They set up a financial vehicle known as an irrevocable trust and moved 584,000 Nvidia shares into it, according to a securities disclosure that Mr. Huang filed. The shares at the time were worth about $7 million, but they would eventually generate tax savings many times greater.
The $7 million of shares that Mr. Huang moved into his trust in 2012 are today worth more than $3 billion. If those shares were directly passed on to Mr. Huang heirs, they would be taxed at 40 percent — or well over $1 billion.
Instead, the tax bill will probably be no more than a few hundred thousand dollars.
