The Article initially discusses the nature of Alaska Native settlement trusts and the key tax issues relating to the trusts that have arisen under present law.
This new elective tax regime permits Alaska Native settlement trusts to be taxed in a manner different from the normal fashion under Subchapter J of the I.
The author believes the new legislation offers solutions to most of the tax issues that have arisen in recent years concerning Alaska Native settlement trusts, and predicts the new legislation will provide an incentive both for creating more settlement trusts and for contributing more assets to existing trusts.
Part II is an overview of the federal and state non-tax law governing Alaska Native settlement trusts, providing a context in which settlement trusts can be better understood.
The IRS has issued a total of 22 private letter rulings (57) concerning various aspects of the application of the federal tax law to Alaska Native settlement trusts.