1 Women in Agriculture Risk Management Education Conference Oklahoma City April 1 & 2, 2008.

1

Women in Women in Agriculture Risk Agriculture Risk Management Management Education Education ConferenceConference

Oklahoma CityApril 1 & 2, 2008

2

Planning for the Planning for the Passing of Native Passing of Native American Lands American Lands to Avoid Further to Avoid Further FractionationFractionation

3

American Indian Probate Reform

Act of 2004(AIPRA)

4

Community Outreach and

Assistance Partnership

Program

Risk Management Agency

5

Project Facilitators• Marsha Goetting

MSU Extension Family Economics Specialist

• Kristin RuppelMSU Native American Studies Department

• Keri HayesMSU Extension Publications Assistant

6

Blackfeet, MT• Verna Billedeaux

MSU Blackfeet Reservation Extension Agent

• Tamara BirdsbillBlackfeet MSU Extension Student Assistant

7

Fort Belknap, MT• Don Addy

MSU Fort Belknap Reservation Extension Agent

• Tony Little OwlFort Belknap MSU Extension Student Assistant

8

Fort Peck, MT• Carrie Sue Archdale

Fort Peck Community College

• Floyd Azure IIFort Peck MSU Extension Student Assistant

9

Fort Hall, Idaho• Marilyn Bischoff

University of Idaho-Boise CenterExtension Family Economics Specialist

• Danielle GunnUniversity of Idaho Fort Hall Extension Agent

• Carol PabacaroFort HallIdaho State University Extension Student Assistant

10

Team Decision•Fact sheets

•News articles

•Seminars & Workshops

11

AIPRA Probate Sections

•Effective for persons who pass away on or after June 20, 2006

12

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

13

Definition

•Fractionation An increasing number of owners for a land parcel with each passing generation

14

Fractionation6 generation family

15

1st Generation

Original Allottee

16

1/3

2nd Generation Original Allottee

1/31/3

17

1/91/91/9

3rd GenerationOriginal Allottee

1/3 1/31/3

18

4th GenerationOriginal Allottee

1/3 1/3 1/3

1/9 1/9 1/9

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

19

5th GenerationOriginal Allottee

1/3 1/3 1/3

1/9 1/9 1/9

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

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

20

6th GenerationOriginal Allottee

1/3 1/3 1/3

1/9 1/9 1/9

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

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

???

21

6th GenerationOriginal Allottee

1/3 1/3 1/3

1/9 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

22

Fractionation by $$$$• Example

Lease Dollar Amounts

23

$1,002Annual Income

1st Generation

24

$1,002Annual Income

$334$334 $334

2nd Generation

25

$1,002Annual Income

$334$334 $334

$111.33 $111.33 $111.33

3th Generation

26

$1,002Annual Income

$334$334 $334

$111.33 $111.33 $111.33

$27.83 $27.83 $27.83 $27.83

4th Generation

27

$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

28

$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

29

Montana•For “fee” land on our reservations:

Montana law applies if you pass away without a will.

30

Personal Property• AIPRA does not affect: Checking Accounts Saving Accounts Vehicles

• State of residence or

tribal probate laws apply

31

AIPRA distribution among eligible heirs:• Depends on percentage of undivided interest owned by the person who passed away

32

Use I T I Report to determine % of ownership

•5% or more?•Less than 5%?

33

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

34

Single Heir Rule

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

35

Single Heir Rule

• First priority: Oldest surviving eligible child

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

36

Husband

0

ChildAge 18

0

ChildAge 22

0

ChildAge 24All

Wife

Survivors: Husband & Children

(less than 5% & no will)

37

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

(Each is less than 5%)

38

Fact Sheet #6•Your Undivided Interest:

5% or more•What Happens If You Pass Away Without a Written Will?

39

Mother

1/2Single Person

Passed Away

Father

1/2

Parents inherit equally

(5% or more, no will)(5% or more, no will)

40

Single person passed

away after Father & Mother

1/3 1/3 1/3

Equal Amounts to Sisters

Father Mother

(5% or more, no (5% or more, no will)will)

41

Brother

Niece

Sister

Nephew Nephew

Sister

Nephew

Brother

Nephew Nephew

Brother

Two Brothers Survive

(5% or more & no will)(5% or more & no will)

Sisters passedaway before brother

42

BachelorBrother

Niece

0

Sister

Nephew

0Nephew

0

Sister

Nephew

0

Brother

1/2

Nephew

0Nephew

0

Brother

1/2

Equally to Living Brothers

(5% or more & no will)(5% or more & no will)

43

BachelorBrother

Niece

0

Sister

Nephew

0Nephew

0

Sister

Nephew

0

Brother

1/2

Nephew

0Nephew

0

Brother

Property goes to Tribe

(5% or more no will)(5% or more no will)

44

Parent

o ? ?

? ? ?? ? ?

Child passedaway

before parent

Grandchildren

(5% & more, no (5% & more, no will)will)

What does grandchild receive, if any?

45

Grandchild inherits by right of representation

Parent

o 1/3 1/3

1/3 0 00 0 0

Child passedaway

before parent

Grandchildren

(5% & more, (5% & more, no will)no will)

46

Parent

o o ?

? ? ?? ? ?

Two children passed

away before parent

Grandchildren

(5% & (5% & more, no more, no will)will)

Survivors: Child & Grandchildren

47

Parent

1/3 o 1/3

1/3 1/6 01/6 0 0

Two children passed

away before parent

Grandchildren

(5% & (5% & more, no more, no will)will)

Survivors: Child & Grandchildren

48

Survivors: Child & Grandchildren

ParentPasses Away

o ? o

? ? ?? ? ?Grandchildren

(5% & (5% & more, no more, no will)will)

49

Survivors: Child & Grandchildren

ParentPasses Away

o 1/3 o

1/3 0 1/90 1/9 1/9Grandchildren

(5% & (5% & more, no more, no will)will)

50

Survivors: Grandchildren

ParentPasses Away

o o o

1/3 1/6 1/91/6 1/9 1/9

All children passed

away before parent

Grandchildren

(5% & (5% & more, no more, no will)will)

51

Who receives depends on % of ownership

•5% or more?•Less than 5%?

52

14 Fact Sheets • Highlight• Describe• Illustrate

53

Newspaper Articles

•Fort Peck Journal•Wotanin-Wowapi•Fort Belknap News

54

Packets Distributed

• As a result of:–News articles 400

–Seminars 500

55

Evaluation Comment

“We have no access to a computer so appreciate the packets.”

56

CD PowerPoints • Presentations by topics = 8–5% or more–Less than 5%–Fractionation–ITI report –Writing a will

57

Web Site • Fact sheets• Newspaper articles

• PowerPoints•www.montana. edu/indianlands

58

Webtrends

•January 2008–1,376 visits

59

Web Site Linked by • Institute for Indian Estate Planning & Probate– Seattle School of Law

60

Web Site Linked by • Indian Land Tenure Foundation

61

No Web Email Access

•Bureau of Indian Affairs

•Office of Special Trustee

62

Symposium

• Inheriting Indian Lands

•75 participantsApril 12 – 13, 2007

63

Symposium

• CD of speakers

• Available from [email protected]

64

Planning for the Planning for the Passing of Native Passing of Native American Lands American Lands to Avoid Further to Avoid Further FractionationFractionation