Under the Alaska Native Claims Settlement Act Amendments of 1987, settlement common stock of Native corporations can be transferred as an inter vivos gift from a shareholder to another person under specific conditions. (An "inter vivos gift" is a voluntary transfer by one living person to another without payment or other consideration.)
By law, the recipient of K'oyitl'ots'ina shares transferred by an inter vivos gift must also be a Native or adescendant of a Native who is related to the donor (the shareholder giving the gift of stock) by blood or adoption, and not simply by marriage.
To be considered "Native," you must be a citizen of the United States who is at least one fourth degree Alaska Indian, Eskimo or Aleut or a combination thereof.
To be considered a "descendant of a Native," you must:
- Be lineally descended from a Native or an individual who would have been considered Native if he or she were alive on December 18, 1971; or
- Be an adoptee of a Native or a descendant of a Native, whose adoption occurred prior to his or her majority, and is recognized at law or in equity.
Things to Consider Before Gifting Your Stock
- The shares must be given as a true gift. You cannot receive anything of value in exchange for the gift of stock, nor can you be promised anything of value.
- It is preferrable if gifts are made in whole shares. Record maintenance of fractional share gifts is difficult and is therefore discouraged.
- If you give all of your shares away, you will no longer be a K'oyitl'ots'ina shareholder.
- The transfer of shares is irrevocable. You lose all rights to any stock that you gift, and you cannot get the stock back.
- Voting rights associated with any shares you transfer will belong to the person who receives the shares, and you will no longer be entitled to vote those shares.
- The person receiving the stock has the right to will the stock to anyone he or she chooses. Should that person die without leaving a will, his or her stock would be distributed to that person's heirs in accordance with the Alaska laws of intestate succession.
- Once the stock is transferred, dividends and distributions associated with the transferred shares will belong to the person who receives the shares, and that person will be responsible for payment of any and all taxes due in connection with those dividends and distributions.
Instructions for transferring shares