I just read a long story about the battle that the Murdochs fought last year in a court in Reno. It was like a real-life "Succession" with all the elements -- feuding children from three different mothers, the patriarch favoring one of them, going to court to change the terms of the trust to give him a controling interest, and on and on. The one question that the story didn't answer for me was why Reno? Why was this case, with an Australian-born Oxford-educated American businessman, tried in Reno? Do the Murdochs have any business interest there?
Good question. And the answer tells us a lot about the trust-friendly environment that Nevada offers.
As far as we know, the Murdochs have little to no personal or business ties to Nevada. Instead, the state's trust and privacy policies were the key factors in the case being heard in northern Nevada.
In the first place, when it comes to trust and probate proceedings, Nevada law prioritizes privacy and confidentiality, especially in a sensitive case like this, with very high stakes and unrelenting media attention. No media was allowed in the courtroom and the records are sealed from public view; these aren't unique to Nevada, but many other jurisdictions don't provide such protections.
As for the public's knowledge of the ruling in the case, we'll get to that in a moment.
Second, Nevada's trust-friendly policies allow for changes to irrrevocable trusts "under certain conditions," such as trust settlor's (meaning the creator of the trust) seeking court approval for such changes.
Third, the state’s laws also feature minimal income and inheritance taxes, making it a popular choice for high-net-worth family trusts. Indeed, Rupert Murdoch moved the trust to Nevada especially to leverage that advantage, along with the others. So with the trust administered in Nevada, it made sense for a Nevada court to hear the case.
As for Reno, our understanding is that the Washoe County court system is less backlogged than those in, say, New York and California or even Las Vegas. So the case could be handled more expediently. Also, again thanks to the state laws, Nevada probate officials are highly experienced in these types of cases. So are the lawyers. We have a little inside information that one of the probate attorneys involved in the case practices in Reno.
Finally, with all the privacy and confidentiality policies of these court cases, how do we know the outcome? The New York Times reported on the judge's ruling the very same day of his decision (citing the nearly 100-page ruling, which described Rupert Murdoch’s actions as being in “bad faith” and a “carefully crafted charade” to cement one of his son's control of the trust). Somehow -- presumably a leak from deep inside -- the Times gained access to the document.
Additionally, public statements from the other three Murdoch progeny involved welcoming the decision, also reported by the Times, further confirmed the outcome. The sealed nature of the case limited direct access, but indirect media leaks and family statements revealed the result.
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TheHeater
Jun-24-2025
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