By SCOTT MCKIE B.P.
One Feather Asst. Editor
CHEROKEE, N.C. – It has been nine years since Dinilawigi (Tribal Council) last amended the distribution plan for the Minors Fund for the Eastern Band of Cherokee Indians (EBCI). During their regular session on Thursday, Dec. 5, Dinilawigi passed Ord. No. 334 (2024) unanimously that changes the distribution plan from three staggered distributions to five.
The ordinance, which amends Cherokee Code Section 16C-6, was submitted by Brandi Claxton, EBCI Budget & Finance director.
James Burns, EBCI Investment Committee, said during Thursday’s discussion, “What we’re wanting to do here is give minors access to their money a little bit sooner as well as reducing their overall tax burden…this change would reduce their tax burden by over $25,000 for that five-year term.”
The distribution plan was last changed on Oct. 22, 2015 with the passage of Ord. No. 38 (2015), submitted by then-Ugvwiyuhi (Principal Chief) Patrick Lambert and the Junaluska Leadership Council. That legislation approved the three distribution plan at ages 18, 21, and 25 used from that point until the passage of this new legislation.
The legislation (Ord. No. 334 – 2024) passed on Dec. 5 states, “The EBCI Investment Committee and the EBCI Office of Budget & Finance have determined that a new schedule of five staggered distributions, at ages 18, 20, 22, 24, and 25 will better meet the needs of Minors Fund participants and will decrease the tax burden participants experience with the current distribution schedule.”
According to the ordinance, the distributions shall be in the following amounts:
- At age 18, “the first distribution shall be in an amount which is the lesser of $50,000 or one-fifth the amount of the total amount”
- At age 20, “the second distribution shall be in an amount which is the lesser of $50,000 or one-fourth the amount of the total amount remaining after the first distribution”
- At age 22, “the third distribution shall be in an amount which is the lesser of $50,000 or one-third the amount of the total account balance”
- At age 24, “the fourth distribution shall be in an amount which is the lesser of $50,000 or one-half the amount of the total account balance”
- At age 25, “the fifth distribution shall be in an amount totaling the entire remaining amount”
One amendment was made to the legislation prior to passage stating that the new distribution plan “shall be implemented and effective Jan. 1, 2025, this applies to all applications received after 1/1/2025”.
Ord. No. 334 was ratified by Ugvwiyuhi (Principal Chief) Michell Hicks on Tuesday, Dec. 10.
