Ounalashka Corp - The Eider Pointer Newsletter_Feb2019_11 web | Page 5

OC is proud to support
local students at Eagle’s
View Elementary
Achigaalux, and to
contribute to ensuring
Unangan culture thrives
within the next generation
of shareholders and
descendants.
Aang Unangan,
Since the shareholders of the Ounalashka
Corporation voted to create and fund the
Ounalashka Settlement Trust (OST) things have
quickly developed, and because of the 2017 Tax
Act, making distributions to the Trust beneficiaries
has become feasible much earlier than planned.
Let’s look back at how the last couple of years have
gone and how we’ve arrived where we are today.
The OST’s formation was approved by OC
shareholders at the June 2017 shareholders’ annual
meeting. A Settlement Trust must be sponsored
by an ANSCA Corporation (like OC) and enjoys
favorable tax rates for its earnings. Distributions
to the Trust’s beneficiaries are not taxable.
The 2017 Tax Act added the advantage of OC’s
contributions being deductible to the corporation.
The Trust is a separate, but related legal entity
from OC. The Trust is governed by nine Trustees –
who are also OC’s Board of Directors.
These changes in tax law have allowed OC to make
contributions of $20.7 million over the last two
years. These contributions have been used to build
the Trust balance, pay taxes on Trust contributions,
and make beneficiary distributions.
Beginning in April 2018, the Trust began making
distributions to beneficiaries: $10/unit – April;
$14/unit – July; $18/unit – October; and
$36/unit – January 2019. These distributions are
not taxable income to you. The OST will not issue
a 1099DIV and these amounts do not need to be
reported on your tax return.
Trustees are taking
advantage of current tax
laws to build Trust assets
and provide beneficiaries
with distributions. It is
important to emphasize
that distributions are not
always guaranteed and
are dependent on OC’s
contributions and OST
investment earnings.
Trust assets are invested
in a diversified securities
portfolio and its value will fluctuate as markets rise
and fall. Alaska Permanent Capital Management
is the Trust’s investment advisor and has advised
current holdings to provide investment income
and value growth over the long term.
OST Trustees dedicate their time to maintaining
the Trust’s investment policy in order to maximize
returns, protect Trust assets, and make consistent
distributions to its beneficiaries. Because the
legal and tax environments of ANCSA Settlement
Trusts are still developing, there might be
additional benefits that Trusts such as the OST
can offer to its beneficiaries in the future. The
OST trustees meet regularly with its management
and professional consultants in order to ensure
compliance with the Trust’s policies and regulatory
requirements. We are here to protect your
interests, and those of future generations.
Qagaasakung,
Vincent M. Tutiakoff, Sr.
OC’S FEBRUARY 2019 NEWSLETTER 4