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American Indian Probate Reform Act of 2004 (AIPRA)

American Indian Probate Reform Act of 2004 (AIPRA). Floyd H. Azure II Montana State University Extension Undergraduate Student Assistant Marsha A. Goetting Montana State University Extension Family Economics Specialist; Department of Agricultural Economics & Economics.

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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. 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 #2 • Fractionation:Inherited Undivided Interests

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

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

  10. 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”).

  11. Fractionation • 6 generation family

  12. 1stGeneration Original Allottee

  13. 2nd Generation Original Allottee 1/3 1/3 1/3

  14. 3rd Generation Original Allottee 1/3 1/3 1/3 1/9 1/9 1/9

  15. 4th Generation Original Allottee 1/3 1/3 1/3 1/9 1/9 1/9 1/36 1/36 1/36 1/36

  16. 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

  17. 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 ? ? ?

  18. 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

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

  20. 1st Generation $1,002 Annual Income

  21. 2nd Generation $1,002 Annual Income $334 $334 $334

  22. 3th Generation $1,002 Annual Income $334 $334 $334 $111.33 $111.33 $111.33

  23. 4th Generation $1,002 Annual Income $334 $334 $334 $111.33 $111.33 $111.33 $27.83 $27.83 $27.83 $27.83

  24. 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

  25. 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

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

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

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

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

  30. AmericanIndian Probate Reform Act of 2004(AIPRA)

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