Bequeathing ANCSA Stock and Native Corporation Shares in an Alaska Last Will
Under the 43 U.S.C. § 1601 et seq. (ANCSA), you can bequeath your shares to any beneficiary in a will. However, under 43 U.S.C. § 1606(h)(2)(C), shares inherited by non-Native beneficiaries automatically become non-voting stock while retaining full rights to dividends.
For many Alaska Natives, shares in a regional or village corporation represent much more than just a financial asset; they are a direct tie to cultural heritage and ancestral lands. The 43 U.S.C. § 1601 et seq. (ANCSA) created a unique corporate structure, meaning these shares do not operate like traditional stocks traded on Wall Street. While you cannot sell them and lifetime gifts are strictly limited to Native lineage, you have broad testamentary freedom to leave them to anyone in your will (though non-Native heirs receive non-voting shares). Understanding how to properly bequeath ANCSA stock and Native corporation shares ensures your legacy remains protected and within your family.
The Unique Rules of ANCSA Stock in Your Last Will
Governed heavily by federal guidelines like 43 U.S.C. § 1606(h) and local Alaska statutes, the transfer of Native corporation stock upon death is strictly regulated. Whether you hold shares in Doyon, Sealaska, CIRI, or a local village corporation, you must draft your Last Will and Testament with precise attention to these regulations to avoid unintended consequences.
Identifying Eligible Native Descendants
Under federal law and Alaska Stat. § 13.16.705, you have the testamentary freedom to leave your ANCSA shares to anyone you choose in your will, including Native descendants, non-Native family members, friends, or charities. Unlike lifetime gifts under 43 U.S.C. § 1606(h)(1)(C)-which are strictly limited to Native lineage-testamentary inheritances under 43 U.S.C. § 1606(h)(2) cannot be blocked by the corporation. However, under 43 U.S.C. § 1606(h)(2)(C), shares inherited by a non-Native beneficiary automatically become non-voting stock. While non-Native heirs cannot vote in board elections or on corporate proxy issues, they retain complete legal ownership and the vital right to receive all corporate dividends and settlement trust distributions.
Dealing with Fractional Shares vs. Whole Shares
When drafting your will, you must decide how to divide your stock. Unlike money, which is easily split, dividing 100 shares among three children results in fractional shares (33.33 shares each). Some regional and village corporations have strict policies against issuing fractional shares because it complicates voting rights and dividend distributions. To prevent administrative headaches, many shareholders choose to designate whole shares (e.g., 34 shares to the eldest, 33 to the others) or leave the entire block of stock to a single heir with instructions to share the dividend income.
What Happens If You Fail to Mention ANCSA Stock?
A common mistake is writing a general will that says, "I leave all my property to my best friend." Because ANCSA stock has strict inheritance rules, a general "catch-all" phrase may not legally cover your Native shares. If your will fails to specifically mention your ANCSA stock, the shares will pass according to Alaska's intestate succession laws as applied to Native stock. This often means the shares are divided equally among your surviving children. If you have many children and grandchildren, this can quickly dilute the shares into tiny fractions, weakening your family's voting power within the corporation.
Navigating Regional vs. Village Corporation Rules
Alaska has 12 regional corporations and over 200 village corporations. The rules for transferring stock can vary slightly between them. For example, the Sealaska Corporation, Juneau might have different administrative requirements for stock transfers than a smaller village entity like the Ounalashka Corporation, Unalaska. It is absolutely vital that your will identifies the exact name of the corporation and clearly states your intentions for both your regional and village shares.
Step-by-Step Process to Update Your Will
Taking proactive steps ensures your shares transfer smoothly to the next generation without bureaucratic delays.
- Step 1: Locate Your Stock Certificates. Determine exactly how many shares you own and verify the exact legal name of the Regional and/or Village Corporation.
- Step 2: Check Corporation Specifics. Contact your corporation's shareholder relations department to ask about their specific policies on fractional shares and non-Native spouses.
- Step 3: Complete a Testamentary Disposition. Many corporations offer a specific Testamentary Disposition form (often called a Stock Will) under Alaska Stat. § 13.16.705(b). This acts as a specialized mini-will solely for your shares. If you use this form, it must be properly witnessed and notarized.
- Step 4: Draft a Comprehensive Will. If you have other assets (a house, boats, bank accounts), incorporate the specific language regarding your ANCSA stock into your primary Last Will and Testament to keep all your wishes unified in one legal document.
How Much Does an Estate Lawyer Cost?
Hiring a legal professional to ensure your Native shares are handled correctly is a wise investment. In Alaska, a simple will consultation ranges from $200 to $400. Having a lawyer draft a comprehensive will that specifically addresses ANCSA stock, fractional shares, and other assets typically costs between $800 and $2,000 depending on the complexity of your estate.
ANCSA Stock Transfer Scenarios
| Beneficiary Type | Transferability of Shares | Voting Rights Status |
|---|---|---|
| Native Child or Grandchild | Fully Transferable via Will | Retains full voting rights |
| Non-Native Spouse | Fully Transferable via Will | Converts to non-voting stock (retains dividends) |
| Non-Native Friend / Charity | Fully Transferable via Will | Converts to non-voting stock (retains dividends) |
Frequently Asked Questions (FAQ)
Can I gift my ANCSA shares while I am still alive?
Yes, under specific circumstances, you can execute an inter vivos gift (a gift during your lifetime) of your ANCSA stock to eligible Native descendants, such as your children or siblings, but you must complete the specific paperwork required by your corporation.
Does a Testamentary Disposition Form override my Will?
Under Alaska Stat. § 13.16.705(b), a valid Testamentary Disposition filed with the corporation controls the stock unless you execute a later formal will that makes a specific disposition of those exact Native corporation shares. A subsequent general will that merely leaves "all my property" to someone will not override a previously filed stock will.
Are inherited ANCSA shares taxed?
The transfer of the shares themselves upon death is generally not subject to federal income tax for the recipient, though subsequent dividends paid out to the new shareholder will be taxable income.
What happens to my shares if I have no living relatives?
If you die without any eligible heirs and no valid will directing the shares, the stock may ultimately escheat (revert) back to the issuing Native corporation.
Your Native heritage is irreplaceable, and your ANCSA shares should be protected with the utmost care. To ensure your will complies with federal and state regulations, browse our directory to find a skilled estate planning lawyer in the United States who understands Alaska Native law.
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