American Indian Probate Reform Act of 2004 (AIPRA)

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American Indian Probate Reform Act of
2004(AIPRA)
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Floyd H. Azure II Montana State University
Extension Undergraduate Student
AssistantMarsha A. GoettingMontana State
University Extension Family Economics
Specialist Department of Agricultural
Economics Economics
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Purpose of AIPRA

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

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AIPRA Probate Sections

• Effective for persons who pass away on or after
  June 20, 2006

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AIPRA

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

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14 Fact Sheets

• Highlight
• Describe
• Illustrate

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Fact Sheet 2

• Fractionation Inherited Undivided Interests

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Description

• Brief history
• What is Fractionation?
• How does Fractionation affect us?

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Definition

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

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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).

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Fractionation

• 6 generation family

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1st Generation
Original Allottee
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2nd Generation
Original Allottee
1/3
1/3
1/3
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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
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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
?
?
?
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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
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Fractionation by

• Example
• Lease Dollar Amounts

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1st Generation
1,002 Annual Income
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2nd Generation
1,002 Annual Income
334
334
334
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3th Generation
1,002 Annual Income
334
334
334
111.33
111.33
111.33
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4th Generation
1,002 Annual Income
334
334
334
111.33
111.33
111.33
27.83
27.83
27.83
27.83
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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
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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
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As of 2006, the average trust allotment has..

• 17.4 owners.

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Or Even Worse.

• Some shares are as small as
• 1
• 9,000,000 of a parcel.

• Thats equivalent to 1.74 square feet!

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Summary

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

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More Information

• Fact Sheet 2
• Fractionation Inherited Undivided Interest

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American Indian Probate Reform Act of
2004(AIPRA)