UIC Shareholder Trust Information

UIC SHAREHOLDER SETTLEMENT TRUST OVERVIEW

WHAT IS THE PURPOSE OF A SHAREHOLDER SETTLEMENT TRUST?

  • Settlement trusts are established to provide permanent, long-term benefits to shareholders, Alaska Natives, and their descendants to promote their health, education, welfare, and cultural heritage.
  • Trust assets can be used only for these purposes and cannot be used for any other ordinary business purpose. Assets in a settlement trust are also protected from creditors. 

WILL ESTABLISHING A SETTLEMENT TRUST AFFECT MY DIVIDEND?

  • Shareholders will continue to receive cash distributions, only now instead of receiving “dividends” directly from UIC, shareholders will receive cash payments from the Settlement Trust.
  • Also, instead of paying taxes on “dividends,” shareholders will now receive their cash distributions tax-free from the Settlement Trust.

WHAT ARE THE TAX ADVANTAGES OF ESTABLISHING A SETTLEMENT TRUST?

  • Shareholders save on taxes.
    • Right now, shareholders pay income taxes on dividend distributions, but payments to shareholders made from the Settlement Trust will be tax-free.
  • UIC saves on taxes.
    • UIC’s contributions to the Settlement Trust to fund shareholder payments will be tax-deductible to the company, resulting in significant tax savings to UIC.
  • The Settlement Trust saves on taxes.
    • Income earned by a Settlement Trust is taxed at lower rates than what UIC currently must pay on its income.

DOES THE UIC BOARD OF DIRECTORS SUPPORT ESTABLISHING A SETTLEMENT TRUST?

  • For all the above reasons, all of the members of the UIC Board of Directors strongly recommend that shareholders vote YES to establish the Settlement Trust so that the corporation and shareholders can begin enjoying its benefits.

Read the UIC Shareholder Trust Agreement here for more information.