Nevada's rise as trust hub showcased in Murdoch family feud, highlighting state's advantages.

From CNBC: 2024-08-13 07:00:02

The Murdoch family feud unfolding in a Nevada court showcases the state’s rise as a hub for global family trusts. Nevada leads the nation in asset-protection trusts due to no income taxes, high secrecy, and strong creditor defenses. Estimates suggest there are hundreds of billions in trust assets in the state.

Driven by the Great Wealth Transfer, U.S. trust and estate assets exceed $5.6 trillion. Nevada remains a top choice for trusts nationwide with no state income tax, high secrecy laws, and flexibility in trust governance. Demand for trusts increases amid concerns over estate tax changes and global wealth tax threats.

In a unique twist, Rupert Murdoch is seeking to change his family trust posthumously to pass control to son Lachlan, claiming financial benefits for all heirs. Nevada allows irrevocable trust changes through “decanting,” making amendments easier. Trust trial begins in September, with potential impact on trust law precedent.

Despite lacking ties to Nevada, the Murdoch family established their trust there, highlighting the state’s appeal. Nevada’s trust laws offer significant advantages, such as confidentiality and flexibility for donors. The case underscores the state’s position as a leading destination for asset protection trusts.



Read more at CNBC: Murdoch family battle highlights Nevada’s secret trust boom