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Fractionation: Inheriting undivided interests—Article 2
This article about fractionation is the second in a 13-part series that explains major sections of the American Indian Probate Reform Act (AIPRA) that took effect on June 20, 2006.
When people pass away without a written will, interests allotted or inherited in trust landspass to their heirs under the American Indian Probate Reform Act (AIPRA). One of the goals of AIPRA was to create a uniform probate code that would reduce fractionation on reservations. This article explains whatfractionationis and how it results when family membersinherit undivided interests in allotments.
Under the General Allotment Act, each individual tribal member was allotted land on his or her reservation. As these “original allottees” have passed away, their single ownership interests have usually been inherited by multiple heirs. Each of these individuals then owns an undivided interest in the entire allotment. The allotment—the land itself—remains undivided (not partitioned), so that none of the heirs has a right to any specific parcel of land or “piece” of the allotment.
If you have inherited an undivided interest of an allotment, your BIA Individual Trust Interest (ITI) report shows the fractional interest you own. Article #4 in two weeks will describe in more detail where you can get an ITI report, what the numbers in the report mean, and why the report is important to you.
The illustration below shows a six generation example of the inheritance of undivided interests in one family expressed in decimal values. Similar information is provided in the Individual Trust Interest (ITI) report in the AGGREGATE DECIMAL column. The only difference is that the ITI report shows ten numbers to the right of the decimal (for example, 0.1364583333.) In Figure 1, the decimal values have been rounded to four numbers to the right of the decimal.
Inheritance of Undivided Interests by Decimal Values
Through Six Generations (Rounded)
1st Generation. The original allottee was allotted 320 acres. The decimal value of ownership is 1.00. The allottee had three children who survived him when he passed away.
2nd Generation. Each of the original allottee’s three children equally inherited an undivided interest of 0.3333 in each acre in the allotment. When one of these children passed away, she was survived by three children (grandchildren of the original allottee).
3rd Generation. Each of these surviving three grandchildren equally inherited an undivided interest of 0.1111 (0.3333 ÷ 3) in each acre in the allotment. When one of these grandchildren passed away, she left four children (great-grandchildren of the original allottee.)
4th Generation. Each of these four great-grandchildren equally inherited an undivided interest of 0.0278 (0.1111 ÷ 4) in each acre in the allotment. When one of these great-grandchildren passed away, she was survived by four children (great-great grandchildren of the original allottee).
5th Generation. Each of these four great-great-grandchildren equally inherited an undivided interest of 0.0069 (0.0278 ÷ 4) in each acre in the allotment. When one of these great-great grandchildren passed away, three children survived (great-great-great grandchildren of the original allottee).
6th Generation. Each of these three great-great-great grandchildren equally inherited an undivided interest of 0.0023 (0.0069 ÷ 3) in each acre in the allotment.
Do you own an undivided interest in allotments on one or more reservations? Do you have problems or potential problems with fractionation?
To gain a better understanding of how your land may fractionate upon your passing if you don’t write a will, draw a family tree similar to the illustration in this article. Use your Individual Trust Interest (ITI) report to determine the amount of undivided interests you may own.
This was the second of 13 articles explaining AIPRA. Further information is in a packet of 14 Fact Sheets that is available free from(name and address of agent). The packets were developed with funding from the Community Outreach and Assistance Partnership Program of the Risk Management Agency of USDA. Next week'sarticle will explainhow reservation land can be owned by individuals.
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