Laurene Powell Jobs might never find a better time to sell her late husband Steve’s $6.78 billion stake in Apple and Walt Disney Co., according to wealth management experts who talked to Bloomberg News. Jobs’ heirs could sell all their shares now and avoid $867 million in capital gains taxes. If Steve Jobs left everything to his wife, the family wouldn’t be liable for the 35% estate tax until she dies or gives money to others. “I can’t see any reason not to sell all of it,” said Kacy Gott of wealth-management firm Aspiriant. Another reason advisers said Jobs’ heirs should sell some stock to reduce the estate’s risks is that the capital gains tax is set to rise to 20% percent in 2013 from 15%. High-income Americans will also be subject to a 3.8% levy on unearned gains.
From an investment standpoint, all the advisers who spoke to Bloomberg said Jobs’ holdings should be more diversified — even though Disney and particularly Apple stock have performed better than Warren Buffet’s Berkshire Hathaway by comparison over corresponding time frames. Jobs owned 138 million Disney shares, valued Monday at $4.74 billion, and 5.55 million Apple shares worth $2.05 billion, according to filings. Jobs also moved his holdings into trusts as his health worsened. Trusts let people distribute wealth over time and avoid probate fees. If Jobs had sold all his Disney and Apple shares the day before he died, he would have registered a gain of about $5.78 billion and a tax bill of $867 million. That’s based on his investment of $55 million in Pixar Studios, now part of Disney, and Apple shares granted in March 2003. Disney stock would be more complicated to sell on the open market because the Jobs stake represents almost 12 times the average number of Disney shares traded each day. The Apple holdings amount to less than a third of the 17.6 million shares traded on a daily basis, making an open market sale much simpler.



Fifteen thousand mazoolians ? Holy shlamola! Whaddya gonna do with all that kablingy? #Krustytheklown
They ask if the mourning widow plans to buy any Apple or Disney shares. People lost completely their common sense.
I’m keeping my shares. If Steve had diversified it would have killed the stock price, he had to show faith in his company but his survivors don’t.
Gosh, you mean they might only be left with 6 billion? Someone call the welfare office, get these poor people some aid.
Part of the problem that’s going on in Washington is the fact that the Jobs family can get away with only paying a 15% tax on $6 billion worth of income. No wonder we’re in such a financial mess.
You understand nothing about investing. Capital gains shouldn’t be taxed at the same rate as income. For one, income is typically a guaranteed number – capital gains aren’t, you could potentially lose everything you invested.
Capital gains taxes are also lower because the profits from the company get taxed before dividends are paid out or the gains to capital are recorded to curb the double taxation.
Hear, hear
You are talking about a man who helped pioneer the personal computer industry, helped shepherd computer animation for Hollywood, rejuvenated Apple, launched the smartphone, made the mp3 player popular and with iTunes saved the music industry from free downloads, and finally established the computer tablet as a viable consumer market. Not to mention his work with laser printers for the publishing industry and other things I’m probably forgetting.
How much wealth do you think the man has helped produce over the course of his lifetime? Just think of all the money he’s made for Hollywood with an animated film coming out every other week.
Not to mention all the corporate income taxes and local sales taxes he’s helped generate over the years.
And you want to say something like “can get away with only paying 15%”? Like all his money should belong to the government and his heirs should thank us that we let them keep some money.
No wonder our country is in financial trouble is right.
What are you talking about?!
This is the problem w/ Republicans. NOBODY is saying “all his money should belong to the government” and you claiming so is absolutely RIDICULOUS.
We’re talking 867 million that can help pay for childrens healthcare or college grants or a number of extremely beneficial programs.
And, OMG!, the family will only have 5+ BIIIIIIILION left to survive on.
You want to know what’s wrong with this country Geoff? It’s greed. And people like you that want to squeeze EVERY LAST PENNY from every little corner.
You should be ashamed of yourself.
No one is saying we should take all their money, but their basic assumption is that we have the right to take as much of it as we want.
And as any study of Steve Jobs would show, keeping money in the private sector generates wealth. What if we took a 70% income tax and Steve Jobs didn’t have enough money to work on Pixar? How much revenue would the government have missed out on over the years?
Penny-wise and pound-foolish. You focus on what you see but you completely miss what is unseen.
I would hesitate to call someone greedy if your position is “we have to take a bunch of that person’s money because they have a lot of it and *I* have decided they don’t need all of it.”
“No one is saying we should take all their money, but their basic assumption is that we have the right to take as much of it as we want.”
Good Lord! YOU said it. That’s EXACTLY what YOU said! Do you work for the Bachman campaign? Or is it Perry?
This is YOUR assumption Geoff. And we know what happens when you assume, right?
