754-9          LAND, sTOCK, AND PAYMENTS MADE TO NATIVE AMERICANS

The Federal Alaska Native Claims Settlement Act (ANCSA) (Public Law 93-203) conveyed certain real and personal property rights and settlements to most Alaskan Native (those of one-quarter or more Native blood, i.e., Eskimo, Aleut, Athabascan, Tlingit, or Haida). Under ANCSAAlaska Native Claims Settlement Act, Native people, children as well as adults, may have received stock in Native corporations, land, and occasional cash payments of varying amounts.

754-9 A.      ALASKA NATIVE CLAIMS SETTLEMENT ACT (ANCSA) ASSETS

The Alaska Native Claims Settlement Act (ANCSA) excludes the following items from the resources of an Alaska Native, or from the resources of a descendant of an Alaska Native:

1. Alaska Native Fund Distributions

Distributions from the original Alaska Native Fund are excluded from resources regardless of the amount distributed.

2. Stock

Any stock issued or distributed by an ANCSAAlaska Native Claims Settlement Act corporation (including stock issued as a dividend or distribution on stock) is excluded from resources.

3. Partnership Interests

A partnership interest received from an ANCSAAlaska Native Claims Settlement Act corporation is excluded from resources. However, income received as a result of a partnership interest is treated as a cash distribution. (See #6 below.)

4. Land

Any land or any interest in land received from an ANCSAAlaska Native Claims Settlement Act corporation (including any land or any interest in land received as a dividend or distribution on stock) is excluded from resources. This includes any land or interest in land inherited by a descendant. Any house or related structure (as described in MS 753-1) that is permanently attached to the land is also exempt, even if it is not used as a home. If such a house is rented, the rental income will count for Temporary Assistance purposes.

5. Interest in a Settlement Trust

Any interest in a settlement trust received from an ANCSAAlaska Native Claims Settlement Act corporation is excluded from resources.

6. Cash Distributions

For the purpose of this exclusion, cash distributions from ANCSAAlaska Native Claims Settlement Act corporations are distributions that are made to a class of individuals, such as all shareholders, or all elders. Cash distributions do not include cash payments that are made to individuals or households for a specific purpose such as wages, a door prize, or a general assistance payment from the corporation.

This exclusion does not apply to any funds received as a result of the investment or deposit of an individual's ANCSAAlaska Native Claims Settlement Act payments after they are distributed to the shareholders.

1. Any cash distributions (including cash dividends on stock) received from ANCSAAlaska Native Claims Settlement Act corporations are totally excluded if they were received before February 3, 1988.
2. For cash distributions received February 3, 1988 or later, the total of all distributions received from ANCSAAlaska Native Claims Settlement Act corporations in a calendar year are excluded up to $2,000 per individual. This means that an individual can accrue up to $2,000 per calendar year from all ANCSAAlaska Native Claims Settlement Act distributions received that year and not have the money counted as a resource for that year or any subsequent year. For example, an individual who keeps at least $2,000 in cash distributions from ANCSAAlaska Native Claims Settlement Act corporations each year for 4 consecutive years may have a total of $8,000 excluded from resources.

If the individual keeps more than $2,000 from any year's distribution, the amount exceeding the $2,000 exclusion for that year is a countable resource. If the individual keeps less than $2,000 from any year's distributions, only the amount retained from that year's distribution qualifies for that year's exclusion.

754-9 B.      VERIFICATION

ANCSAAlaska Native Claims Settlement Act monies on deposit must be identifiable in order to be exempt. A separate account is the preferred method of maintaining identifiability, but is not mandatory. Unless questionable, verification of the source of funds represented as retained ANCSAAlaska Native Claims Settlement Act monies is unnecessary.

Verification that stock, land, or monies on deposit is from ANCSAAlaska Native Claims Settlement Act need not be done unless there is good reason to doubt the client's statement.

754-9 C.      NATIVE RESTRICTED LAND

Certain Native peoples may hold land either individually within a rural area or community, or jointly with their tribe or others in their community. These lands are classified as Native Restricted Deeds, meaning they cannot be sold, transferred, or otherwise disposed of without permission from other individuals, the land-holder's tribe, or the Bureau of Indian Affairs. Any house or related structure (as described in ATAPAlaska Temporary Assistance Program MS 753-1) that is permanently attached to restricted deed land is also exempt, even if it is not used as a home. If such a house is rented, the rental income will count for ATAPAlaska Temporary Assistance Program purposes.

Note:

Verification of Native Restricted Deed status is required. In Alaska, the Bureau of Indian Affairs (BIA) is the agency that keeps records of Native Restricted Deeds. Verification may also be available from deeds, tax assessor's records, recorder's office, realtors or real estate agents, mortgage or escrow documents, or signed surveyors records or reports.

754-9 D.      PER CAPITA PAYMENTS

Funds held in trust by the Secretary of the Interior for an Indian tribe and distributed on a per capita basis to members of that tribe are excluded as resources. These distributions may be made by the Secretary of the Interior or by the tribe itself. In Alaska, the only reported distribution of this type has been from the Metlakatla Indian Community.

754-9 E.      INDIVIDUAL INDIAN MONEY ACCOUNTS

Funds deposited or held in an Individual Indian Money (IIM) account are excluded. However, once funds are removed from an IIMIndividual Indian Money account, they become a countable resource.

IIMIndividual Indian Money accounts primarily contain money collected by the federal government from farming and grazing leases, timber sales, mining, oil and gas production, and other activities on trust land, as well as certain per capita distributions. The funds in IIMIndividual Indian Money accounts are held in trust by the federal government for the benefit of individual Indians.

754-9 F.      DINGLE ACT LANDS

Certain Alaska Native Americans who served in the Armed Forces during the period August 5, 1964 and December 31, 1971 and haven't received a Native Allotment may receive up to 160 acres in Alaska from the Dingell Act. This land is an exempt resource.