People tell me that the billionaires have secrets so I finally read this NYT article from last year. The writer seems angry. It turns out that I already knew about the techniques Jensen Huang of Nvidia is using. The passage of the OBBB raised the estate tax credit enough that I have no immediate concerns about the estate tax. Depending on longevity, investment returns, and luck could potentially change.
Jensen put a few million dollars of company stock into an irrevocable trust which became billions. It may have been set up as an "intentionally defective" trust so that he could pay capital gains from his personal account. He and his wife also have had several GRATs.
The couple also started a foundation and gifted appreciated shares for a tax deduction. They have had the foundation donate to a donor advised fund. The NYT writer seems to think that there is something nefarious about the fact that control of the DAF can pass to heirs without estate tax and that the fund could potentially ask for favors in exchange for grants.
Except for perhaps the private foundation the strategies are accessible to the merely prosperous. I think the real “secret” is having a massively successful company and a large increase in the stock price after funding the trusts.
FWIW, the Huangs have been active philanthropists. It seems that being successful makes you a target of some writers.
Please let me know if any of you know real billionaire secrets or anything better than giving the money to charity or using the mundane trusts the Huangs use.
Link should be a free
NYT link- https://www.nytimes.com/2024/12/05/...e_code=1.v08.ck_3.xW6VEaFAyv-W&smid=url-share
Jensen put a few million dollars of company stock into an irrevocable trust which became billions. It may have been set up as an "intentionally defective" trust so that he could pay capital gains from his personal account. He and his wife also have had several GRATs.
The couple also started a foundation and gifted appreciated shares for a tax deduction. They have had the foundation donate to a donor advised fund. The NYT writer seems to think that there is something nefarious about the fact that control of the DAF can pass to heirs without estate tax and that the fund could potentially ask for favors in exchange for grants.
Except for perhaps the private foundation the strategies are accessible to the merely prosperous. I think the real “secret” is having a massively successful company and a large increase in the stock price after funding the trusts.
FWIW, the Huangs have been active philanthropists. It seems that being successful makes you a target of some writers.
Please let me know if any of you know real billionaire secrets or anything better than giving the money to charity or using the mundane trusts the Huangs use.
Link should be a free
NYT link- https://www.nytimes.com/2024/12/05/...e_code=1.v08.ck_3.xW6VEaFAyv-W&smid=url-share
