A Nevada probate court is set to begin privately reviewing evidence in a case that could determine who will control Rupert Murdoch's media empire after his death.
Murdoch, 93, appeared in court on Monday for a hearing after he tried last year to change the terms of an irrevocable family trust to allow his eldest son, Lachlan, to retain control of newspapers and television stations, including The Wall Street Journal and Fox News Channel, The New York Times reported, citing unreleased court documents.
Evidentiary hearings in the case are scheduled to continue until next Tuesday. The court has kept the hearings closed to the public, sealed most documents and largely denied access requests from media organizations, including The Associated Press.
According to The New York Times, the trust was originally set up to give Rupert Murdoch's four eldest children equal control over his businesses after his death.
Murdoch stepped down as head of Fox News' parent company and News Corp's media division last fall. The New York Times reported that he has argued he needs to make changes to the trusts to ensure the commercial value of the businesses remains with any successors and that Lachlan needs to ensure his newspapers and television stations continue to maintain their conservative editorial lines.
Lachlan succeeded his father as chairman of News Corp in November and also sits on the board of Fox Corp, which owns conservative news network Fox News, Fox Broadcasting and Sports Network and local television stations. The media empire spans continents and helped shape modern American politics.
According to The New York Times, Rupert Murdoch's attempts to change the trust have put him at odds with his three other children who are named as beneficiaries – James, Elizabeth and Prudence – who have banded together to stop their father from changing the trust.
Irrevocable trusts are typically used for purposes such as limiting inheritance taxes and cannot be altered without the beneficiaries' permission or a court order.
According to the newspaper, Probate Commissioner Edmund J. Gorman of Nevada's Second Judicial District Court in Reno ruled this summer that Rupert Murdoch can amend the trust if he can prove that he was acting in good faith and solely on the behalf of his heirs.
The court ruled that the lack of consensus was the reason Murdoch sought to give Lachlan permanent and exclusive control of the company. Among his children This could affect the strategic direction of his company, including potentially leading to changes in editorial policy and content.
