Billionaires are giving your kid stock. Should you say thank you?

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Good morning. Should we celebrate billionaires donating shares in their companies? Elon Musk announced on X yesterday that he’s going to give every kid under 18 in the U.S. a share of SpaceX next year. At $147.96 per share, that’s about $10.7 billion worth of stock. (SpaceX President Gwynne Shotwell pledged last week to give more than 2 million kids a share of her stock through a Trump Account.) Meanwhile, Anthropic co-founder and President Daniela Amodei announced that the company will commit 5% of its shares to the Anthropic Public Benefit Fund, a wholly owned LLC “dedicated entirely to the public benefit.”

One reason for the sudden burst of generosity into Trump Accounts may be that the U.S. Treasury changed the rules on Sept. 30 to let individuals donate stocks that recipients must hold on to for at least five years. That could make donating stock much more attractive than giving cash to these accounts, which is how Susan and Michael Dell donated $6.25 billion last year. Stock donors can deduct the full market value of their shares without paying capital gains tax on the assets’ growth. For founders sitting atop a mountain of stock, that beats selling shares, paying tax, and then giving away the cash. (Recipients will pay income tax when the stock is sold.)

But there are downsides to letting donors gift their shares. For one thing, individual stocks are more volatile than an index fund and the five-year holding period means millions of shareholders can’t sell if........

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