Family/Co-Owner

Management Project
A New Model for Eliminating Fractionated
Management for Native Landowners

Concept and Policy Paper

Indian Land Tenure Foundation

151 County Road B2 E
Little Canada, MN 55117-1523

Project Summary
For more than a century, Indian families have seen valuable land resources diminished as fractionated
ownership of individual allotments increases with each passing generation. Fractionated ownership
prevents landowners from effectively using their land because of excessive probate backlogs; difficulty
contacting multiple co-owners; problems executing real estate transactions; and mandatory involvement
of the federal government, due to its trust responsibilities. The loss of individual rights to possession
and/or use causes most Indian lands to remain either underutilized economically or more often unused
altogether.
Because there are so many parties involved in developing allotted land, real estate transactions can take
five to 10 times longer than for standard fee land. More often, transactions are never completed because
the potential benefits the owner might achieve through the transaction are negated by the overwhelming
time and expense involved in doing the deal. Factor in the uncertainty financial institutions have with
lending in Indian Country and it becomes clear why underdevelopment and poverty on reservations
continues.
In developing the Family/Co-Owner Management Project, the Indian Land Tenure Foundation (ILTF)
intends to advance the understanding of Family/Co-Owner Management Entities (FCMEs) as an effective
way to reduce land title fractionation. The Project will give families and co-owners the opportunity to
create their own plan and structure that will lead to more effective management of their land. The goal is
for Indian trust and restricted fee land to be treated more like non-Indian land so that it can become more
economically productive, easier and more efficient to manage, and can better reflect the modern
management practices of Indian landowners.
This Project is designed to create administrative tools and legal entities that will enable landowners in
Indian Country to escape the future imposed by the American Indian Probate Reform Act of 2004
(AIPRA) and avoid probate through the Office of Hearing and Appeals (OHA). This may require some
amount of legislative and regulatory change, and necessitate adaptation of tribal law to create and
recognize the necessary administrative tools and legal entities. This will provide landowners with tools
and flexibility they need to make their own choices about what to do with their land.
The primary issues that need to be addressed by this Project include:

Preservation of Indian status for property

Probate and ownership
Management of trust resources
Taxation of potential revenues
Owner/federal trust responsibility standards

The Indian Land Tenure Foundation will implement this Project by recruiting families, allotment coowners, and communities to create FCMEs. Project landowners will receive support from ILTF, the
Indigenous Agriculture and Food Initiative, and the Federal government as they work toward their
individual and collective goals.

Implementation Plan
Nearly 250,000 individual owners hold an undivided interest in title to 93,500 allotted tracts of trust land
on 150 reservations. This situation makes it nearly impossible for the impacted landowners and their
Indian communities to put the land to effective economic use. The Family/Co-Owner Management
Project is designed to help a portion of these owners by delivering understandable, cost-effective tools for
the management of their reservation lands. Ultimately, the Project seeks to dramatically slow the
continued fractionation of trust land title and decrease the number of unique owners managing Indian
lands.
A Family/Co-Owner Management Entity (FCME) can be a practical way for allottees to manage their
land within the complex web of undivided interests. The purpose of these FCMEs is to allow landowners
to maintain their legal rights and the privileges of property ownership (beneficial interest). The allottees
still retain the right to possession, to collect rent, mortgage the property, and retain any other benefit he or
she has now, but by creating a formal structure, all land-related actions are simplified. The simplified
decision making permitted by these entities may allow the land to be more productive, perhaps even
simplifying the probate process at the same time.
ILTF is working to identify potential models for the launch of FCMEs for Indian landowners. The
Foundation will recruit families and other groups of co-owners who are interested in and committed to
exploring an FCME for management of their reservation land interests. The Foundation will develop
workshop materials to guide participants through the process, and offer facilitated decision-making to
workshop attendees. This will enable each FCME representative to carefully consider his or her options
and inform family members and other interest holders of potential implications for trust land owners.
Land tenure can be defined as the historic, customary and legally defined relationships people have with
land. (A list of various formal entities is provided in the Appendix.) Potential family and co-owner groups
will need to attend a local one-day workshop that introduces the concepts of Indian land tenure specific to
allotted lands. The Project Team will coordinate initial meetings and workshops which will conclude by
creating a localized implementation plan for the development of a personalized FCME. Each FCME will
receive direct legal assistance from licensed attorneys and ongoing support from the Project Manager.
More groups of participants will be recruited throughout the project.
ILTF will produce a formal written evaluation and FCME Development Series materials, and preliminary
Rule Making will be created for review by the Secretary of the Interior. When the Project concludes,
ILTF will have held educational trainings in reservation communities across the country, facilitated the
creation of FCMEs that consolidate management of reservation lands and reduce administrative costs, and
will have produced data and reports detailing the effectiveness of these innovative tools for Indian people.
The Projects long-range goals are to:
1. Assist in the creation of multiple Family/Co-Owner Management models, evaluate the success of
each model and promote successful models on allotted reservations.
2. Substantially address fractionated title on allotted trust lands
3. Allow relatives and unrelated co-owners to consolidate and jointly manage their trust land
4. Change the perspective of how land can be efficiently and effectively managed in Indian Country

