SB 228: "An Act relating to the disposition of Native corporation stock upon a stockholder's death."
00 SENATE BILL NO. 228 01 "An Act relating to the disposition of Native corporation stock upon a stockholder's 02 death." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 13.12.102(a) is amended to read: 05 (a) Except as provided in AS 13.12.115 [(b) OF THIS SECTION], the 06 intestate share of a decedent's surviving spouse is 07 (1) the entire intestate estate if 08 (A) no descendant or parent of the decedent survives the 09 decedent; or 10 (B) all of the decedent's surviving descendants are also 11 descendants of the surviving spouse and there is no other descendant of the 12 surviving spouse who survives the decedent; 13 (2) the first $200,000, plus three-fourths of any balance of the intestate 14 estate, if no descendant of the decedent survives the decedent, but a parent of the
01 decedent survives the decedent; 02 (3) the first $150,000, plus one-half of any balance of the intestate 03 estate, if all of the decedent's surviving descendants are also descendants of the 04 surviving spouse and the surviving spouse has one or more surviving descendants who 05 are not descendants of the decedent; 06 (4) the first $100,000, plus one-half of any balance of the intestate 07 estate, if one or more of the decedent's surviving descendants are not descendants of 08 the surviving spouse. 09 * Sec. 2. AS 13.12.103 is amended to read: 10 Sec. 13.12.103. Share of heirs other than surviving spouse. Except as 11 provided in AS 13.12.115, a [A] part of the intestate estate not passing to the 12 decedent's surviving spouse under AS 13.12.102, or the entire intestate estate if there 13 is no surviving spouse, passes in the following order to the individuals designated 14 below who survive the decedent: 15 (1) to the decedent's descendants by representation; 16 (2) if there is no surviving descendant, to the decedent's parents 17 equally if both survive, or to the surviving parent; 18 (3) if there is no surviving descendant or parent, to the descendants of 19 the decedent's parents or either of them by representation; 20 (4) if there is no surviving descendant, parent, or descendant of a 21 parent, but the decedent is survived by one or more grandparents or descendants of 22 grandparents, half of the estate passes to the decedent's paternal grandparents equally 23 if both survive, or to the surviving paternal grandparent, or to the descendants of the 24 decedent's paternal grandparents or either of them if both are deceased, the 25 descendants taking by representation; and the other half passes to the decedent's 26 maternal relatives in the same manner; but if there is no surviving grandparent or 27 descendant of a grandparent on either the paternal or the maternal side, the entire 28 estate passes to the decedent's relatives on the other side in the same manner as the 29 half. 30 * Sec. 3. AS 13.12.106(a) is amended to read: 31 (a) If, under AS 13.12.103(1) or 13.12.115, all or part of a decedent's intestate
01 estate passes by representation to the decedent's descendants, the estate or part of the 02 estate passing is divided into as many equal shares as there are 03 (1) surviving descendants in the generation nearest to the decedent that 04 contains one or more surviving descendants; and 05 (2) deceased descendants in the same generation who left surviving 06 descendants, if any. 07 * Sec. 4. AS 13.12.106(c) is amended to read: 08 (c) If, under AS 13.12.103(3) or (4) or 13.12.115, all or part of a decedent's 09 intestate estate passes by representation to the descendants of the decedent's deceased 10 parents or either of them or to the descendants of the decedent's deceased paternal or 11 maternal grandparents or either of them, the estate or part of the estate passing is 12 divided into as many equal shares as there are 13 (1) surviving descendants in the generation nearest the deceased 14 parents or either of them, or the deceased grandparents or either of them, that contains 15 one or more surviving descendants; and 16 (2) deceased descendants in the same generation who left surviving 17 descendants, if any. 18 * Sec. 5. AS 13.12 is amended by adding a new section to article 1 to read: 19 Sec. 13.12.115. Intestate succession of Native corporation stock. (a) If a 20 