1 American Indian Probate Reform Act of 2004 (AIPRA)

2 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

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 is Fractionation? 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 1st Generation Original Allottee

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

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

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

16 5th Generation Original Allottee 1/3 1/9 1/36 1/144

17 6th Generation Original Allottee 1/3 1/9 1/36 1/144 ? ? ?

18 6th Generation Original Allottee 1/3 1/9 1/36 1/144 1/432

19 Fractionation by $$$$ Example  Lease Dollar Amounts

20 $1,002 Annual Income 1st Generation

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

22 $1,002 Annual Income $334 $ th Generation

23 $1,002 Annual Income $334 $ $ th Generation

24 $1,002 Annual Income $334 $ $27.83 $6.96 $ th Generation

25 $1,002 Annual Income $334 $ $27.83 $6.96 $27.83 $2.32 6th Generation

26 As of 2006, the average trust allotment has… 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 American Indian Probate Reform Act of 2004 (AIPRA)