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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Individual Indian Money Accounts

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Your (IIM) Account

• Fact Sheet #13

What happens What happens to your money to your money if you pass if you pass away without away without a will?a will?

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IIM Accounts• Money earned from

Leases

Timber/Land Sales

Grazing

Mineral Royalty Payments

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Do I have an IIM account?

•Office of the Special Trustee (OST) on each reservation•Ledger Report

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OST Phone Numbers

Blackfeet: 406-338-7518Fort Peck: 406-768-3288Fort Belknap: 406-353-2281

Fort Hall: 208-238-2310

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How to get my IIM Ledger?

•Toll Free1-888-678-6836

•Enrollment Number

•Last 4 numbers of SS#

•Date of Birth

•Mailing Address

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Trust Status•Indian spouse & Eligible Heirs– retain trust status of money in account

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Non-Indians•Secretary of Interior distributes IIM monies to them

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IIM Distribution •Depends on Family Situation– Single– Married

(no will)(no will)

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Example 1: Single•No spouse•No children•No grandchildren•No great grandchildren

–Parents are living

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Mother

1/2

Single Person

Father

1/2

Survivors: IIM to Parents equally

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IIM: $5,000Mother

$2,500Dad

$2,500

Single Person

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Mother

ALL

Single Person

Father

Survivor: One Parent

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Mother

$5,000

Single Person

Father

Survivor: IIM to One parent

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Example 2:• If no spouse, no

children, no grandchildren, no great grandchildren or no parents

–Brothers & sisters split IIM money

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Single person passed

away after Father & Mother

1/3 1/3 1/3

IIM equally to brothers & sisters

Father Mother

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Single person passed

away after Father & Mother

$1,000 $1,000$1,000

IIM Account: $3,000

Father Mother

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Example 3: Single Person

•No children•Parents deceased•Brothers & sisters

• Deceased & living

(no (no will)will)

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Brother

Niece

Sister

Nephew Nephew

Sister

Nephew

Brother

Nephew Nephew

Brother

2 living, 2 deceased(IIM no will)(IIM no will)Sisters passed

away before brother

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IIM Distribution

BachelorBrother

Niece

0

Sister

Nephew

0Nephew

0

Sister

Nephew

0

Brother

1/2

Nephew

0Nephew

0

Brother

1/2

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IIM Distribution

BachelorBrother

Niece

0

Sister

Nephew

0Nephew

0

Sister

Nephew

0

Brother

o

Nephew

0Nephew

0

Brother

All

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Example 4:

•Single– with children

(no will)(no will)

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Survivors : 3 kidsSingleParent PassedAway

Child Child Child

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IIM passes in equal shares

Parent PassedAway

1/3 1/3 1/3

(no will)(no will)

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Example 5:

•Single person– 3 living children– 6 living grandchildren

(no will)(no will)

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Equal shares to children

Parent

1/3 1/3 1/3

0 0 00 0 0Grandchildren

(no will)(no will)

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Example 6: IIM

•What if ?•a person (with 1 child) passes away before parents?

(no will)(no will)

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Parent

? ?

? ? ??0

? ?/ ? //

Person passedaway

before parent

Grandchildren

(no (no will)will)

IIM Distribution

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Right of Representation• Grandchildren receive the IIM share their parent would have received if he/she had lived(no will)(no will)

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IIM: Children & Grandchild inherit

Parent

1/3 1/3

1/3 0 00 0

Child passedaway

before parent

0Grandchildren

(no (no will)will)

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Example 7:•What if ?

• A son with 1 child• A daughter with 2 children passed away before parent?

(no will)(no will)

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Parent

1/3 1/3 1/3

1/3 1/6 01/6 0 0

Two children passed

away before parent

Grandchildren

(no (no will)will)

IIM Distribution

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Example 8:•What if ?

• A son with 1 child• A daughter with 3 children passed away before parent?

(no will)(no will)

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IIM Distribution

ParentPasses Away

o 1/3 o

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

Child passed

away before parent

Child passed

away before parent

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Example 9:•What if ?

•All children pass away before parents

• There are 6 living grandchildren

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Survivors : Grandchildren

ParentPasses Away

o o 1/3

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

All kids passed

away before parent

Grandchildren

(no will)(no will)

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Summary

•IIM Account Distribution– depends upon family situation for a single person

(no (no will)will)

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Family Situation• Married person

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Example 1: Married •Survivors

–Wife–No children

(no will)(no will)

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WifeAll

Husband

IIM Account

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HusbandWife

$2,000

$2,000 IIM

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Example 2: Married •Survivors –Wife–3 Children

(no will)(no will)

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Wife

TheirChild

TheirChild

TheirChild

Husband

IIM Account

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IIM Account-no will

•Surviving Spouse

•1/3

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IIM Account-no will• Children split remaining

•2/3

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Wife1/3

TheirChild2/9

TheirChild2/9

TheirChild2/9

Husband

IIM Accounts

Equally divide 2/3

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Wife1/3

$3,000

TheirChild

$2,000

TheirChild

$2,000

TheirChild

$2,000

Husband

IIM $9,000

Equally divide 2/3 = $6,000

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Example 3: Married •Survivors

–Wife–2 living children–1 deceased child with children

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Wife1/3

$3,000

TheirChild

$2,000

TheirChild

$2,000

TheirChild

$2,000

Husband $9,000

Equally divide 2/3 = $6,000

Grand Child

$1,000

Grand Child

$1,000

Grand Child

0

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Summary

•Surviving Spouse –All if no children

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Summary•Surviving Spouse –1/3

•Children –2/3

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More Information •Fact Sheet #13

What What happens to happens to your IIM your IIM money if you money if you pass away pass away without a without a will?will?

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American Indian Probate Reform Act of 2004(AIPRA)