Gwynne Shotwell’s $300 million SpaceX pledge to Trump Accounts shows billionaires a tax-smart way to give away their own company’s stock
Source: Fortune ·
New Treasury rules let the ultrawealthy send shares of their own companies to millions of kids, as long as the gift goes through a charity.
From the source
In a new type of philanthropy, billionaire SpaceX president Gwynne Shotwell has pledged to give more than 2 million American kids a piece of her company through Trump Accounts. Under new Treasury rules, the ultrawealthy can now do the same with theirs, and the tax code makes it an especially efficient way to give. The rules, which took effect Sept. 30, let wealthy donors, working through charities such as private foundations, put shares of publicly traded U.S. companies directly into Trump Accounts, the tax-advantaged investment accounts for children that launched July 4. As of Oct. 1, the Treasury had opened an account for nearly every eligible child under 18, or about 60 million kids. Previously, money in Trump Accounts went into low-cost index funds, which spread an investment across hundreds or thousands of companies, theoretically lowering the risk of losing everything if one company tanks. But the new rules make an exception for donated stock, opening the door for the…