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Laurene Powell, Jobs' widow, to manage $4.6B in trust

updated 11:00 pm EST, Wed November 23, 2011

May be used for philanthropic work

Before the death of Apple co-founder Steve Jobs, he had begun moving his assets into trusts in order to avoid undue tax liabilities. According to securities filings reported by Yahoo Finance, Jobs' 138 million shares of the The Walt Disney Company -- a majority of his fortune, worth about $4.6 billion -- will go into a trust managed by his wife, Laurene Powell Jobs. What will happen to the rest of holdings, such as his $2 billion in Apple stock, remains unclear.

Jobs' total worth is estimated to be around $7 billion, in part due to stock grants given to him by Apple along with money he received when selling NeXT to Apple and Pixar to Disney. Tax experts have recently suggested that the family sell off Jobs' Apple and Disney stock in order to avoid a five-percent rise in capital gains taxes (which will move from 15 percent to 20 percent in 2013) and duck a 3.8 percent levy on unearned gains. The same experts recommended the family diversify their portfolio in order to minimize risk.

Putting the Disney shares into a managed trust may mitigate the family's exposure on gains, but it depends on the type of trust. Powell has been associated with several charities, and currently sits on the board of the Teach for America program, one of the few organizations in recent years that Apple has directly worked with to donate iPads to teachers in rural and underfunded districts.

The trust will now become Disney's largest shareholder, with 7.7 percent stake in the company. Jobs originally got the shares when Disney bought Pixar for $7.4 billion in 2006. [via AppleInsider]




by MacNN Staff

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Comments

  1. rtbarry

    Joined: Dec 1969

    +6

    when i want accounting advice...

    i won't be getting it from here.

    sheesh. what a weird, meandering article. i was expecting more info (or conjecture as usual) on the potential philanthropic efforts.

  1. slboett

    Joined: Dec 1969

    +3

    Love Steve...

    I really do. But does anyone else find the Left's hypocrisy on taxes delicious? Once us dopey Americans wake up and realize the whole government is comprised of the same dolts ripping us off, the better off we'll be. Not an R or D, just laugh at the ones that claim to be so much more concerned for their fellow man - until it's THEIR money. And spare me - these guys begging Obama to "raise my taxes" are free right now to send the IRS a check. They don't. Never will.

  1. climacs

    Joined: Dec 1969

    +3

    @slboett

    the tax system is radically tilted in favor of those with wealth. That's a fact. And every single GOP proposal on taxes entails CUTTING TAXES EVEN MORE FOR THE WEALTHY.

    if Congress would simply allow the Bush tax cuts for the wealthy to expire, there would be no deficit problem.

  1. climacs

    Joined: Dec 1969

    +4

    Billionaires Avoid Reporting To IRS

    another example of how the tax system is rigged in favor of the wealthy:

    http://www.bloomberg.com/news/2011-11-21/billionaires-duck-buffett-17-tax-target-avoiding-reporting-cash-to-irs.html

    When billionaire Billy Joe “Red” McCombs, co-founder of Clear Channel Communications Inc., reported a $9.8 million loss on his tax return, he failed to include about $259 million from a lucrative stock transaction.

    After an audit, the Internal Revenue Service ordered him to pay $44.7 million in back taxes. McCombs, who is worth an estimated $1.4 billion and is a former owner of the Minnesota Vikings, Denver Nuggets and San Antonio Spurs sports franchises, sued the IRS, settling the case in March for about half the disputed amount.

    McCombs’s fight with the IRS illustrates an overlooked facet in the debate over tax rates paid by the nation’s wealthiest. Billionaires -- from McCombs to Philip Anschutz to Ronald S. Lauder -- who derive the bulk of their wealth from stock appreciation are using strategies that reap hundreds of millions of dollars from those valuable shares in ways the IRS often doesn’t classify as taxable income, securities filings and tax court records show.

    “The 800-pound gorilla is unrealized appreciation,” said Edward J. McCaffery, a professor of law, economics and political science at the University of Southern California in Los Angeles.

  1. facebook_Samuel

    Via Facebook

    Joined: Nov 2011

    +3

    Hold the Apple Stock

    She and Jobs's son, Reed, should keep the Apple stock so that they can continue to forward Steve's intentions. Selling it would only remove the remaining presence Steve had.

  1. apple4ever

    Joined: Dec 1969

    -1

    Good for Steve

    The less money that goes to the government, the less that will be wasted and the more will be used by those who actually create jobs and fuel the economy.

    The tax is unfair, to the wealthy and middle class. To jumpstart the economy, the only solution is to slash the government and slash taxes for everybody.

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