Episode Title: Celebrity Estates: The Murdoch Family Trust and Irrevocable Planning with Mark Parthemer
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What should planners consider when an irrevocable trust no longer fits the family it was designed to serve?
For estate planning professionals advising families with closely held businesses, that question can become especially difficult when beneficiaries have different roles, financial interests and ideas about the company’s future.
In this episode of Celebrity Estates, Senior Editor David Lenok speaks with Mark Parthemer, chief wealth strategist and Florida regional director at Glenmede Trust Company, about the Murdoch family trust dispute and what it can teach advisors and families about irrevocable trust planning.
Using the fight over control of Rupert Murdoch’s media companies as a starting point, Mark explains why an irrevocable trust may sometimes be modified, why changing personal preferences usually isn’t enough, and how combining equal economic interests with equal voting rights can create problems when only some family members are involved in the business.
David and Mark also examine the difference between family governance and legal control, ways trust protectors and decanting provisions can provide flexibility, and why estate plans can become outdated as families change. Their conversation also covers privacy, revocable trusts and the importance of thinking carefully about how a trust should respond to circumstances that may look very different decades into the future.
Mark discusses:
- Why irrevocable trusts can sometimes be modified, but changing personal preferences usually isn’t enough
- How equal economic value and equal control can create conflict when only one child works in the family business
- Why family governance can guide relationships, while the written trust terms still determine legal control
- How trust protectors, decanting powers and other mechanisms can create room for future family changes
- Why privacy can be a planning goal, and when a revocable trust may address it without extra complexity
Resources:
- Listen to Celebrity Estates on Wealth Management
- Subscribe and listen to Celebrity Estates on Apple Podcasts
- Subscribe and listen to Celebrity Estates on Spotify
- Trust and Estates Magazine
Connect With David Lenok:
- david.lenok@informa.com
- Wealth Management
- LinkedIn: David Lenok
- LinkedIn: Informa
- LinkedIn: Wealth Management
Connect With Mark Parthemer:
About Our Guest:
Mark Parthemer is Glenmede Trust Company’s National Chief Wealth Strategist. He is responsible for developing and communicating Glenmede’s position and strategy concerning tax, estate planning, and fiduciary matters pertinent to clients and their advisors.
Prior to joining Glenmede, Mr. Parthemer served as managing director for TIAA and managing director and senior fiduciary counsel for Bessemer Trust, working with ultra-high-net-worth clients to deliver sophisticated tax and estate planning advice and provide tailored guidance. His previous roles include law partner at Duane Morris, LLP, and senior tax professional at PricewaterhouseCoopers.
Mr. Parthemer is on the board of directors of the Florida Bankers Association and immediate past president of its Trust and Wealth Management Division. He is also group vice chair for the American Bar Association, RPTE Trusts and Estate Practice Group.