By Scout Nelson
Information from the Bureau of Indian Affairs BIA explains that the ownership and transfer of Native American reservation land follow unique rules shaped by federal laws and tribal governance. One of the most important laws that shaped tribal land ownership is the General Allotment Act of 1887, also known as the Dawes Act. This law divided tribal treaty lands into smaller parcels called allotments and distributed them to registered tribal members.
Under the allotment system, the head of a family received one quarter of a section of land. Single individuals over eighteen received one-eighth of a section, while individuals under eighteen received one-sixteenth. Over time, these allotments passed to heirs and became shared among multiple owners.
Native American land generally falls into two main categories: trust land and fee land.
Trust land is held by the federal government for the benefit of a tribe or an individual Native American owner. When Trust land belongs to individuals, it is often called an allotment. Although the government holds the title, the tribe or individual still benefits from the land. Trust land is not subject to property taxes from city, county, state, or federal governments.
Trust land ownership often becomes divided among heirs after the original owner passes away. These shared interests are called undivided interests, meaning each owner holds a share of the land rather than a specific physical portion. Because of this shared structure, most financial institutions do not accept Trust land as loan collateral, though some Community Development Financial Institutions may offer financing options.
The second type of Native American land is Fee land. Fee land means the individual or tribe owns the land completely, without federal trust status. Owners of fee land can sell, gift, or transfer the land without approval from the Bureau of Indian Affairs. However, Fee land is subject to property taxes and can be used as collateral for loans.
Land ownership can also take several legal forms. Sole ownership means one person owns the land. Co ownership happens when two or more people share ownership. Co ownership can exist as tenancy in common, where each owner holds a share that can be transferred, or joint tenancy with right of survivorship, where ownership automatically passes to the surviving owner.
When a landowner dies, Trust land usually transfers according to a written will. If no will exists, the American Indian Probate Reform Act of 2004 determines how the property passes to heirs.
Because of these rules, landowners are encouraged to understand their ownership status and maintain documents such as the Individual Trust Interest Report. Proper planning ensures land passes to the next generation according to the owner’s wishes.
FAQs
- What is the General Allotment Act of 1887?
It is a law that divided tribal lands into smaller parcels called allotments for Native American tribal members.
- What are the two main types of Native American land?
The two main types are trust land and fee land.
Trust land is land held by the federal government for the benefit of a tribe or individual Native American owner.
Fee land is land fully owned by an individual or tribe without federal trust status.
- What law decides inheritance if a trust landowner dies without a will?
The American Indian Probate Reform Act of 2004 determines how the land passes to heirs.
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Categories: South Dakota, Government & Policy