Jensen Huang's resignation from Nvidia has introduced a layer of complexity regarding his massive equity stake, which is primarily held in trusts co-owned with his wife, Lori Huang. According to attorneys and recent Securities and Exchange Commission filings, the couple jointly controls a substantial portion of their wealth through a sophisticated network of legal entities designed for estate and tax planning. This arrangement creates uncertainty for both the company's shares and the founder's financial future as he steps down from his leadership role.
SEC documents indicate that the Huangs jointly own approximately 800 million Nvidia shares, valued at roughly $135 billion, through various trusts and limited liability companies. In addition to this jointly held stake, Jensen Huang personally owns about 70 million shares, which are worth approximately $12 billion. While holding company stock in trusts is a standard practice among technology executives, legal experts note that having equal ownership with a spouse in such a large scale is less common. The structure may actually serve as a stabilizing factor for the stock, as it makes it more difficult for either spouse to execute a rapid sale of shares.
The bulk of the joint holdings, specifically around 530 million shares, are held as co-trustees in the Jen-Hsun and Lori Huang Living Trust, an entity established in 1995. The couple also serves as co-trustees for the Huang 2012 Irrevocable Trust, which holds 31.4 million shares, and the Huang Irrevocable Remainder Trust, holding 109 million shares. Additionally, about 135 million shares are managed by LLCs where the Living Trust is the sole member. Lori Huang also serves as the president of the Jen-Hsun and Lori Huang Foundation, which owns 69 million shares and reported $9 billion in net assets in 2024.
Attorneys explain that the living trust is likely a revocable marital trust created to avoid the public and costly probate process upon the death of a spouse. A significant tax advantage of this arrangement is that the surviving spouse receives a step-up in the cost basis for the entire trust's assets, not just their individual share. Kathleen Martone, a partner at Varnum LLP, described the dynamic as similar to a joint checking account, noting that shares in such trusts can typically be sold or divided with relative ease in the event of a divorce.
However, the more complex and tax-advantaged structures involve the irrevocable trusts. In these entities, the creator transfers ownership of assets into the trust, and the terms cannot be changed without beneficiary consent or a court order. The 2012 trust is likely an intentionally defective grantor trust, which allows the creator to pay income taxes on the trust's earnings while gifting the assets to the trust in a way that escapes estate tax. This structure also allows the trust to avoid capital gains taxes on any appreciation of the shares.
Because both Huangs are co-trustees of these irrevocable entities, neither can likely remove or sell the shares independently without the other's cooperation. Leslie Evans, a partner at Withers, noted that if the couple were to divide assets, transfer restrictions might apply, potentially leaving Jensen Huang with the stock and voting rights while Lori Huang receives other assets or an equalization payment. The Huang Irrevocable Remainder Trust is believed to be set up for the benefit of their children, making it even less likely that the terms would be altered.
For Nvidia shareholders, these irrevocable trusts offer a degree of stability. Since the terms are difficult to change, particularly under California law where the couple resides, it is unlikely that either spouse will quickly liquidate their positions. Experts suggest that if the trusts are indeed for the benefit of their children, there is little incentive to pull the assets back into their personal estates, providing a buffer against market volatility during the transition period.
