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Heirs property, or heirs' property, refers to property that is passed between generations of family members without the involvement of local probate courts, without a will or formal estate strategy. [1] Heir property is commonly viewed as an unstable form of ownership, since co-owners often have limited rights over the property. [2]
Heirs Property occurs when a deceased person's heirs or will beneficiaries become owners of property (also known as real property) as tenants in common. [3] When a property is probated, a deceased person either has a will and the property is passed on to the named beneficiary, or a deceased person dies intestate, without a will, and the property could be split among multiple heirs who become cotenants. [4] If the probate court enters an order of distribution, or if the estate administrator signs a deed, the ownership passes formally. Heirs property cases typically occur because a person dies without a will and the family members do not get the probate courts involved, making the property part of the intestate estate which will be distributed according to state guidelines. [5] Over time, the number of heirs can increase making it difficult for the property to be sold or divided in the future. [5]
One of the biggest problems heirs property owners face are how the property is shared among heirs and how it will be divided or sold in the future. Tenancy in common, a method of owning property, allows each person designated as a tenant in common to own an undivided interest in the whole property, with no limit as to how many tenants in common may also have an interest in the whole property at issue. [6] Properties passed to heirs who become tenants in common may devalue over time because of how divided the property can become, which can impact future generations of heir property owners. [4] Other issues which can arise under tenancy in common include the right for each tenant to sell their share without the permission of other cotentants and the right of any cotenant to file a lawsuit requesting the property be partitioned by sale and forcibly sold. [3] Partition by sale is a court remedy used when a parcel of land cannot be physically divided, and the proceeds for the sale are distributed proportionally among the cotenants. [7] Cotenants can request another remedy, partition in kind, which would split the property into parcels proportionate to the shares each cotenant has. [3] Partition by sale are more common than partitions by kind due to the economic benefit they pose to the cotenants. [3]
Another issue facing those with shares in heirs property is the fact that the title to the property is rarely ever "clear". [5] This means that the deed for the property may not contain all of the cotenants, or it may even list the deceased property owner still. [8] This can pose difficulty for cotenants to access resources like loans, FEMA assistance in the event of a natural disaster, or other state and federal programs. [5]
Beginning in the 1950's state courts began overriding the stated preference for partition in kind, instead favoring partition by sale. Although more convenient for courts, this had the effect of allowing one fractional owner, often a distant family member without a connection to the land, to force a sale against the wishes of all other owners. This has led to a loss of land ownership, a key way to build familial wealth, especially impacting poor communities and communities of color. [9]
In 2010, the Uniform Law Commission drafted a model Uniform Partition of Heirs Property Act. As of 2024, the Uniform Partition of Heirs Property Act has been enacted in 23 states and territories and introduced in an additional 6 states. [10] Among other things, it requires improved procedures for serving notice on heirs and determining fair market value if the co-owners of the property are unable to agree. [11] The purpose of the Act is to prevent partition by sale to the fullest extent possible while there are some cotenants who still wish to live on the land while other cotenants may wish to sell the property. [3] The UPHPA outlines three reforms to the law of partition sales in order to address the process of these sales in practice: [1]
As stated in the UPHPA, heirs property is defined as:
The values of 20% are not established values, but were likely chosen by the drafters of the UPHPA in an attempt to define parameters for heirs property for the purpose of the Act. [13]
State | Status of Legislation | Year of Enactment | Bill Number | Title of Bill |
---|---|---|---|---|
Nevada | Enacted | 2011 | AB 244 | Enacts the Uniform Partition of Heirs Property Act [14] |
Georgia | Enacted | 2012 | HB 744 | Uniform Partition of Heirs Property Act [15] |
Montana | Enacted | 2013 | SB 207 | Adopt Uniform Partition of Heirs Property Act [16] |
Alabama | Enacted | 2014 | SB 162 | Property, Alabama Uniform Partition of Heirs Property Act, created [17] |
Arkansas | Enacted | 2015 | HB 1245 | An Act to Enact the Uniform Partition of Heirs Property Act; To Make Related Technical Corrections; and for Other Purposes [18] |
Connecticut | Enacted | 2015 | SB 900 | An Act Concerning the Adoption of the Uniform Partition of Heirs' Property Act and Estates Given in Fee Tail [19] |
Hawaii | Enacted | 2016 | SB 2408 | Real Property; Partition; Heirs' Property; Uniform Partition of Heirs Property Act [20] |
South Carolina | Enacted | 2016 | HB 3325 | Uniform Partition of Heirs Property Act [21] |
New Mexico | Enacted | 2017 | HB 181 | Uniform Partition of Heirs Property Act [22] |
Texas | Enacted | 2017 | SB 499 | Relating to the adoption of the Uniform Partition of Heirs' Property Act [23] |
Iowa | Enacted | 2018 | SF 2175 | A bill for an act relating to partition of property in kind and partition of property by sale [24] |
Illinois | Enacted | 2019 | HB 3677 | Uniform Partition of Heirs Property Act [25] |
Missouri | Enacted | 2019 | SB 83 | Modifies provisions relating to court proceedings (note: a section of this bill codifies the Heirs Property Act) [26] |
US Virgin Islands | Enacted | 2019 | 32-0327 | US Virgin Islands Code Title 28 - Property Chapter 21 - Actions for Partition of Real Property § 451. Right to maintain action for partition [27] |
Florida | Enacted | 2020 | SB 580 | Uniform Partition of Heirs Property Act [28] |
Mississippi | Enacted | 2020 | SB 2553 | Uniform Partition of Heir Property Act [29] |
