Tináa Trust

In Tlingit, “Tináa” means “copper shield.” Just as a shield protects a warrior, the Tináa Trust can now help provide some protection for our Shareholders. Cape Fox Corporation (CFC) Shareholders can place assets into the Trust for the future use and benefit of all.  The Cape Fox Shareholder Tináa Trust was established in 2019.  This Trust benefits our Shareholders and the corporation with tax-related benefits that protect the corporation from financial ups and downs and provides our Shareholders benefits in education, heritage, funerals, burials, and potlatches; and a special benefit to all elders.

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“The Tináa Settlement Trust establishes a long-term Trust for the benefit of all Cape Fox Shareholders.  It is my belief this Trust will create an ongoing, tax-free benefit to Shareholders that is protected from Corporate ups and downs.”

– Clifford Blair, CFC President

Tináa Trust

Tináa Trust

Tináa Trust Advantages

Corporation Tax Advantages:

The funds that CFC puts into the Settlement Trust will also be deductible from its federal taxes.

Shareholder Tax Benefit

Shareholders will not have to pay taxes on their dividends dispersed from a Settlement Trust in the future.

Shareholder Heritage Benefit

The Heritage Benefit, if declared from time to time by the Trustees, is available to all Beneficiaries and is distributed pro-rata based upon the number of Trust Units each Beneficiary holds.

Shareholder Educational Benefit

This benefit is a non-pro-rata benefit that, to the extent the Trustees decide to provide such benefit, is available to all Beneficiaries and their lineal descendants (including adoptees) who satisfy the eligibility requirements.

Shareholder Elder’s Benefit

The Shareholder Elder’s Benefit is a non-pro-rata benefit that, to the extent the Trustees decide to provide such benefit, is available to the Beneficiaries who are original enrollees to CFC and are at least 65 years of age and that satisfy the eligibility requirements.

 

Shareholder Advantages:

Shareholders will experience a number of benefits that promote the health, education, welfare, and economic advantages through distributions of funds from the Settlement Trust.

Shareholder Funeral/Burial/Potlatch Benefit

This benefit is a non-pro-rata benefit that, to the extent the Trustees decide to provide such benefit, is available upon the death of any Beneficiary who satisfies the eligibility requirement.

How To Get A Copy Of The Trust

Contact CFC Shareholder Services to request a copy at shareholderservices@capefoxcorp.com or by calling (907) 225-5163.

 

Q&A

What is a Settlement Trust?

A Settlement Trust is a legal instrument organized under the Alaska Native Claims Settlement Act (ANSCA) and Alaska law to provide various benefits to the Shareholders of a specific Alaska Native Corporation. These benefits promote the health, education, welfare, and long-term economic stability of our company and Shareholders through distributions and tax reductions while helping to preserve our rich customs and heritage.

How many Settlement Trusts exist?

As of December 31, 2018, about 30 Settlement Trusts have been established by other Native Corporations and hold about $350 million in assets.

Are there any limits on the amounts of benefits that may be provided each year?

No. All benefits are at the discretion of the Trustees of the Trust as is the amount of any benefits that may be provided.

Who will be the Trustees of the Trust and how will they be selected?

The Trustees of the Trust will be the incumbent members of the CFC Board of Directors.

How long will the CFC’s Trust last and can the Trust be modified?

The Trust will last until the Beneficiaries and the Trustees jointly take action to terminate or otherwise modify the Trust. Such action can occur at any time after the Trust is established and will require the affirmative vote of 2/3rds of the Trustees and 2/3rds of the Trust Units.

 

Are there any tax rules related to the Trust?

CFC’s Trust will make a special tax election, which permits the Trust to be taxed at rates of 10% on ordinary income such as interest income and 0% on capital gains and dividends. CFC is taxed presently at rates of about 28%. This alone produces a significant tax savings on income earned by the Trust versus income earned by CFC. Shareholders also receive an important tax break by this election, which is that benefits provided by the Trust (including distributions) are normally not taxable to the Shareholder/beneficiaries and do not even have to be reported on their individual tax returns. Benefits provided by CFC (including dividend distributions) are normally fully taxable to CFC’s Shareholders due to CFC’s profitability.

How does a Shareholder receive units in the Trust?

Every CFC Shareholder will automatically own the same number of Trust Units as that Shareholder owns CFC shares. Thus if you own 100 CFC shares, you will own 100 Trust Units in the Trust. If the Shareholder’s CFC’s shares are voting, the Trust Units of that Shareholder will be voting. When CFC shares are transferred, such as through a gift of shares or upon the death of a Shareholder, the same number of Trust Units will automatically be transferred to the same person who receives the CFC shares.