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Planning for the Passing of Native American Lands to Avoid Further Fractionation

Planning for the Passing of Native American Lands to Avoid Further Fractionation. Risk Management Agency. Community Outreach and Assistance Partnership Program. Marsha Goetting MSU Extension Family Economics Specialist Kristin Ruppel MSU Native American Studies Dept.

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Planning for the Passing of Native American Lands to Avoid Further Fractionation

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  1. Planning for the Passing of Native American Lands to Avoid Further Fractionation

  2. Risk Management Agency Community Outreach and Assistance Partnership Program

  3. Marsha GoettingMSU Extension Family Economics Specialist Kristin RuppelMSU Native American Studies Dept. James B. JohnsonMSU Emeritus Faculty Keri Hayes MSU Extension Publications Assistant Project Facilitators

  4. Verna BilledeauxMSU Blackfeet Reservation Extension Agent Tamara BirdsbillBlackfeet MSU Extension Student Assistant Blackfeet, MT

  5. Don AddyMSU Fort Belknap Reservation Extension Agent Tony Little OwlFort Belknap MSU Extension Student Assistant Fort Belknap, MT

  6. Carrie Sue ArchdaleFort Peck Community College Floyd Azure IIFort Peck MSU Extension Student Assistant Fort Peck, MT

  7. Marilyn BischoffUniversity of Idaho-Boise Center Extension Family Economics Specialist Danielle GunnUniversity of Idaho Fort Hall Extension Agent Carol PabacaroFort HallUniversity of Idaho Extension Student Assistant Fort Hall, Idaho

  8. Web site for PowerPoint slideswww.montana.edu/indianland

  9. AmericanIndian Probate Reform Act of 2004(AIPRA)

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

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

  12. 14 Fact Sheets • Highlight • Describe • Illustrate

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

  14. Fractionation • 6 generation family

  15. 1stGeneration Original Allottee

  16. 2nd Generation Original Allottee 1/3 1/3 1/3

  17. 3rd Generation Original Allottee 1/3 1/3 1/3 1/9 1/9 1/9

  18. 4th Generation Original Allottee 1/3 1/3 1/3 1/9 1/9 1/9 1/36 1/36 1/36 1/36

  19. 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

  20. 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 ? ? ?

  21. 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

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

  23. 1st Generation $1,002 Annual Income

  24. 2nd Generation $1,002 Annual Income $334 $334 $334

  25. 3th Generation $1,002 Annual Income $334 $334 $334 $111.33 $111.33 $111.33

  26. 4th Generation $1,002 Annual Income $334 $334 $334 $111.33 $111.33 $111.33 $27.83 $27.83 $27.83 $27.83

  27. 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

  28. 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

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

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

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

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

  33. .0173661111 = 1.7% Ft Peck .156250000 = 15.6% Ft Belknap .0078125000 = 0.8% Blackfeet .114583333 = 11.5% Ft Peck .0078125000 = 0.8% Standing R .0260416667 = 2.6% Ft Hall Example: ITI Report

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

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

  36. Survivors: Husband & Children(less than 5% & no will) Husband 0 Wife Child Age 18 0 Child Age 22 0 Child Age 24 All

  37. .0173661111 = 1.7% Ft Peck .0156250000 = 1.6% Ft Belknap .0078125000 = 0.8% Blackfeet .0114583333 = 1.1% Ft Peck .0078125000 = 0.8% Standing R .0260416667 = 2.6% Ft Hall (Each is less than 5%) 24 year old receives all

  38. Fact Sheet #6 • Your Undivided Interest: 5% or more • What Happens If You Pass Away Without a Written Will?

  39. Parents inherit equally Mother 1/2 Father 1/2 Single Person Passed Away (5% or more, no will)

  40. Equal Amounts to Sisters Father Mother Single person passed away after Father & Mother 1/3 1/3 1/3 (5% or more, no will)

  41. Two Brothers Survive Sisters passed away before brother (5% or more & no will)

  42. Equally to Living Brothers (5% or more & no will)

  43. Living brother receives all (5% or more & no will)

  44. Nieces & Nephews Do NOT Inherit (5% or more no will)

  45. Child passed away before parent What does grandchild receive, if any? (5% & more, no will) Grandchildren

  46. Child passed away before parent Grandchild inherits by right of representation (5% & more, no will) Grandchildren

  47. Two children passed away before parent Survivors: Child & Grandchildren (5% & more, no will) Grandchildren

  48. Two children passed away before parent Survivors: Child & Grandchildren (5% & more, no will) Grandchildren

  49. Survivors: Child & Grandchildren (5% & more, no will) Grandchildren

  50. Survivors: Child & Grandchildren (5% & more, no will) Grandchildren

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