Musk's proposed SpaceX share gift could restrict when children sell stock
Treasury's temporary Trump Account rules could limit when children sell donated shares if Elon Musk uses the program for his planned 2027 gift.
Elon Musk's plan, announced on October 19, 2026, to give children in America a SpaceX share next year could leave recipients unable to sell the stock for years if he distributes it through Trump Accounts. CNBC reported on October 20 that Treasury's temporary rules restrict sales of shares donated to the US children's investment program. Musk has not confirmed that he will use the accounts.
That potential restriction is a new consideration following our earlier report on Musk's SpaceX share pledge. CNBC said Musk appeared to suggest a connection to Trump Accounts when he thanked Brad Gerstner, an architect of the program, for helping enable the gift. President Donald Trump thanked Musk for the pledge on October 19, according to Hindustan Times.
When children could sell donated SpaceX shares
Under Treasury's temporary rules as described by CNBC, families cannot refuse stock donated to Trump Accounts. Beneficiaries generally cannot sell those shares until the earlier of five years after the gift or the end of the calendar year in which they turn 17. The rules remain subject to revision after public comment.
Trump Accounts are available to US citizen children under 18 with valid Social Security numbers. About 70 million accounts had been created, including more than 60 million through auto-enrollment, according to Treasury figures reported by CNBC. A Treasury official told CNBC the stock-gift rules are intended to encourage donations and help children build long-term wealth.
Why the stock-gift rule faces legal questions
Trump Account funds generally may be invested only in low-cost index funds and exchange-traded funds. CNBC reported that Treasury treats directly donated stock differently because account funds are not used to buy it. Tax strategist Jane Ditelberg told CNBC a court could nevertheless regard a requirement to retain individual shares as an investment decision; she said she could not predict a ruling. Ditelberg also questioned how the donation process would accommodate state-law rights to disclaim an asset.
Attorney Carolyn Schenck told CNBC that Treasury has broad authority to set Trump Account terms and that the holding requirement formally comes from Treasury, rather than the donor. The differing views leave the rule's legal position unresolved.
SpaceX President Gwynne Shotwell previously pledged shares for more than 2 million children, primarily in central Texas, according to Hindustan Times. CNBC reported that she planned to use Trump Accounts and that her gift had yet to be distributed. Musk's own pledge is for 2027; the method and terms of his proposed distribution have not been announced.
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Sources and context
- If Elon Musk gifts SpaceX stock through Trump Accounts, it will come with a catchCNBC
- Trump thanks ‘legendary friend’ Elon Musk for pledging SpaceX stock to American children, hails him for his ‘incredible generosity’Hindustan Times
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.