Publications

Succession:  The Brewing Controversy Over the Murdoch Family Trust
Trust Administration, Trusts, Family Business Matthew Erskine Trust Administration, Trusts, Family Business Matthew Erskine

Succession: The Brewing Controversy Over the Murdoch Family Trust

The Murdoch Family Trust, Rupert Murdoch's media empire, is embroiled in a significant dispute that has implications far beyond the world of media. As reported by The New York Times, this unfolding drama sheds light on the complexities of managing high-value assets—whether they be media companies, art collections, or estates.

The trust, established during Murdoch's 1999 divorce, was designed to grant voting rights to his older children while securing financial benefits for his younger ones. Now, at 93, Murdoch is in a legal battle with three of his four adult children over who will control the empire after his death. This situation echoes similar conflicts in other media dynasties and offers valuable lessons for anyone managing assets with high emotional and financial stakes.

Key Takeaways:

Succession Planning: Just as family businesses need clear plans for leadership transition, so too do artists and collectors to preserve their legacy.

Governance Structures: Establishing clear decision-making processes is essential to prevent disputes.

Common Goals: Aligning the interests of all stakeholders ensures long-term value preservation.

Professional Mediation: Neutral third parties can help navigate complex dynamics and protect the integrity of valuable assets.

Whether you're managing a media empire or a treasured art collection, the principles at play in the Murdoch case offer crucial insights for ensuring your legacy endures.

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Climate Change is Code Red for Humanity: Is ESG Investment Code Red for Fiduciaries?

Climate Change is Code Red for Humanity: Is ESG Investment Code Red for Fiduciaries?

Confusion lies in which ESG factors in investing a fiduciary should consider. Factors that directly benefit a beneficiary of the trust are allowed, but not factors that benefit a third party based on a moral or ethical basis, and only indirectly benefit the trust beneficiaries. The assumption that an ESG investment will always outperform a non-ESG investment alone can’t justify prioritizing ESG factors. More is required when drafting trusts and other documents.

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New Reporting Requirements On Cryptocurrency, Nonfungible Tokens And Other Digital Asset Transactions.
Art, NFT, Trusts, Fiduciary Matthew Erskine Art, NFT, Trusts, Fiduciary Matthew Erskine

New Reporting Requirements On Cryptocurrency, Nonfungible Tokens And Other Digital Asset Transactions.

The U.S. Senate has passed the “Build America Act of 2021” also known as the bipartisan infrastructure bill, that includes new reporting for cryptocurrency transactions and brokers of cryptocurrency…the Bill means that estate plans including any sort of digital asset in an estate will become more complicated.

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The Coming Storm
Taxes, Tax Planning, Trusts, CRAT, GRAT Matthew Erskine Taxes, Tax Planning, Trusts, CRAT, GRAT Matthew Erskine

The Coming Storm

Yesterday, May 20, 2021, Senator Bernie Sanders (I-VT) introduced S. 994, the "For the 99.5 Percent Act," to "reinstate estate and generation-skipping taxes, and for other purposes.". This Act amends the Internal Revenue Code by increasing the gift and estate tax rates from 40% to a high of 65% and decreasing over the basic exclusion amount from $10 million, adjusted for inflation to now over $11.7 million, to $3.5 million with no adjustment for inflation .

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For The 99.5 Percent Act - What It Is, What It Does And What To Do About It.
Trusts, GRAT, Tax Planning, Estate Planning Matthew Erskine Trusts, GRAT, Tax Planning, Estate Planning Matthew Erskine

For The 99.5 Percent Act - What It Is, What It Does And What To Do About It.

On March 25, 2021, Senator Bernie Sanders (I-VT) and Senator Sheldon Whitehouse (D-RI) introduced the “FOR THE 99.5 PERCENT ACT” which will dramatically and historically change estate planning by reducing the federal estate and gift tax credits, increasing estate, gift, and GST tax rates and including assets in certain trusts that are not now includible in estates. The changes would be effective for decedents dying and gifts made on or after December 31, 2021. Planning: This is a “use-it-or-lose-it-now” provision which means that your $11,700,000 exemption can be passed either by dying or by making gifts. Transfers must take place before the effective date of these changes. The following is a summary of the changes

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Forbes: Flexibility is Key to Planning for LGBTQ, Blended Families, Cohabitation and Other Nontraditional Families

Forbes: Flexibility is Key to Planning for LGBTQ, Blended Families, Cohabitation and Other Nontraditional Families

Some people are concerned that, with the new conservative 6-3 majority on the Supreme Court, that protections for non-traditional families will be rolled back. Regardless of the decisions at the Supreme Court, or the impact on the state family courts, there are many ways that non-traditional families can maintain control. This applies not only to the LBGTQ couples, but also for families where there is gay divorce, blended families and stepchildren, nonmarital cohabitation, single parents by choice, multinational families, children born through assisted reproductive technologies (ART); and transgender, or gender non-binary, or gender fluid individuals.

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