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American Indian Probate Reform Act of 2004 (AIPRA)

A comprehensive guide to the American Indian Probate Reform Act of 2004 (AIPRA) that aims to prevent the further fractionation of trust lands and encourage consolidation of Indian land ownership.

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American Indian Probate Reform Act of 2004 (AIPRA)

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  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

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