Alaska Native Settlement Trusts

Alaska Native Settlement Trusts offer a way for Alaska Native Corporations to preserve and manage their assets with a focus on cultural, social, and economic well-being of the corporation's shareholders. These trusts are typically designed to provide shareholder benefits such as financial security, cultural preservation, educational opportunities, and community development. While Alaska Native Settlement Trusts can offer significant benefits, they also involve legal and financial complexities.  

​

These tax-favored vehicles were first authorized by Congress in 1988 to promote the health, education, and welfare of Alaska Native beneficiaries and preserve the heritage and culture of Natives. Sorensen & Edwards has long been at the forefront of how these unique legal entities can best be utilized. This has included not only the drafting of Settlement Trust agreements tailored to the specific needs of each Alaska Native Corporation, but also assisting in the implementation of a Settlement Trust once it has been approved by the corporation's shareholders. We have been lead legal counsel on the vast majority of Settlement Trusts established since 1988. This includes obtaining appropriate letter rulings from the IRS National office and the SEC.

The Tax Cuts and Jobs Act of 2017 includes provisions to encourage the formation and funding of Settlement Trusts, including provisions that permit Native Corporations to claim a tax deduction for contributions to the Settlement Trust. The ability to fund a long-term Settlement Trust on a pre-tax, rather than an after-tax, basis provides a powerful incentive for the future use of these trusts to provide for the health, education, and welfare of Alaska Natives.