Objectives
1. Originate and provide technical assistance for the operation of 15 completed Family/Co-Owner
Management Entities in three years
2. Create five different Family/Co-Owner Management models in five years
3. Provide 50 educational trainings within five years on how to develop an appropriate Family/CoOwner Management Entity
4. Evaluate the success of formal management of Indian trust lands within five years.

Evaluation
ILTF is committed to thorough evaluation of the Projects methods and activities to ensure the best
possible outcome a proven, effective Family/Co-Owner Management Entity (FCME) that can be
replicated on reservations across the country. Data and feedback will be collected from participants
throughout the course of the Project.
ILTF uses the Meridia Interactive Solutions real-time, anonymous audience response system to gather the
thoughts, opinions and knowledge of those who attend workshops and trainings. This is a highly effective
tool for increasing participant engagement and measuring effectiveness in delivering results. Because of
the sensitive nature of topics involved family, land, inheritance and the like many participants may be
apprehensive about sharing private information. This technology helps to remove some of the associated
anxiety and enables ILTF to gather accurate data.
As FCME representatives make progress in the development of their entities, ILTF staff will be in regular
communication with these individuals to track progress, learn about challenges encountered along the
way, and consider modifications to the process that will help participants be more successful. An
independent professional evaluator will also be employed to measure the impact of Project activities
among FCME participants, the federal government and tribal land offices. This independent evaluation
will be combined with those conducted by the Project Team to produce a detailed report highlighting best
practices, lessons learned and next steps in the management of reservation trust lands through FCMEs.

Sustainability
ILTF anticipates that the Project will generate several sustainable models for effective land management
in Indian Country. The point is not to shift federal trust responsibilities to individual Indian people who
act through FCME representatives. Rather, the Project should create options that streamline management,
and limit the number of stakeholders, in ways not available to the federal government.
If the FCME model is to be successful, landowners will need to see an increase in benefits that offset the
costs of managing the entity. These benefits can be achieved by the enhanced speed and efficiency of
launching income-generating activities on the land, such as harvesting timber, residential or commercial
development, leasing the property or natural resource extraction. At the same time, federal and tribal
government administrative time and expense will be significantly reduced because there will be one point
of contact the FCME representative rather than countless landowners who need to be consulted at
every stage of the process. This combination makes FCMEs a practical, sustainable long-term solution.

Capability
Indian Land Tenure Foundation (ILTF) is a public community foundation that serves landowners and
tribes nationally in matters related to Indian land ownership and management. ILTF has offered
assistance, training and educational resources to landowners and tribal nations for more than a decade,
and is a recognized leader within the Indian community as a source of practical information and model
programs in Indian land ownership and management. The Foundation has invested nearly $30 million
dollars and worked with more than 200 tribes over the last 14 years.
ILTFs mission is that: Land within the original boundaries of every reservation and other areas of high
significance where tribes retain aboriginal interest are in Indian ownership and management. The
project addresses three of the four strategies ILTF uses in advancing its mission: 1) Education, 2)
Economic Opportunity, and 3) Legal Reform. (The fourth strategy Cultural Awareness is not a
primary focus of this Project.)
ILTF President Cris Stainbrook and Program/Development Officer Jim Wabindato are well-equipped to
lead the Family/Co-Owner Management Project. Wabindato (Little River Band Ottawa), who joined ILTF
in early 2014, will oversee the Project and work closely with other ILTF staff to ensure recruitment,
outreach and ongoing technical assistance occurs throughout landowner project development and
implementation.
Stainbrook (Oglala Lakota) has been working in Indian land and natural resource issues for nearly 30
years and has been president of ILTF since its inception in 2002. As the Foundations president,
Stainbrook provides leadership, strategic direction, management, fundraising and policy oversight to the
organization with an emphasis on the successful implementation of the Foundations mission. Stainbrook
has worked in philanthropy for 25 years. He was a founding member of Native Americans in Philanthropy
and served on the board of directors for 11 years.

