§ 303 Trust Fund for Minors and Legally Incompetent Tribal Members
A. The interests of Minor Tribal Members and Legally Incompetent Tribal Members who are otherwise entitled to receive Per Capita Payments shall, in lieu of the Per Capita Payments being paid directly to such Minor or Legally Incompetent Tribal Member, be deferred into a Trust Fund established pursuant to this Chapter. The Tribal Council shall establish a formal irrevocable legal structure for the Trust Fund, and the Trust assets of such Trust Fund shall be invested in a reasonable and prudent manner which protects the principal and seeks a reasonable return. The Trust may be modeled in part after the substantive tax and grantor trust provisions appearing in Revenue Procedure 2011-56 and POM SI 0112.195.
B. Health, Education and Welfare Distributions on behalf of Minor Tribal Members. Funds held in trust on behalf of a Minor Tribal Member may be available prior to the general distribution date(s) set forth below for the beneficiary’s health, education, and welfare; provided that there is a finding of special need by the Tribal Court. In order to request such funds, the following provisions apply:
1. A written request must be made to the Tribal Court by the beneficiary’s parent or legal guardian detailing the purpose and need for such funds.
2. The parent or legal guardian shall maintain records and account to the Tribal Court and Trust Administrator in sufficient detail to demonstrate that the funds disbursed were expended as required by this Chapter and any other applicable federal law.
3. Any other standards, rules, procedures, and conditions that may be adopted by the Tribal Council consistent with any applicable federal law shall be met.
4. The Tribal Court shall have final discretion for the approval of early distributions hereunder.
C. Health Education and Welfare Distributions on behalf of Legally Incompetent Tribal Members. Funds held in Trust on behalf of Legally Incompetent Tribal Members may be available for a beneficiary’s health, education, welfare, and to provide dignity, purpose, and enjoyment for the beneficiary through a petition of a guardian to provide for the needs of the Legally Incompetent Tribal Member, and a finding of need by the Tribal Court. In order to request such funds the following provisions apply:
1. A written request must be made to the Tribal Court by the beneficiary’s parent or legal guardian detailing the purpose and need for such funds. Acceptable purposes include, but are not limited to:
(a) Supplemental Food and Shelter;
(b) Transportation;
(c) Medical Care;
(d) Insurance;
(e) Education and Training;
(f) Recreation and Leisure;
(g) Other expenses to provide dignity, purpose and enjoyment for the Legally Incompetent Tribal Member.
2. The parent or legal guardian shall maintain records and account to the Tribal Court and Trust Administrator in sufficient detail to demonstrate that the funds disbursed were expended as required by this Chapter and any other applicable federal law.
3. Any other standards, rules, procedures, and conditions that may be adopted by the Tribal Council consistent with any applicable federal law shall be met. The Tribal Court shall have final discretion for the approval of early distributions hereunder.
D. Regular Distribution of Trust Assets to Minor and Legally Incompetent Tribal Member Beneficiaries.
1. Standard Distribution Date for Minor Beneficiaries (Age Twenty-Five (25)). Unless deferred, a Minor Beneficiary shall receive any Trust Fund balance not previously distributed as of the standard trust distribution date on or following his or her twenty-fifth (25th) birthday.
2. Standard Distribution Date for Legally Incompetent Beneficiaries. Unless deferred, a Legally Incompetent Beneficiary shall receive any Trust Fund balance not previously distributed as of the standard trust distribution date on or following the Trustees’ receipt of an order, from a court of competent jurisdiction, restoring the Member to competency.
3. Early Distribution Date(s) for Minor Beneficiaries (Minimum Age Eighteen (18)). Unless deferred, a Minor Beneficiary will qualify for early distribution of the then balance of his or her Trust Fund assets; provided that all of the following criteria are met:
(a) Attaining at least the age of eighteen (18) years;
(b) Submitting proof of a high school diploma, GED, or similar equivalent to the Tribal Administration; and
(c) For Tribal Members born after January 1, 2003, the intended Tribal Member Beneficiary has completed a financial literacy education course that is approved by the Tribal Council and has submitted proof of completion to the Tribal Administration and Trust Administrator.
4. Timing of Distribution. The timing of trust distributions under this Subsection E. may be deferred to the next standard trust distribution date on or following acceptance of proof of satisfaction of all distribution criteria. The Tribal Court or Tribal Council shall have the discretion to waive criteria (b) and/or (c) for Members with a demonstrated learning disability or other good cause.
E. Fraud, Deceit, or Malfeasance with Regard to Trust Assets. If access to the Trust assets is proven to have been obtained through fraud, deceit, or malfeasance by the beneficiary, parent, guardian, or other individual, all parties found responsible by a court of competent jurisdiction shall be subject to repayment of the entire amount obtained, including interest and penalties, and shall be subject to criminal and any other penalties available by law.
[Legislative History: Enacted by Resolution No. 2019-69, 6/3/2019; Technical Amendment by Resolution No, 2019-112, 8/9/2019]