American Indian Probate Reform Act of 2004 (AIPRA)

1. AmericanIndian Probate Reform Act of 2004(AIPRA)

2. Marsha A. GoettingExtension Family Economics Specialist; Department of Agricultural Economics & Economics Montana State University

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

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

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

6. 14 Fact Sheets • Define • Describe • Illustrations

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

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

9. Fractionation • 6 generation family

10. 1stGeneration Original Allottee

11. 2nd Generation Original Allottee 1/3 1/3 1/3

12. 3rd Generation Original Allottee 1/3 1/3 1/3 1/9 1/9 1/9

13. 4th Generation Original Allottee 1/3 1/3 1/3 1/9 1/9 1/9 1/36 1/36 1/36 1/36

14. 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

15. 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 ? ? ?

16. 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

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

18. 1st Generation $1,002 Annual Income

19. 2nd Generation $1,002 Annual Income $334 $334 $334

20. 3th Generation $1,002 Annual Income $334 $334 $334 $111.33 $111.33 $111.33

21. 4th Generation $1,002 Annual Income $334 $334 $334 $111.33 $111.33 $111.33 $27.83 $27.83 $27.83 $27.83

22. 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

23. 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

24. AIPRA controls Trust Property • Trust Lands • Throughout the United States • IIM Accounts • (Individual Indian Money = IIM)

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

26. AIPRA distribution among eligible heirs: • Depends on percentage of undivided interest owned by the person who passed away

27. Do you own: • 5% or more? • Less than 5%?

28. Fact Sheet #4 • Your Individual Trust Interest (ITI) Report: How to read it

29. Where do I get my ITI Report? • Local BIA Office • Realty Department • Lame Deer

30. Where do I get my ITI Report? • BIA Regional Office • Rocky Mountain Region • Billings 406-247-7943

31. Important fact on ITI Report: • Amount of undivided interest owned in each parcel.

32. ITI Report AGGREGATE DECIMAL • Right side, lower middle • Decimal • .0173611111

33. Because AIPRA uses percent Convert Decimal to % • .0173611111 =1.7%

34. .0173661111 = 1.7% Ft Peck .156250000 = 15.6% Lame Deer .0078125000 = 0.8% Blackfeet .114583333 = 11.5% Ft Peck .0078125000 = 0.8% Lame Deer .0260416667 = 2.6% Ft Hall Example: ITI Report

35. Use ITI Report to determine % of ownership • 5% or more? • Less than 5%?

36. Fact Sheet #7 • If your undivided interest in each allotment is: less than 5% • What Happens If You Pass Away Without Writing a Will?

37. Single Heir Rule • Undivided interest of less than 5% • passes to one person in following order…..

38. Single Heir Rule (less than 5% & no will) • First priority: • Oldest surviving eligible child

39. Single Heir Rule (less than 5% & no will) • If no surviving eligible child • Oldest surviving eligible grandchild

40. Single Heir Rule (less than 5% & no will) • If no surviving eligible grandchild • Oldest surviving eligible great- grandchild

41. Single Heir Rule (less than 5% & no will) • If no surviving eligible child, grandchild or great-grandchild • Tribe

42. Single person-- • Never married • Widowed • Divorced • Common Law (less than 5% & no will)

43. Example 1: • Person has no written will • No Spouse • No Children • No Grandchildren • No Great Grandchildren

44. .0173661111 = 1.7% Ft Peck .0156250000 = 1.6% Ft Belknap .0078125000 = 0.8% Blackfeet .0114583333 = 1.1% Ft Peck .0078125000 = 0.8% Lame Deer .0260416667 = 2.6% Ft Hall (Each is less than 5%) ITI Report

45. Single Heir Rule (no will) • Undivided interest of less than 5% passes to: • Tribe with jurisdiction

46. .0173661111 = 1.7% Ft Peck .0156250000 = 1.6% Ft Belknap .0078125000 = 0.8% Blackfeet .0114583333 = 1.1% Ft Peck .0078125000 = 0.8% Lame Deer .0260416667 = 2.6% Ft Hall (Each is less than 5%) Tribe Inherits

47. Example 2: Single, no spouse • Has living Children (less than 5% & no will)

48. Children defined (AIPRA) • Biological • Legally adopted

49. Example 2: Dad passes Survivors: 2 kids DAD Child Age 19 Child Age 29 (less than 5% & no will)

50. .0173661111 = 1.7% Ft Peck .0156250000 = 1.6% Ft Belknap .0078125000 = 0.8% Blackfeet .0114583333 = 1.1% Ft Peck .0078125000 = 0.8% Lame Deer .0260416667 = 2.6% Ft Hall (Each is less than 5%) Dad’s ITI Report