APPENDIX

PROJECT PLANNING & ORGANIZING ISSUES

Organizing Values

APPENDIX
The set of principles upon which the organization is founded plays are large part in the development
of the ownership and membership structure of each Family/Corporate Trust (FCT). Every FCT
must strike its own balance between the cultural and economic value that is placed upon the land on
the way toward allowing beneficial use. The ILTF seeks situations where allotment title holders
firmly believe that usage of the land takes precedence over modern concepts of ownership/control.
Assorted Values
- The Land is the People
o Family Ties
o Cultural Ties
o Historic Preservation
- Singular vs. Collective Benefit
- Environmental Stewardship
- Commercial Development
- Profit Distribution
- Trust Responsibility
- Tribal Jurisdiction
Land Uses
Generally there are seven predominant uses for Indian land. They are:
- Cultural/Spiritual
- Agricultural
- Forestry
- Grazing
- Residential*
- Commercial*
- Mineral Extraction*
* These land uses are given special notation to recognize that they make substantial
permanent changes to the character of the land.
We would also consider environmental remediation as a potential future use that may involve
several other land uses simultaneously.
Legal, Operations, Management
This is a beginning list of issues that need to be addressed by the FCTs if a joint-ownership
organization is going to be successful
- Legal Structure
- Voting and/or Advising
- Membership
- Inheritance
- Separation (& just compensation)
o Voluntary
o Involuntary
- Inclusion of Owner-Managed Interests 25 USC, Ch. 24, 2220; Transactional Ease
- Signing Authority
- Distribution of Proceeds
- Partition & Assemblage
- Management cost/Fees/Dues

APPENDIX

25 USC, Chapter 24, 2206

Indian Land Consolidation
(l) Pilot project for the management of trust assets of Indian families and relatives
(1) Development pilot project
The Secretary shall consult with tribes, individual landowner organizations, Indian advocacy
organizations, and other interested parties to
(A) develop a pilot project for the creation of legal entities such as private or family trusts,
partnerships corporations, or other organizations to improve, facilitate, and assist in the
efficient management of interests in trust or restricted lands or funds owned by Indian
family members and relatives; and
(B) develop proposed rules, regulations, and guidelines to implement the pilot project,
including
(i) the criteria for establishing such legal entities;
(ii) reporting and other requirements that the Secretary determines to be appropriate
for administering such entities; and
(iii) provisions for suspending or revoking the authority of an entity to engage in
activities relating to the management of trust or restricted assets under the pilot
project in order to protect the interests of the beneficial owners of such assets.
(2) Primary purposes; limitation; approval of transactions; payments by Secretary
(A) Purposes
The primary purpose of any entity organized under the pilot project shall be to improve,
facilitate, and assist in the management of interests in trust or restricted land, held by 1 or
more persons, in furtherance of the purposes of this chapter.
(B) Limitation
The organization or activities of any entity under the pilot project shall not be construed to
impair, impede, replace, abrogate, or modify in any respect the trust duties or responsibilities
of the Secretary, nor shall anything in this subsection or in any rules, regulations, or
guidelines developed under this subsection enable any private or family trustee of trust or
restricted interests in land to exercise any powers over such interests greater than that held
by the Secretary with respect to such interests.
(C) Secretarial approval of transactions
Any transaction involving the lease, use, mortgage or other disposition of trust or restricted
land or other trust assets administered by or through an entity under the pilot project shall be
subject to approval by the Secretary in accordance with applicable Federal law.
(D) Payments
The Secretary shall have the authority to make payments of income and revenues derived
from trust or restricted land or other trust assets administered by or through an entity
participating in the pilot project directly to the entity, in accordance with requirements of the
regulations adopted pursuant to this subsection.

APPENDIX
(3) Limitations on pilot project
(A) Number of organizations
The number of entities established under the pilot project authorized by this subsection shall
not exceed 30.
(B) Regulations required
No entity shall commence activities under the pilot project authorized by this subsection
until the Secretary has adopted final rules and regulations under paragraph (1)(B).
(4) Report to Congress
Prior to the expiration of the pilot project provided for under this subsection, the Secretary shall
submit a report to Congress stating
(A) a description of the Secretarys consultation with Indian tribes, individual landowner
associations, Indian advocacy organizations, and other parties consulted with regarding
the development of rules and regulations for the creation and management of interests
in trust and restricted lands under the pilot project;
(B) the feasibility of accurately monitoring the performance of legal entities such as those
involved in the pilot project, and the effectiveness of such entities as mechanisms to
manage and protect trust assets;
(C) the impact that the use of entities such as those in the pilot project may have with
respect to the accomplishment of the goals of this chapter; and
(D) any recommendations that the Secretary may have regarding whether to adopt a
permanent program as a management and consolidation measure for interests in trust
or restricted lands.