Family Trusts in Kenya: Key Lessons from the Murdoch Succession Battle

The intense family trust dispute involving media mogul Rupert Murdoch, as detailed in the New York Times article “Rupert Murdoch’s Last Succession Fight” published on February 13, 2025, provides a fascinating look at the complexities of family trusts.

As the Murdoch case played out in Nevada, its lessons echoed worldwide. This includes Kenya, where family trusts are more common for managing wealth, securing legacies, and handling succession. The Murdoch saga shows seven key insights for setting up and managing family trusts in Kenya.

1: Clarity in Trust Terms is Paramount

The Murdoch family trust, established in 1999 post-divorce from Anna Murdoch, aimed to equitably distribute News Corp and Fox Corporation control among Rupert’s four oldest children—Prudence, Elisabeth, Lachlan, and James—upon his death.

However, Rupert’s 2023 attempt to amend the irrevocable trust to favour Lachlan sparked a bitter legal battle. On December 9, 2024, the Nevada court rejected this change. This showed that irrevocable trusts are fixed unless changes are made in good faith for the benefit of all beneficiaries. This principle is also in Kenyan trust law under the Trustees Act (Cap 167).

When drafting a family trust in Kenya, clarity and specificity in the trust deed are non-negotiable. Ambiguities, like those exploited in the Murdoch case, can lead to disputes. Define beneficiaries, voting rights, and succession plans explicitly to avoid courtroom showdowns.

2: Irrevocable Trusts Are Hard to Change

Rupert Murdoch’s family trust was designed as irrevocable, meaning its terms were intended to be permanent. Nevada Commissioner Edmund J. Gorman Jr. described Murdoch’s move to hand control to Lachlan as a “carefully crafted charade.” He ruled that Rupert and Lachlan acted in bad faith. This rigidity reflects Kenya’s legal system. Once set up, irrevocable trusts cannot change unless all beneficiaries agree or a court steps in under special circumstances.

For Kenyan families, this highlights the permanence of irrevocable trusts. If you create a trust to shield assets from estate taxes or creditors, consider that future changes, like changing control, may not be legally allowed. Opting for a revocable trust might offer flexibility but sacrifices some protective benefits.

3: Family Dynamics Can Undermine Trust Goals

The Murdoch saga reveals serious family divides. Lachlan’s conservative views matched Rupert’s but conflicted with James’s moderate approach. Meanwhile, Elisabeth and Prudence felt left out. The tensions had been building for decades. They erupted when Rupert tried to change the trust, which made relationships even worse.

In Kenya, family businesses often last for generations. This makes these dynamics important to think about when setting up a trust. Succession planning in Kenya must account for family harmony. A trust intended to preserve a legacy—like a farm in Nakuru or a company in Nairobi—can falter if siblings or heirs harbour conflicting visions. Talking openly and using mediation before finalising a trust can help prevent disputes. This way, the trust meets its goals instead of fuelling division.

4: Voting Rights Shape Control

The Murdoch trust had eight votes: Rupert held four, and his four oldest children had one each. After his death, control changed, making it equal among the siblings.

Rupert’s failed amendment tried to strengthen Lachlan’s power. It planned to create new trustees under his and Lachlan’s control. This battle over voting rights underscores their pivotal role in trust governance.

In Kenyan family trusts, how voting rights are shared decides who leads. Whether managing a family business or property portfolio, decide early whether the control should be centralised (e.g., with one trustee) or shared equally. Missteps here, as seen with Murdoch, can destabilise even the most robust succession plans.

5: Trustees’ Duties Are Legally Binding

Kenyan trustees must act diligently, impartially, and in the beneficiaries’ best interests. They are liable for any breaches. Murdoch’s trustees faced scrutiny for aligning with Rupert and Lachlan, a move the court rejected.

You should choose your trustees carefully. This can be family members, professionals, or a mix of both. Make sure they know their legal duties. A trustee’s bias or negligence can unravel your trust, as nearly occurred with Murdoch. Robust oversight prevents such missteps.

6: Trusts Reflect Ideology, Not Just Wealth

Rupert’s push to lock in Fox News’s conservative slant via Lachlan revealed that his trust was as much about ideology as assets. His testimony stressed keeping a “faintly conservative voice” instead of focusing on profit. The court saw this motive as self-serving and rejected it.

In Kenya, your family trust can embody values beyond money. Clearly state these goals, whether you’re preserving a family’s farming traditions or backing community projects. Make sure all heirs benefit, not just a select few. This can help prevent legal issues like those faced by Murdoch.

7: Family Trust Duration—Murdoch’s Finite Choice vs. Kenya’s Indefinite Potential

Rupert Murdoch’s family trust, established in 1999 in Nevada, is set to expire in 2030. It is very different from Kenya’s legal system. In Kenya, family trusts don’t have time limits. They can last forever unless the settlor picks a specific duration. Murdoch’s 2030 expiration is not a legal requirement. Nevada allows trusts to last for 365 years. This implies it’s Murdoch’s choice. It could be linked to his 1999 divorce settlement or his wish to complete succession during that time.

In Kenya, a family trust could persist without end, preserving wealth—such as a business in Nairobi or land in Eldoret—for countless generations, offering settlors unparalleled flexibility to empower descendants, unlike Murdoch’s self-imposed 31-year limit. This highlights Kenya’s progressive shift, enabling enduring legacies where trustees uphold fiduciary standards indefinitely.

To this end, the Murdoch family trust dispute illuminates universal truths about trusts: they demand precision, resist change, and reflect family dynamics and values. The Murdoch case emphasises prioritising precision, anticipating family dynamics, and aligning trusts with legal and personal objectives—all actionable steps with professional support. These lessons underscore the need for strategic planning.

The Murdoch succession fight is also a cautionary tale—don’t let your family trust become a battleground. At Kubwa and Company Advocates, we craft robust family trusts tailored to Kenya’s legal landscape. Whether you’re safeguarding a business, estate, or legacy, our expertise ensures clarity, compliance, and peace of mind. Take action now to safeguard your family’s future. A well-planned trust today prevents courtroom drama tomorrow. This way, you can secure wealth and harmony for future generations.

Should you require more information, please do not hesitate to contact [email protected] or Schedule a Meeting Now.