A. An unexpected reconciliation amidst the legal battle.
B. A dramatic courtroom revelation that changes the course of the lawsuit.
C. Rupert dies, mooting the pending trust question—but likely leading to other litigation.
D. A shift in alliances by an heir seeking to act as peacemaker.
3. Future of the Empire: How do you see the empire evolving post-dispute?
A. A smoothly running Murdoch empire post-litigation, stronger than ever.
B. A fracturing of the empire, leading to spin-offs and sell-offs.
C. A transition to non-family management.
D. No significant change; the empire marches on with its usual level of drama and controversy.
4. Who’s Coming Out on Top? Who will come out on top in the Murdoch power struggle?
A. Rupert Murdoch and Lachlan.
B. James and his sisters.
C. Elisabeth steps in as a compromise leader.
D. No one—whoever “wins” ends up destroying the empire and no one is happy.
5. The Judge’s Gavel: If you were the judge, how would you resolve the dispute?
A. Rule in favor of Rupert and Lachlin—the trust can be changed to give Lachlan control.
B. Rule against Rupert and Lachlan—the trust stays as is.
C. Delay until Rupert dies, mooting the question before you.
D. You’ll follow the law (wherever you determine that to lead), but you will take the opportunity to tell the entire family what you think about the “legacy” they are leaving.
6. Choose Your Own Adventure: What role would you want to play in this high-profile saga?
A. Lead counsel or advisor for one of the parties.
B. The judge presiding over the case.
C. The trustee of the Murdoch family trust.
D. Journalist reporting on this.
Your results! Which one are you?
Mostly As: You are a fighter. You are not afraid of taking on an uphill battle—even if your clients appear greedy and unsympathetic.
Mostly Bs: You are an infracaninophile—someone who supports the apparent underdog. Of course, underdogs are all relative when you are fighting over billions of dollars.
Mostly Cs: You are a pragmatist. You try to find ways to resolve a matter that might not leave either side very happy, but it might be for the common good.
Mostly Ds: You are a peacemaker who has tried to stay neutral but are disgusted by the whole saga.
