1 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 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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AIPRA distribution among eligible heirs:

• Depends on percentage of undivided interest owned by the person who passed away

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Do you own:

5% or more?Less than 5%?

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Fact Sheet #4•Your Individual Trust Interest (ITI) Report: How to read it

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Where do I get my ITI Report?•Local BIA OfficeRealty DepartmentFort Peck406-768-5112

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Where do I get my ITI Report?•BIA Regional Office

Rocky Mountain Region

Billings 406-247-7943

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Important fact on

ITI Report: • Amount of undivided interest owned in each parcel.

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ITI Report AGGREGATE DECIMAL

• Right side, lower middle

• Decimal– .0173611111

C

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Because AIPRA uses percent

Convert Decimal to %•.0173611111

=1.7%

C

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Example: ITI Report

• .0173661111 = 1.7% Ft Peck

• .156250000 = 15.6% Ft Belknap

• .0078125000 = 0.8% Blackfeet

• .114583333 = 11.5% Ft Peck

• .0078125000 = 0.8% Standing R

• .0260416667 = 2.6% Ft Hall

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Use ITI Report to determine % of ownership

•5% or more?•Less than 5%?

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Fact Sheet #7

If your undivided interest in each allotment is:

less than 5%What Happens If You

Pass Away Without Writing a Will?

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Single Heir Rule

•Undivided interest of less than 5%passes to one person in following order…..

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Single Heir Rule

• First priority: Oldest surviving eligible child

(less than 5% & no (less than 5% & no will)will)

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• If no surviving eligible child Oldest surviving eligible grandchild

Single Heir Rule(less than 5% & no (less than 5% & no will)will)

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Single Heir Rule

•If no surviving eligible grandchildOldest surviving eligible great- grandchild


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Single Heir Rule

•If no surviving eligible child, grandchild or great-grandchild

Tribe


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Single Heir Rule

•If tribe does not have jurisdiction

Equal shares to Co-owners


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Single person--

•Never married•Widowed•Divorced•Common Law

(less than 5% & no will)(less than 5% & no will)

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Example 1:• Person has no written willNo SpouseNo ChildrenNo GrandchildrenNo Great Grandchildren

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ITI Report

.0173661111 = 1.7% Ft Peck .0156250000 = 1.6% Ft Belknap .0078125000 = 0.8% Blackfeet .0114583333 = 1.1% Ft Peck .0078125000 = 0.8% Standing R .0260416667 = 2.6% Ft Hall

(Each is less than 5%)

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Single Heir Rule

•Undivided interest of less than 5% passes to:

Tribe with jurisdiction

(no will)(no will)

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Tribe Inherits



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Example 2: Single, no spouse

•Has living Children


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Children defined

(AIPRA)•Biological•Legally adopted

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Child Age 19

ChildAge 29

DAD

Example 2: Dad passes Survivors: 2 kids


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Dad’s ITI Report



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Single Heir Rule

•All interests pass to oldest surviving eligible child(less than 5% & no will)(less than 5% & no will)

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Child Age 19

ChildAge 29

DAD

Which child receives?

(less than 5% & (less than 5% & no will)no will)

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Oldest Child – Age 29

.017366111 = 1.7% Ft Peck

.015625000 = 1.6% Ft Belknap

.007812500 = 0.8% Blackfeet

.011458333 = 1.1% Ft Peck

.007812500 = 0.8% Standing

.026041666 = 2.6% Ft Hall

(Receives <5% interest on (Receives <5% interest on each reservation)each reservation)

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Married--AIPRA

• Includes Separated Legal separation

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Example 3: Married

•Husband passes away•Survivor:

•Wifenot living on a parcel

No Children


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Husband’s ITI Report .0173661111 = 1.7% Ft Peck .0156250000 = 1.6% Ft Belknap .0078125000 = 0.8% Blackfeet .0114583333 = 1.1% Ft Peck .0078125000 = 0.8% Standing R .0260416667 = 2.6% Ft Hall


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Single Heir Rule

•There is no surviving eligible: child or grandchild or great-grandchild


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Example 3: Wife not on parcel


• All interests pass to Tribe.

•Spouse receives nothing.

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Passes to Tribe where interest is located .0173661111 = 1.7% Ft Peck .0156250000 = 1.6% Ft Belknap .0078125000 = 0.8% Blackfeet .0114583333 = 1.1% Ft Peck .0078125000 = 0.8% Standing R .0260416667 = 2.6% Ft Hall


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Example 4: •Survivors:

Husband Not living on the parcel

3 Children

(less than (less than 5% & no will)5% & no will)

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Husband

ChildAge 18

ChildAge 22

ChildAge 24

Wife

Example 4: Ages of Children

(less than 5% (less than 5% & no will)& no will)

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Mom’s ITI Report



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Single Heir Rule

•Interests of less than 5% pass to oldest surviving eligible child

(no will)(no will)

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Husband

0

ChildAge 18

0

ChildAge 22

0

ChildAge 24All

Wife

Survivors: Husband & Children

(less than 5% & no will)

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24 year old receives all .0173661111 = 1.7% Ft Peck .0156250000 = 1.6% Ft Belknap .0078125000 = 0.8% Blackfeet .0114583333 = 1.1% Ft Peck .0078125000 = 0.8% Standing R .0260416667 = 2.6% Ft Hall


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Family Example 5

•Survivors Wife

•living on one of the parcels

3 Children


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Spouse lives

on parcel .017366111 = 1.7% Ft Peck.015625000 = 1.6% Ft Belknap.007812500 = 0.8% Blackfeet.011458333 = 1.1% Ft Peck.007812500 = 0.8% Standing .026041666 = 2.6% Ft Hall


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Spouse Lives on

Fort Peck parcel

ChildAge 18

ChildAge 22

ChildAge 24

Husband

Children & Spouse

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Exception: Single Heir Rule •If spouse living on parcel: He/she receives life estate on that parcel, including the family home


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Life Estate

•Allows life tenant to have possession of property during his/her lifetime–But not ownership of property


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Single Heir Rule: No will•Oldest child receives:Remainder interest

home land

Receives parcels with interests of less than 5%.

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Remainderman

•Person entitled to property after the life tenant has passed away

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Oldest ChildSpouse – life estate

.017366111 = 1.7% Ft Peck.015625000 = 1.6% Ft Belknap.007812500 = 0.8% Blackfeet.011458333 = 1.1% Ft Peck.007812500 = 0.8% Standing .026041666 = 2.6% Ft Hall


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Wife Life Estate

Husband

Trust Land(less than 5%& no will)(less than 5%& no will)

ChildAge 18

0

ChildAge 22

0

ChildAge 24parcels with less than 5%

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WifeHusband

Spouse passes away(less than 5% & no will)(less than 5% & no will)

Child0

OldestChildAge 24

Child0

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Upon Mother’s passing oldest child receives:

• Remainder interest–1.7% parcel Fort Peck

•Includes family home

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Oldest Child Receives remainder interest

.017366111 = 1.7% Ft Peck

.015625000 = 1.6% Ft Belknap

.007812500 = 0.8% Blackfeet

.011458333 = 1.1% Ft Peck

.007812500 = 0.8% Standing

.026041666 = 2.6% Ft Hall


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Summary: Less than 5% (no will)

•Single Heir Rule: Less than 5% interests pass to oldest child.

Exception spouse living on parcel receives life estate.

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More information:

•Fact Sheet #7Your Undivided Interest of less than 5%:

What Happens If You Pass Away Without a Written Will ?

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American Indian Probate Reform Act of 2004(AIPRA)

Documents

1 American Indian Probate Reform Act of 2004 (AIPRA)