By Jonathon Tainsh

Lessons From the Murdoch Family (and HBO’s Succession)

When Rupert Murdoch stepped back from his empire in 2023, the world watched closely. The family’s battle over control of trusts, succession, and the future of News Corp and Fox mirrored the drama of HBO’s Succession, which was widely believed to be based on the Murdochs themselves.

Most Australian families do not control global media companies, but the principles are the same: how do you prepare children and grandchildren to inherit not just assets, but responsibility, decision-making authority, and the values that created the wealth in the first place?

The answer is deceptively simple: start early. Families that begin educating beneficiaries well before they inherit tend to preserve wealth — and relationships — across generations. Families that do not? History shows wealth often fades within two or three generations, the so-called “shirtsleeves to shirtsleeves” cycle.

The Scale of the Wealth Transfer

Australia is in the middle of the largest intergenerational wealth transfer in history. The Productivity Commission estimates around $3.5 trillion will pass between generations by 2050, largely tied up in housing, superannuation, and family businesses.

Interestingly, inheritances are arriving later than many expect — more than half go to people already in their 50s and 60s. For the rising generation, this means learning to manage wealth while already juggling mortgages, retirement planning, and their own children. The challenge is not simply how much wealth is transferred, but how prepared heirs are when it arrives.

Why Preparation Matters

Money passed on without preparation rarely strengthens families. Instead, it often fuels conflict, financial mismanagement, or confusion. The Australian Securities and Investments Commission encourages families to talk openly and early about money — secrecy or last-minute disclosures usually create stress.

Prepared beneficiaries tend to be confident beneficiaries. And confidence comes from exposure, education, and trust, not from surprises.

A Roadmap for Readiness

Preparing heirs is less about a single conversation and more about a lifetime of gradual learning. Think of it as a ladder, with each stage building on the last:

• Childhood: Pocket money is an opportunity to connect money with values such as patience, generosity, and responsibility.
• Teen years: A bank account and a first part-time job can teach budgeting, saving, and digital safety.
• Young adulthood: Filing tax returns, making superannuation contributions, or saving for a home deposit brings financial concepts to life.
• Adulthood: Involvement in reading financial statements, understanding investment basics, or even contributing to family discussions about money prepares heirs to govern, not just inherit.

For some families, this preparation may be as simple as guiding children through the basics of financial independence. For others, it may extend to more structured approaches such as involving the next generation in philanthropy or family business planning.

Governance: Frameworks That Outlast Wealth

Families whose wealth endures beyond the founder’s generation almost always have one thing in common: effective governance. This does not need to be corporate or heavy-handed.

For some families, governance may simply mean having clear conversations about who makes decisions and how. For others, it might extend to:

• A family charter that captures values and purpose.
• A family council that meets regularly to discuss decisions.
• Clear roles for trustees, directors, and advisers.

Good governance, at any level, is the scaffolding that helps families preserve wealth — and relationships — long after the first generation has gone.

What Beneficiaries Need to Understand

Beneficiaries do not need to be experts in tax or law, but they should understand the basics:

• How wills and executors work.
• How superannuation death benefits are directed.
• The role of trusts in protecting and distributing assets.
• The importance of planning for ownership and leadership transitions in family businesses.
• That tax can erode inheritances if planning is not done in advance.

Plain-English explanations go further than technical detail. When heirs know what to expect, they are less likely to be blindsided when the time comes.

Confidence Through Practice

Confidence is built through experience. Some families encourage young adults to manage a small savings or investment account with reporting back to parents. Others set goals such as saving for a first car or home deposit, offering support and guidance along the way. These practical steps can make financial lessons tangible and lasting.

Talking About Money Without Breaking the Family

Money conversations can be tense. The families that succeed tend to:

• Start with values and goals before moving to numbers.
• Define what “fair” means (fair does not always mean equal).
• Use plain-English summaries of complex structures.
• Keep conversations regular, so money is not taboo.

Beyond the Balance Sheet

Preparing heirs is not just about technical training. It also means planning for risks such as relationship breakdowns, scams, or liquidity pressures when estates are tied up in property. It means ensuring enduring powers of attorney and guardianship are in place long before capacity is lost. It means using insurance strategically — not just for protection, but to equalise estates or fund business succession.

And in today’s world, it means remembering digital assets — from cryptocurrency wallets to social media accounts — that can be lost if not documented.

Philanthropy as a Training Ground

Philanthropy can be one of the best ways to prepare beneficiaries. When children and young adults are given responsibility for evaluating charities, allocating grants, and reporting on outcomes, they learn governance, accountability, and purpose in a safe environment.

The Takeaway: Preservation Requires Preparation

The Murdochs — and their fictional cousins in Succession — remind us what happens when wealth, governance, and family collide. For most Australian families, the dollar amounts may be smaller, but the emotions are just as large.

The lesson is clear: preservation of wealth requires preparation of people. The earlier heirs are exposed to learning, decision-making, and guidance, the more confident they will be. And that confidence leads to resilience — for assets, and for the family relationships that matter most.

Want to Continue the Conversation?

If this article has raised questions about preparing your own beneficiaries, or you would like guidance tailored to your family’s situation, please feel free to get in touch with our team. We would be glad to discuss how preparation today can build confidence for tomorrow.

Disclaimer

People & Partners Wealth Management Pty Ltd ABN 67 127 250 613 is a corporate authorised representative of Fortnum Private Wealth Ltd ABN 54 139 889 535, holder of Australian Financial Services Licence (AFSL) No. 357 306. The content of this article is for general informational purposes only and does not constitute personal financial advice. It does not take into account your individual objectives, financial situation, or needs. Any advice we provide will be detailed in a formal advice document. The opinions expressed in this article are those of the authors at the time of writing and should not be taken as a recommendation to act. To the extent permitted by law, Fortnum Private Wealth Ltd and its associates accept no liability for any loss or damage incurred as a result of reliance on this communication.