National Risk
Management
Education Conference
Phoenix, AZ
April 17 & 18, 2007
1
Planning for the
Passing of Native
American Lands to
Avoid Further
Fractionation
2
Risk Management Agency
Community Outreach
and Assistance
Partnership Program
3
Project Facilitators
• Marsha Goetting
MSU Extension Family Economics Specialist
• Kristin Ruppel
MSU Native American Studies Department
• James B. Johnson
MSU Emeritus Faculty
• Keri Hayes
MSU Extension Publications Assistant
4
Blackfeet, MT
• Verna Billedeaux
MSU Blackfeet Reservation Extension
Agent
• Tamara Birdsbill
Blackfeet
MSU Extension Student Assistant
5
Fort Belknap, MT
• Don Addy
MSU Fort Belknap Reservation
Extension Agent
• Tony Little Owl
Fort Belknap
MSU Extension Student Assistant
6
Fort Peck, MT
• Carrie Sue Archdale
Fort Peck Community College
• Floyd Azure II
Fort Peck
MSU Extension Student Assistant
7
Fort Hall, Idaho
• Marilyn Bischoff
University of Idaho-Boise Center
Extension Family Economics Specialist
• Danielle Gunn
University of Idaho
Fort Hall Extension Agent
• Carol Pabacaro
Fort Hall
University of Idaho Extension Student Assistant
8
American Indian
Probate Reform
Act of 2004
(AIPRA)
9
AIPRA: Probate
Sections
•Effective for
persons who pass
away on or after
June 20, 2006
10
AIPRA
• State law no
longer applies to
Trust Property
when a person
passes away
without a will.
11
14 Fact Sheets
• Highlight
• Describe
• Illustrate
12
Definition
• Fractionation
 An increasing number
of owners for a land
parcel with each
passing generation
13
Fractionation
6
generation
family
14
1st Generation
Original
Allottee
15
2nd Generation
Original
Allottee
1/3
1/3
1/3
16
3rd Generation
Original
Allottee
1/3
1/3
1/9
1/9
1/3
1/9
17
4th Generation
Original
Allottee
1/3
1/3
1/3
1/9
1/36
1/9
1/9
1/36 1/36 1/36
18
5th Generation
Original
Allottee
1/3
1/3
1/3
1/9
1/36
1/9
1/9
1/36 1/36 1/36
1/144 1/144 1/144 1/144
19
6th Generation
Original
Allottee
1/3
1/3
1/3
1/9
1/36
1/9
1/9
1/36 1/36 1/36
1/144 1/144 1/144 1/144
?
?
?
20
6th Generation
Original
Allottee
1/3
1/3
1/9
1/9
1/36
1/36
1/3
1/9
1/36
1/36
1/144 1/144 1/144 1/144
1/432 1/432
1/432
21
Fractionation by
$$$$
• Example
 Lease Dollar Amounts
22
1st Generation
$1,002
Annual Income
23
2nd Generation
$1,002
Annual Income
$334
$334
$334
24
3th Generation
$1,002
Annual Income
$334
$111.33
$334
$111.33
$334
$111.33
25
4th Generation
$1,002
Annual Income
$334
$111.33
$27.83
$334
$111.33
$27.83
$334
$111.33
$27.83
$27.83
26
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
27
6th Generation
$1,002
Annual Income
$334
$334
$111.33
$111.33
$27.83
$6.96
$27.83
$6.96
$111.33
$27.83
$6.96
$2.32
$334
$27.83
$6.96
$2.32
$2.3228
Montana
• For fee land on our
reservations:
Montana law
applies if you pass
away without a will.
29
Personal Property
• AIPRA does not affect:
 Checking Accounts
 Saving Accounts
 Vehicles
• State of residence or
tribal probate laws
apply
30
AIPRA distribution among
eligible heirs:
• Depends on percentage
of undivided interest
owned by the person
who passed away
31
Use ITI Report to
determine % of
ownership
•5% or more?
•Less than 5%?
32
Example: ITI Report
•
•
•
•
•
•
.0173661111 = 1.7% Ft Peck
.1562500000 = 15.6% Ft Belknap
.0078125000 = 0.8% Blackfeet
.1145833333 = 11.5% Ft Peck
.0078125000 = 0.8% Standing R
.0260416667 = 2.6% Ft Hall
33
Single Heir Rule
• Undivided interest of
less than 5%
passes to one person
in following order…..
34
Single Heir Rule
(less than 5% & no will)
• First priority:
 Oldest
surviving
eligible child
35
Survivors: Husband & Children
(less than 5% & no will)
Husband
Wife
0
Child
Age 18
Child
Age 22
0
0
Child
Age 24
All
36
24 year old receives all
 .0173661111 = 1.7%
 .0156250000 = 1.6%
 .0078125000 = 0.8%
 .0114583333 = 1.1%
 .0078125000 = 0.8%
 .0260416667 = 2.6%
Ft Peck
Ft Belknap
Blackfeet
Ft Peck
Standing R
Ft Hall
(Each is less than 5%)
37
Fact Sheet #6
•Your Undivided
Interest:
5% or more
•What Happens If
You Pass Away
Without a
Written Will?
