The Full Meaning of “AIPRA” American Indian Probate Reform Act of 2004

The Full Meaning of “AIPRA”American Indian Probate Reform Act of 2004 Danielle Gunn University of Idaho Agricultural Extension Educator

AIPRA How??? Why??? Who??? What??

History of Fractionation • General Allotment Act of 1887 • Indian owned trust allotments • State Law • 1902 • Heirs were authorized to convey trust allotments • 1913 • Wills were allowed • 1984 • Power conferred to federal courts

Evolution of AIPRA • IRA Act of 1934 • Limited inheritance by will to heirs • 1980 Amendment • Allowed will inheritance by heirs of lineal descent or tribal members • Indian Land Consolidation Act of 1984 • Designated Fractional interest of ≤2% to tribe

Final Evolution • Indian Land Consolidation Act of 2000 • Designed to reduce fractionation • AIPRA

AIPRA Regulates: • Trust Land • Regardless of location, except Alaska • IIM Accounts • Doesn’t affect personal property

AIPRA • An approved Tribal Probate Code takes precedence over AIPRA • Effective for persons who pass away on or after June 20, 2006

Fee Land • State law applies if you pass away without a written will.

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

Fractionation • An increasing number of owners for a land parcel with each passing generation. • 6 generation example

1stGeneration Original Allottee

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 1/432 1/432 1/432

1st Generation $1,002 Annual Income

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

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

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

AIPRA & Heirs • Interests must pass to: • Eligible Heirs • Children • Grandchildren • Great grandchildren • Brothers & sisters • Half brothers & sisters by blood • Parents

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

“Indian” - AIPRA 1.Member of a federally recognized Indian tribe. • Eligible to become a member of a federally recognized Indian tribe. • Owner of trust or restricted land on or before October 27, 2004. • Meets the definition of Indian under the 1934 Indian Reorganization Act (IRA). • Person of Indian ancestry who owns trust or restricted land in California.

AIPRA • Depends upon: • Percentage of undivided interests owned by person who passed. • Less than 5% • 5% or more

AIPRA %: Your ITI Report • Amount of undivided interest owned in each parcel • BIA Regional Office • Portland, OR • Local BIA Office • Realty Department • 208-238-7928

.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

ITI & AIPRA • Convert (.) to a %! • .0173611111=1.7% • Determine % of ownership • Less than 5% • 5% or more

Less than 5% • If your undivided interest in each allotment is: less than 5% • What happens if you pass away without writing a will?

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

Single Heir Rule (less than 5% & no will) • First priority: • Oldest surviving eligible child • Second priority: • Oldest surviving eligible grandchild • Third priority: • Oldest surviving eligible great-grandchild • Fourth priority: • Tribe

Example 1: • Single person has no written will • No Spouse • No Children • No Grandchildren • No Great Grandchildren

.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%) ITI Report

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

Example 2: • Single, no spouse • Living Children • Children • Biological • Legally adopted (less than 5% & no will)

Single Heir Rule • All interests pass to oldest surviving eligible child (less than 5% & no will)

Married--AIPRA • Includes • Separated • Legally Separated

Example 1: Married (less than 5% & no will) • Husband passes away • Survivor: • Wife • not living on a parcel • No Children

Example 1: Married • Wife not living on parcel • Tribe receives all interests • Spouse receives nothing (less than 5% & no will)

Example 2: • Survivors: • Husband • Not living on the parcel • 3 Children

(less than 5% & no will) Example 2: Ages of Children Husband Wife Child Age 18 Child Age 22 Child Age 24

Single Heir Rule (no will) • Interests of less than 5% • pass to oldest surviving eligible child • Husband receives Ø.

Example 3: • Survivors • Wife lives on one of the parcels • 3 Children (less than 5% & no will)

Children & Spouse Spouse Lives on Fort Peck parcel Husband Child Age 18 Child Age 22 Child Age 24

Exception to Single Heir Rule • If spouse lives on a parcel: • He/she receives life estate on that parcel, including the family home (less than 5% & no will)

Life Estate • Allows life tenant to have possession of property during his/her lifetime • Does not receive ownership of property (less than 5% & no will)

Single Heir Rule • After spouse passes: • Oldest child receives: • Remainder interest • Home, • Land, and • Parcels with interests of less than 5%.

Remainderman • Person entitled to property after the life tenant has passed away

Summary: Less than 5%(no will) • Single Heir Rule: • <5% interests pass to oldest child. • Exception: • Spouse living on parcel receives life estate.

5% or More Interest • What happens if you pass away without a written will? • Depends on: • Marital Status • Descendants

.0173661111 = 1.7% Ft Peck .1056250000 = 10.0% Ft Belknap .5078125000 = 50.0% Blackfeet .0114583333 = 1.1% Ft Peck .0878125000 = 8.0% Standing R .0260416667 = 2.6% Ft Hall ITI Report Ownership (5% or more, no will)

Example 1: Single Person • No Children • Parents are Living (5% or more, no will)

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

Example 2: Single Person • Parents are deceased • Living brothers & sisters • Undivided interest passes equally to: • Brothers & Sisters

What If? • No surviving eligible Parent, Brothers or Sisters • Land passes to: • Tribe where interest in parcel is located • Nieces and nephews don’t inherit. (5% or more, no will)

The Full Meaning of “AIPRA” American Indian Probate Reform Act of 2004