Recommendation for Jobs’ Heirs

Following Steven Jobs death, the Steven P. Jobs Trust acquired beneficial ownership of 138 million common shares of Walt Disney Co., 7.7% of the total outstanding shares. According to a recent 13G regulatory filing, the trust does not intend to influence control.

Now may be the best time for Jobs’ heirs to sell the $6.78 billion of Apple and Walt Disney Co. stock, however,  because the heirs can avoid $876 million in capital gains taxes under federal law. The capital gains tax is expected to rise from 15% to 20% in 2013.

See Experts Say Jobs’ Heirs Should Sell Stock, SF Gate, Nov. 23, 2011; Steven Jobs Trust Reports Holding 7.7% Stake in Walt Disney Co., Bloomberg Businessweek, Nov. 24, 2011; Steve Jobs’ 4.6B in Disney Shares go to Trust, SF Gate, Nov. 23, 2011.

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.