Incorrect. What’s wrong with our economy is that our tax code allows corporations like GE to pay ZERO dollars in tax and requires the IRS to slave over a 58,000 page tax return to do so. If all corporate taxes were a flat 15% with standardized deductions for expenses and investments in R&D our economy would be thriving.
15% on capital gains is a very fair rate considering the risk that the investor takes on.
You do realize, also, that the lower the capital gains tax, the more willing investors are to make investments in companies and therefore the greater availability of capital for business growth and innovation. This is a key driver for economic development.
I wish our schools were better.
What do you want them to do, pay more taxes so the government can piss it away. Do you know what charities they support? It is their money and they have already paid tax on that money once. Once the government gets it they waste 72% of the money and distribute 28%. Good deal isn’t it.
There are rumors abound that Jobs never really gave much to charity. What an opportunity Mrs. Jobs has to correct that if its true. My God, she couldn’t spend that money in a 100 lifetimes. It’ll be interesting to see what she does with it all.
He actually did it completely anonymously
-RnsW
Most charities are scams that misappropriate most of their donations.
It’d be nice if the analysts at least acknowledged the concept of sentimental value. “I can’t see any reason not to sell all of it.” Is this person a robot? Good grief.
With Jobs dead the company will slowly, by that I mean a decade,the price will be a third at best of what it’s worth now. Sell for this reason alone. Are you kidding with the sentimental sh!t? You sound like an old SNL sketch.
Not sure about sentimental value, but maybe, with a business degree and background, she may just want to sit on the boards of Apple and Disney for a while.
And?
CG’s should be taxed above normal income. You know, income earned from doing a job, building something, making something. Creating something. A society that slowly drives every shred of value from its society into less and less hands will be a very untidy society. A society that will collapse. Or is it divine intention to have only a few very rich people reaping the benefits of all the money they inherited from dad? That worked out well for Medieval Europe didn’t it?
I hate to get snotty, but just sit your butt down and think about this outside of some weird free-market tinted glasses. The consolidation of wealth is not imaginary and it can’t survive forever. No matter what you think about a billionaire being able to keep every dollar they ‘earn’ it can’t continue like that. it’s not sustainable and will end in revolution. And with CEO’s now making 200 to 300 x an average worker, do you really think they are 100 times smarter? 100 times harder working or 100 times more beloved by god? The answer is for the most part they are 100 times luckier. And admitting that means there’s room for a discussion about how to adjust an inequality created at least to some extent, by chance and of course laws that look to protect their luck.
In capitalism, it’s important to encourage the accumulation of capital. Jobs used his wealth to create much more wealth, and not just for him. Actually, mostly for others who invested in or profited from his companies.
Plus, you need to consider the capital gains rate combined with the corporate rate, which hovers (combined) around 50%.
Hate to break it to ya, but Steve Jobs wasn’t a God. He invented some cool products w/ the help of alot of other people, and good for him. But computer animation and home computers — that shit was coming with or without Steve. He just got out in front of it.
And before you piss all over the government, this so-called tyrannical institution provided Steve with a safe place to grow up, an education and a market place that allowed people to invest in his ideas.
I mean, it’s there for a reason…
That’s not really a good plan. I understand the anger, but unlike a “normal income” coming from working there is no guarantee that you will get capital gains from an investment. Hell, you could lose all your money on that investment and become bankrupt. The idea of lower capital gain tax is that it allows people to invest with a little more RISK – REWARD potential. Think of it like gambling. Otherwise, those people with that money might just leave it in the bank and let it acquire low interest. We need that investment capital in the system to generate jobs.
Yes, Job’s heirs should pay all their taxes. I’m pretty sure if nobody told them it was gone, they wouldn’t miss it.
If I had that kind of money, I would make sure one laptop per child existed here, for all American children, particularly in inner cities and develop educational programs around it that usher our children into computer science and engineering. That would be an addition to his legacy I think would make Jobs proud.
I would rather they learn with good old-fashioned paper and pencil. Seriously. Technology can be a crutch that isn’t helpful.
Get real.
Yes, help the obscenely rich avoid paying their taxes. That must be good for the economy. 867 million dollars out of almost 7 BILLION… The Jobs family are real American battlers.
My God, won’t someone think of the great-great-grandchildren and talk to this woman?
Unsolicited financial advice to a recently widowed woman on how to handle her husband’s estate… way to keep it classy Bloomberg.
But perhaps they were trying to make a larger point about estate taxes. If they were what this story illustrates is that even if they do nothing to avoid paying the highest tax rate, very wealthy people get to pass on the great majority of their wealth to their heirs, and even after taxes, the heirs of the wealthy are left with more than enough, and in some cases, more than enough for their children’s chrildren’s children.