decedent's estate includes settlement common stock or other inalienable stock in a 21 corporation organized under the laws of the state under 43 U.S.C. 1601 et seq. (Alaska 22 Native Claims Settlement Act) and the stock does not pass by the testamentary 23 disposition clause on the stock certificate, by a form authorized by AS 13.16.705(b), 24 or by will, then, notwithstanding any other provision of AS 13.06 - AS 13.36 to the 25 contrary, the stock passes in the following order to the persons designated below who 26 survive the decedent: 27 (1) to the children of the decedent in equal shares; 28 (2) if the decedent is not survived by one or more children, to the 29 following individuals in the following order: 30 (A) the parents of the decedent in equal shares; 31 (B) the grandparents of the decedent in equal shares;
01 (C) the brothers and sisters of the decedent in equal shares; 02 (D) the children of the brothers and sisters of the decedent in 03 equal shares; 04 (3) if the stock does not pass to an individual or individuals described 05 in (1) or (2) of this subsection, to the following individuals in the following order: 06 (A) the surviving spouse of the decedent; 07 (B) the surviving descendants of the decedent in equal shares 08 by representation; 09 (C) the surviving descendants of the decedent's parents in equal 10 shares by representation; 11 (4) if the stock does not pass to an individual or individuals described 12 in (1) - (3) of this subsection, one-half of the stock to the descendants of the decedent's 13 paternal grandparents, the descendants taking by representation, and one-half of the 14 stock to the descendants of the decedent's maternal grandparents, the descendants 15 taking by representation; 16 (5) if the stock does not pass to an individual or individuals described 17 in (1) - (4) of this subsection, to all other relatives of the decedent in equal shares; 18 (6) if the stock does not pass to an individual or individuals described 19 in (1) - (5) of this subsection, to the corporation that issued the stock. 20 (b) In this section, "children" means natural children or adopted children. 21 * Sec. 6. AS 13.16.705(a) is amended to read: 22 (a) The settlement common stock or other inalienable stock in a corporation 23 organized under the laws of Alaska under 43 U.S.C. 1601 et seq. (Alaska Native 24 Claims Settlement Act) is not subject to probate and [NOR SHALL] its value may 25 not be considered in determining the value of an estate or allowance under this title. 26 Upon the death of the holder, if the stock does not pass by the testamentary 27 disposition clause on the stock certificate or by the form authorized under (b) of this 28 section, properly executed, it passes by will or as provided in AS 13.12.115 29 [INTESTATE SUCCESSION]. In such a case, the determination of the person entitled 30 to the stock shall be made by the corporation that initially issued the stock or its 31 designated agent. The determination shall be made on the basis of an affidavit,
01 furnished to the corporation that initially issued the stock, or its agent, showing the 02 right of the person entitled to the stock to receive it. The affidavit, accepted in good 03 faith by the corporation or its agent, has the same effect as an affidavit under 04 AS 13.16.685, and the person entitled to the stock, if the affidavit is not accepted, has 05 the remedy set out in AS 13.16.685. In case of dispute as to the person entitled to 06 receive the stock, a person claiming ownership may bring an independent action in the 07 superior court. 08 * Sec. 7. AS 13.16.705(d) is amended to read: 09 (d) If a deceased shareholder has failed to dispose of the stock by will and has 10 no heirs under AS 13.12.115 [THE APPLICABLE LAWS OF INTESTACY], the 11 shares escheat to the corporation. 12 * Sec. 8. AS 13.46.085(e) is amended to read: 13 (e) Notwithstanding AS 13.46.190, the stock shall be transferred to the minor 14 when the minor reaches 18 years of age, or to the minor's heirs under AS 13.12.115 if 15 the minor dies before reaching 18 years of age. 16 * Sec. 9. AS 13.12.102(b) and AS 13.16.705(d) are repealed. 17 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 APPLICABILITY. This Act applies to the stock owned by an individual who dies on 20 or after the effective date of this Act.