• Jobs' Heir To Manage $4.6 Billion Trust of Disney Shares

    After Jobs passed away last month, speculation arose as to what would be done with his estate. As of right now, it is estimated to be worth roughly $7 billion. Recent securities filings revealed that his Disney shares, which represented the majority of his wealth have been placed in a trust. This trust is Disney’s largest shareholder with a 7.7 percent stake in the media conglomerate. The shares were originally acquired by Jobs in 2006 when he sold Pixar to the company for $7.4 billion. At the time, he owned more than half of Pixar’s stock.

    Recently, tax experts continue to suggest that Jobs’ family should sell off all of his Apple and Disney stock in order to avoid higher taxes later on while also diversifying their portfolio. Furthermore, according to a recent report from Bloomberg, the family could have saved $867 million in capital gains taxes. Kacy Gott, the Chief Planning Officer at the Wealth-Management firm Aspiriant told the publication that she “can’t see any reason not to sell all of it. They should have been looking to diversify years ago.”

    Placing the shares into a trust is a method for mitigating tax exposure on gains made from the shares, although it isn’t clear exactly what type of trust was set up in this case. According to Bloomberg, earlier proxy statements showed that Jobs was in the process of moving his assets into trusts toward the end of his life. The trust is currently estimated to be valued around $4.6 billion. As of right now, people continue to speculate that Powell will use a portion of the trust’s funds for philanthropic work since she’s been an active participant in the non-profit sector and even sits on the board of the Teach for America program. Her next move remains unknown but time will tell what she ends up deciding upon.

    Source: Associated Press, Bloomberg
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