1. 1 American Indian Probate Reform Act of 2004 (AIPRA)

2. 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. 3 Purpose of AIPRA To Prevent Further Fractionation of Trust Lands. To Encourage Consolidation of Indian Land Ownership.

4. 4 AIPRA: Probate Sections Effective for persons who pass away on or after June 20, 2006

5. 5 AIPRA State law no longer applies to Trust Property when a person passes away without a will.

6. 6 14 Fact Sheets Highlight Describe Illustrate

7. 7 Fact Sheet #2 Fractionation: Inherited Undivided Interests

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

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

10. 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. 11 Fractionation  6 generation family

12. 12 1st Generation Original Allottee

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

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

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

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

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

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

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

20. 20 $1,002 Annual Income 1st Generation

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

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

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

24. 24 $1,002 Annual Income $334 $111.33 $27.83 $6.96 $27.83 5th Generation

25. 25 $1,002 Annual Income $334 $111.33 $27.83 $6.96 $27.83 $2.32 6th Generation

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

27. 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. 28 Summary: Fractionation :  Increasing number of owners with each passing generation  Each owner has an undivided interest in the entire parcel

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

30. 30 American Indian Probate Reform Act of 2004 (AIPRA)