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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 Assistant

Marsha 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

1887Allotted land to individual

Indians.Established concept of “the

individual” in traditional Native American life (“My land”).

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Fractionation6 generation family

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1st Generation

Original Allottee

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1/3

2nd Generation Original Allottee

1/31/3

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1/91/91/9

3rd GenerationOriginal Allottee

1/3 1/31/3

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4th GenerationOriginal Allottee

1/3 1/3 1/31/9 1/9 1/9

1/36 1/36 1/36 1/36

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5th GenerationOriginal Allottee

1/3 1/3 1/31/9 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 GenerationOriginal Allottee

1/3 1/3 1/31/9 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 GenerationOriginal Allottee

1/3 1/3 1/31/9 1/9 1/9

1/36 1/36 1/36 1/36

1/144 1/144 1/144 1/144

1/4321/432 1/432

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Fractionation by $$$$• Example

Lease Dollar Amounts

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$1,002Annual Income

1st Generation

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$1,002Annual Income

$334$334 $334

2nd Generation

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$1,002Annual Income

$334$334 $334$111.33 $111.33 $111.33

3th Generation

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$1,002Annual Income

$334$334 $334$111.33 $111.33 $111.33

$27.83 $27.83 $27.83 $27.83

4th Generation

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$1,002Annual Income

$334$334 $334$111.33 $111.33 $111.33

$27.83 $27.83

$6.96 $6.96 $6.96 $6.96

$27.83 $27.83

5th Generation

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$1,002Annual Income

$334$334 $334

$111.33 $111.33 $111.33

$27.83 $27.83

$6.96 $6.96 $6.96 $6.96

$27.83 $27.83

$2.32$2.32$2.32

6th Generation

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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.

• That’s 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)