38
Parents inherit equally
Mother
1/2
Father
1/2
Single
Person
Passed Away
(5% or more, no will)
39
Equal Amounts to Sisters
Father
Single
person passed
away after
Father & Mother
Mother
1/3 1/3 1/3
(5% or more, no will)
40
Two Brothers Survive
Sisters passed
away before brother
Brother Sister
Sister
Brother
Brother
Niece Nephew Nephew Nephew Nephew Nephew
(5% or more & no will)
41
Equally to Living Brothers
Bachelor Sister
Brother
Sister
Brother
Brother
1/2
1/2
Niece Nephew Nephew Nephew Nephew Nephew
0
0
0
0
0
(5% or more & no will)
0
42
Nieces & Nephews
Do NOT Inherit
Bachelor Sister
Brother
Sister
Brother
Brother
1/2
Niece Nephew Nephew Nephew Nephew Nephew
0
0
0
0
(5% or more no will)
0
0
43
Child
passed
away
before
parent
o
What does grandchild
receive, if any?
Parent
(5% & more, no
will)
?
?
? ? ? ? ? ?
Grandchildren
44
Child
passed
away
before
parent
o
1/3
Grandchild inherits by
right of representation
(5% & more,
no will)
Parent
1/3
0
0
1/3
0
Grandchildren
0
0
45
Survivors: Child &
Grandchildren
Two
children
passed
away
before
parent
o
Parent
(5% & more,
no will)
?
o
? ? ? ? ? ?
Grandchildren
46
Survivors: Child &
Grandchildren
Two
children
passed
away
before
parent
1/3
(5% & more,
no will)
Parent
1/3
o
1/3 1/6 1/6
0
Grandchildren
0
0
47
Survivors: Child &
Grandchildren
Parent
Passes
Away
(5% & more,
no will)
?
? ? ? ? ? ?
o
o
Grandchildren
48
Survivors: Child &
Grandchildren
(5% & more,
no will)
o
1/3
Parent
Passes
Away
1/3
0
0
o
1/9 1/9 1/9
Grandchildren
49
Survivors:
Grandchildren
(5% & more,
no will)
o
Parent
Passes
Away
o
All
children
passed
away
before
parent
o
1/3 1/6 1/6 1/9 1/9 1/9
Grandchildren
50
IIM Accounts
• Money
earned from
 Leases
 Timber/Land Sales
 Grazing
 Mineral Royalty Payments
51
Do I have an IIM
account?
•Office of the
Special Trustee
(OST) on each
reservation
•Ledger Report
52
OST Phone Numbers
Blackfeet: 406-338-7518
Fort Peck: 406-768-3288
Fort Belknap: 406-353-2281
Fort Hall: 208-238-2310
53
IIM equally to
brothers & sisters
Father
Single
person passed
away after
Father & Mother
Mother
1/3 1/3 1/3
54
IIM Account: $3,000
Father
Single
person passed
away after
Father & Mother
Mother
$1,000 $1,000 $1,000
55
2 living, 2 deceased
Sisters passed
away before brother
Brother Sister
Sister
(no will)
Brother
Brother
Niece Nephew Nephew Nephew Nephew Nephew
56
IIM Distribution
Bachelor Sister
Brother
Sister
Brother
Brother
1/2
1/2
Niece Nephew Nephew Nephew Nephew Nephew
0
0
0
0
0
0
57
IIM Accounts
Wife
1/3
Husband
Equally divide 2/3
Their
Child
2/9
Their
Child
2/9
Their
Child
2/9
58
IIM $9,000
Wife
1/3
$3,000
Husband
Equally divide 2/3 = $6,000
Their
Child
$2,000
Their
Child
$2,000
Their
Child
$2,000
59
Wife
1/3
$3,000
Husband
$9,000
Equally divide 2/3 = $6,000
Their
Child
$2,000
Grand
Child
$1,000
Grand
Child
$1,000
Their
Child
$2,000
Their
Child
$2,000
Grand
Child
0
60
Writing a Will
•Fact
Sheet
#9
61
Written Will
• Pass undivided
interests in trust
lands and IIM
money to
whomever you
choose
62
Does my will have
to be witnessed?
• Federal law--YES
• Two witnesses
– Neither “should”
be a beneficiary in
the will
63
BIA Policy
•
Agency staff
does not
•write wills
•store wills
64
American
Indian Probate
Reform Act
of 2004
(AIPRA)
65
14 Fact Sheets
• Highlight
• Describe
• Illustrate
66
CD PowerPoint
• 260 slides
–Educator select
section
•fact sheet
67
Packet extras
•
•
•
•
Cover letter
References
Order form
Acknowledgments
68
Next Stage
• Develop series
of newspaper
articles
–Based on fact
sheet content
69
Symposium
• Inheriting
Indian Lands
•MSU
–April 12 – 13, 2007
70
Planning for the
Passing of Native
American Lands to
Avoid Further
Fractionation
71