American Indian Probate Reform Act of 2004 (AIPRA)

1. AmericanIndian Probate Reform Act of 2004(AIPRA)

2. Floyd H. Azure IIMontana State University Extension Undergraduate Student AssistantMarsha A. GoettingMontana State University Extension Family Economics Specialist; Department of Agricultural Economics & Economics

3. Purpose of AIPRA • To Prevent Further Fractionation of Trust Lands. • To Encourage Consolidation of Indian Land Ownership.

4. AIPRA: Probate Sections • Effective for persons who pass away on or after June 20, 2006

5. AIPRA • State law no longer applies to Trust Property when a person passes away without a will.

6. 14 Fact Sheets • Highlight • Describe • Illustrate

7. Fact Sheet #1 • What Is AIPRA & How Does ItAffect You • Summary of each of the 14 fact sheets.

8. Fact Sheet #2 • Fractionation:Inherited Undivided Interests

9. Description: • Brief history • What isFractionation? • How does Fractionation affect us?

10. Definition • Fractionation • An increasing number of owners for a land parcel with each passing generation

11. Brief History of Fractionation • General Allotment Act of 1887 • Allotted land to individual Indians. • Established concept of “the individual” in traditional Native American life (“My land”).

12. Fractionation • 6 generation family

13. 1stGeneration Original Allottee

14. 2nd Generation Original Allottee 1/3 1/3 1/3

15. 3rd Generation Original Allottee 1/3 1/3 1/3 1/9 1/9 1/9

16. 4th Generation Original Allottee 1/3 1/3 1/3 1/9 1/9 1/9 1/36 1/36 1/36 1/36

17. 5th Generation Original Allottee 1/3 1/3 1/3 1/9 1/9 1/9 1/36 1/36 1/36 1/36 1/144 1/144 1/144 1/144

18. 6th Generation Original Allottee 1/3 1/3 1/3 1/9 1/9 1/9 1/36 1/36 1/36 1/36 1/144 1/144 1/144 1/144 ? ? ?

19. 6thGeneration Original Allottee 1/3 1/3 1/3 1/9 1/9 1/9 1/36 1/36 1/36 1/36 1/144 1/144 1/144 1/144 1/432 1/432 1/432

20. Fractionation by $$$$ • Example • Lease Dollar Amounts

21. 1st Generation $1,002 Annual Income

22. 2nd Generation $1,002 Annual Income $334 $334 $334

23. 3th Generation $1,002 Annual Income $334 $334 $334 $111.33 $111.33 $111.33

24. 4th Generation $1,002 Annual Income $334 $334 $334 $111.33 $111.33 $111.33 $27.83 $27.83 $27.83 $27.83

25. 5th Generation $1,002 Annual Income $334 $334 $334 $111.33 $111.33 $111.33 $27.83 $27.83 $27.83 $27.83 $6.96 $6.96 $6.96 $6.96

26. 6th Generation $1,002 Annual Income $334 $334 $334 $111.33 $111.33 $111.33 $27.83 $27.83 $27.83 $27.83 $6.96 $6.96 $6.96 $6.96 $2.32 $2.32 $2.32

27. As of 2006, the average trust allotment has….. 17.4 owners.

28. Or Even Worse…. • Some shares are as small as 1 9,000,000 of a parcel. • That’s equivalent to 1.74 square feet!

29. Summary: • Fractionation: • Increasing number of owners with each passing generation • Each owner has an undivided interest in the entire parcel

30. More Information • Fact Sheet #2 • Fractionation: Inherited Undivided Interest

31. Fact Sheet #3How is Reservation Land Owned by individuals? • Trust Status? • Fee Status?

32. AIPRA Regulates: • Trust Property • Unless the tribe has a probate code

33. Trust Property • Trust Lands • Throughout the United States (except Alaska) • IIM Accounts • (Individual Indian Money = IIM)

34. Fee Status • Land passes according to law of state where land is located.

35. Montana • For fee land on our reservations: • Montana law applies if you pass away without a will.

36. Personal Property • AIPRA does not affect: • Checking Accounts • Saving Accounts • Vehicles • State of residence or tribal probate laws apply

37. Fort Peck Probate Code • Regulates titled personal property such as: • Checking Accounts • Saving Accounts • Vehicles

38. More Information • Fact Sheet #3 • How is reservation land owned by individuals

39. Who is able to receive the land in trust status? • Eligible heirs • Interests owned

40. Fact Sheet #5 • Who is Eligible to Inherit Your Trust Land & Retain Trust Status?

41. AIPRA Requirement • Interests must pass to: • Eligible heirstoretain trust status. • Who are eligible heirs?

42. Eligible heirs(Defined under AIPRA) • Children • Grandchildren • Great grandchildren • Brothers & sisters • Half brothers & sisters by blood • Parents, AND…

43. Eligible heirs must also be: • “Indian ”; or • Lineal descendants within 2 degrees of blood relationship of an “Indian”.

44. Degrees of Relationship Chart Permission from: Attorney General of Texas, Greg Abbott

45. Who is an “Indian”? • AIPRA defines “Indian” 5 ways • An individual only has to meet 1 definition.

46. “Indian” - AIPRA • Member of a federally recognized Indian tribe.

47. “Indian” - AIPRA • Eligible to become member of a federally recognized Indian tribe.

48. “Indian” - AIPRA • Owner of trust or restricted land on or before October 27, 2004.

49. “Indian” - AIPRA • Meets the definition of Indian under the Indian Reorganization Act of 1934 (IRA).

50. “IRA definition” • Is enrolled in an IRA Tribe • Is an aggregate of ½ Indian blood • Is a descendent of an IRA tribal member who was living on a reservation in 1934