Jensen Huang's $140B Nvidia fortune isn't entirely his to control: How wife Lori, family trusts hold the keys — Details

Nvidia CEO Jensen Huang's estimated $140 billion fortune is largely tied up in a complex network of family trusts and limited liability companies (LLCs) jointly held with his wife, Lori Huang, an arrangement that could have significant implications for the ownership, transfer and sale of his shares, according to a CNBC report.

Jensen and Lori Huang jointly own about 800 million Nvidia shares worth approximately $135 billion through trusts and LLCs established primarily for tax and estate planning purposes. And, Huang directly owns another 70 million shares valued at around $12 billion, the news outlet stated.

The unusual ownership structure has added another layer of complexity to Huang's reported exit from the company. While holding shares through trusts is common among technology founders and corporate executives, it is less common for a founder to share ownership of such a large stake with a spouse, tax and estate-planning CNBC said citing experts.

Quick answers to key questions

•5 QUESTIONS

1

How many Nvidia shares do Jensen and Lori Huang jointly own?⌵

They jointly own about 800 million Nvidia shares, worth roughly $135 billion, through trusts and LLCs. Jensen Huang also directly owns around 70 million shares, according to the article.

2

Why do Jensen and Lori Huang hold Nvidia shares in trusts?⌵

The trusts and LLCs were established primarily for tax and estate planning. A living trust can also help a family avoid probate and set out how assets should be managed or distributed.

3

Can Jensen or Lori Huang sell Nvidia shares held in their trusts?⌵

It depends on the type of trust and any restrictions on share transfers. Shares in a revocable living trust may be easier to divide, while neither spouse is likely to be able to independently sell shares held in their irrevocable trusts.

4

What is the difference between the Huangs’ living trust and irrevocable trusts?⌵

The living trust is likely revocable, meaning it can generally be changed or dissolved by its creators under its terms. Irrevocable trusts are generally harder to modify or dissolve once assets have been transferred into them.

5

Could the Huang family trusts limit large sales of Nvidia stock?⌵

The trust structures may make it difficult for either spouse to independently sell or transfer substantial holdings. Company agreements may also restrict the sale or transfer of shares.

The arrangement could also act as a stabilising factor for Nvidia shares, as certain trust structures make it difficult for either spouse to independently sell or transfer substantial holdings.

Here is a closer look at how the Huangs' Nvidia wealth is structured, the role of different trusts and what the arrangement could mean for shareholders.

According to SEC filings cited by CNBC, Jensen and Lori Huang jointly own approximately 800 million Nvidia shares worth roughly $135 billion through multiple trusts and LLCs.

Their holdings are distributed across several entities:

- Jen-Hsun and Lori Huang Living Trust: The couple own approximately 530 million shares as co-trustees of this trust, which was established in 1995.

- Huang 2012 Irrevocable Trust: The trust holds approximately 31.4 million Nvidia shares, with Jensen and Lori serving as co-trustees.

- Huang Irrevocable Remainder Trust: This trust holds approximately 109 million shares and is also managed by the couple as co-trustees.

- Limited liability companies: Approximately 135 million shares are held through LLCs whose sole member is the Living Trust.

Additionally, Lori Huang serves as president of the Jen-Hsun and Lori Huang Foundation, which owns approximately 69 million Nvidia shares. The foundation reported net assets of $9 billion in 2024, according to IRS filings cited by the news outlet.

An SEC filing states that Jensen and Lori Huang may each be deemed to have shared beneficial ownership of the shares and exercise shared voting and investment powers over them.

The Jen-Hsun and Lori Huang Living Trust, established in 1995, is likely a revocable marital trust, according to trust and estate attorneys cited by CNBC.

A living trust is a legal arrangement through which individuals transfer ownership of assets into a trust during their lifetime. It allows them to manage their assets and determine how they should be distributed after their death.

One of its key advantages is that it can help families avoid probate, the potentially expensive and public legal process through which a deceased person's estate is administered.

For married couples, living trusts can also offer tax-planning benefits. According to attorneys cited by CNBC, when one spouse dies, the surviving spouse may receive a step-up in the cost basis of the entire trust's assets rather than just their share.

This can potentially reduce the capital gains tax liability when those assets are eventually sold.

Unlike irrevocable trusts, revocable living trusts can generally be modified or dissolved by their creators, subject to the terms of the arrangement.

Kathleen Martone, a partner at Varnum LLP, compared the structure to a joint bank account.

"It's like a joint checking account," she told CNBC.

Shares held in a revocable living trust can typically be sold or divided relatively easily in the event of a divorce, according to attorneys cited by CNBC.

However, that does not necessarily mean the Huangs could freely liquidate their Nvidia holdings.

Companies often have agreements with executives and their trusts restricting the sale or transfer of shares to prevent large-scale liquidation.

Leslie Evans, a partner at Withers, told CNBC that if the couple were to divide the shares held in their revocable trust, transfer restrictions could determine how the assets are distributed.

Jensen Huang could potentially retain the Nvidia stock while Lori receives other assets or an equalisation payment. Alternatively, she could receive the financial benefits of the shares without necessarily acquiring voting or management rights.

The exact outcome would depend on the terms governing the trust and any applicable restrictions on share transfers.

The more complicated part of the Huangs' ownership structure involves their two irrevocable trusts.

Unlike revocable trusts, irrevocable trusts generally cannot be modified or dissolved freely once assets have been transferred into them. Changes typically require consent from beneficiaries or court approval, depending on the trust's terms and applicable state laws.

These arrangements are frequently used by wealthy individuals for estate planning, asset protection and reducing potential estate tax liabilities.

According to attorneys cited by CNBC, the Huang 2012 Irrevocable Trust is likely an intentionally defective grantor trust.

This is a type of irrevocable trust in which the creator transfers assets into the trust but continues to be treated as the owner for income tax purposes.

The arrangement can offer significant estate-planning advantages.

For instance, the creator can lend money to the trust to purchase assets and pay the income taxes generated by those assets. This allows the trust's assets to grow without being reduced by the income tax payments, while the creator's personal wealth is used to meet those tax obligations.

The appreciation in the trust's assets can also remain outside the creator's taxable estate, potentially reducing future estate tax liabilities.

Azriel Baer, a trust and estates partner at Farrell Fritz, told CNBC that the arrangement allows the trust's principal to continue growing while the creator uses personal taxable assets to pay the taxes generated by the trust.

The Huangs' other irrevocable trust, the Huang Irrevocable Remainder Trust, was likely established for the benefit of their children, according to attorneys cited by CNBC.

Unlike assets held in a revocable trust, Nvidia shares placed in an irrevocable trust are generally more difficult to withdraw, sell or transfer.

Since Jensen and Lori Huang are co-trustees of both irrevocable trusts, neither is likely to be able to independently remove or sell the shares held in them, according to attorneys cited by CNBC.

Kathleen Martone told CNBC that an irrevocable trust operates as a separate entity with its own provisions and can provide estate and asset protection.

Such structures may also offer protection against claims arising from a divorce, although the extent of that protection depends on the trust's terms and applicable law.

Whether an irrevocable trust can be modified or its assets transferred into another trust — a process known as decanting — also depends on state law.

The Huangs live in California, where the rules governing changes to irrevocable trusts are relatively strict, according to attorneys cited by CNBC.

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