New York | Enacted | 2020 | SB 4865 | Establishes the uniform partition of heirs property act which supplements the general partition statute and governs actions to partition heirs property [30] |
Virginia | Enacted | 2020 | HB 1605 | Partition of property; in partition actions the court shall order an appraisal of property [31] |
California | Enacted | 2021 | AB 633 | Partition of real property: Uniform Partition of Heirs Property Act [32] |
Maryland | Enacted | 2022 | SB 92/HB 777 | Real Property - Partition of Property [33] |
Utah | Enacted | 2022 | HB 120 | Uniform Partition of Heirs' Property Act [34] |
District of Columbia | Enacted | 2023 | B24-0156 | Uniform Partition of Heirs Property Act of 2021 (aka Partition of Real Property Act of 2022) [35] |
Washington | Enacted | 2023 | SB 5005 | Concerning real property [36] |
Arizona | Introduced | 2024 | HB 2521 | Partition; property; inheritance (note: if passed, will likely be titled Uniform Partition of Heirs Property Act) [37] |
Kansas | Introduced | 2024 | HB 2693 | Enacting the uniform partition of heirs property act to prescribe procedures and requirements for partition of certain real property (note: if passed, this Bill may have a different title) [38] |
Massachusetts | Introduced | 2024 | H 1744/ S 2560 | An Act Relative to Uniform Partition of Heirs Property (note: if passed, this Bill may have a different title) [39] |
Michigan | Introduced | 2024 | HB 4924 | Revised judicature act of 1961 (note: if passed, this Bill may have a different title) [40] |
New Jersey | Introduced | 2024 | S 1400 | Uniform Partition of Heirs Property Act (note: if passed, this Bill may have a different title) [41] |
North Carolina | Introduced | 2024 | H 588/S 548 | Uniform Partition of Heirs Property Act (note if passed, this Bill may have a different title) [42] |
The Agricultural Improvement Act of 2018 (aka the 2018 Farm Bill) was signed into law on December 20, 2018. [43] This bill required the USDA's Farm Service Agency to develop rules allowing heirs' property owners to obtain a farm and tract number, even with cloudy property title. [1] § 12615 of the Agricultural Improvement Act of 2018 delineates the eligibility requirements for operators of heir property land to obtain a farm number in states where the Uniform Partition of Heirs Property Act was enacted. [44] These requirements include:
Farm numbers will be allotted so long as any of the above documentation is submitted by the farm operator to demonstrate their control of the land as a farm. [44] By establishing a farm number, heirs property owners will be eligible for several programs and provisions established by the USDA including: targeted funding through farm loans, crop insurance benefits, and conservation program benefits. [45]
Additionally, the Farm Bill established the Heirs' Property Relending Program with the purpose of solving land ownership and succession issues on agricultural land. [46] The process for participating in the program is as follows:
In September 2021, FEMA developed guidelines for its agents to accept heirs' property documentation to qualify for disaster relief. [47] Traditionally, FEMA accepts property deeds or titles, mortgage payment booklets, property tax receipts, property tax bill, or real property structure insurance. [48] Now, FEMA will also accept a Will or Affidavit or heirship along with the death certificate of the decendent, which names the person seeking assistance as the heir to the property. [49] Documentation can be dated up to a year before the disaster or within 18 months of assistance following a disaster [48] If an heir has to self-certify their claim to a property because the property is considered to be heirs property, the statement must include the following information:
This change in FEMA policy will benefit families who are in possession of heirs property, especially in the South. [50] In Black-majority counties impacted by natural disasters, research has demonstrated more than a third of applicants have been denied due to having cloudy title issues on heirs property they have inherited. [50]
Historically, African Americans have more commonly let land become heirs’ property, due to a combination of factors, including a lack of access to government services and a distrust of the legal system brought on by systemic discrimination. [51] The legal costs involved in preparing an estate plan may also deter some families from creating one. [52] According to the United States Department of Agriculture, since 1910, the heir property system has been responsible for African American landowners losing 80% of the farming land owned by previous generations. [53] [54] In 1910, 16 million acres were operated by African American farmers, or 14% of farms. In 2023, under 3 million acres are operated African American farmers and 1.5% of farms. [1] Additional communities impacted by heirs property issues include Native American communities and rural, low-income communities in Appalachia.
However, the prevalence of heir property in some communities may also reflect a personal preference for informal, communal management of land. In African-American communities in the South, conflicts resulting from disagreements between heirs may arise common when one or more heirs do not live on the property. For individuals who still live on the property and collectively abide by informal rules of property management, heir property may have fewer risks. [55]
Within the Southern United States, about a third of the land owned by African Americans, amounting to about 3.5 million acres, is held in the heirs property system. [51] Arkansas, Mississippi, Alabama, Georgia, South Carolina, Texas, North Carolina, Virginia, Florida, and Louisiana are the states most affected by the confusion of heirs' property. [53]
In Georgia, a 2017 study by the USDA and the Carl Vinson Institute of Government determined that 11-25% of parcels in every Georgia county are probable heirs property. The total tax-appraised value of probable heirs property in Georgia is more than $34 billion. The negative impacts of heirs property affect families and every aspect of community including the functioning of local government, court systems, state departments, banks, businesses, and nonprofits. [56]
The Dawes Act of 1887 regulated land rights on tribal territories within the United States. Named after Senator Henry L. Dawes of Massachusetts, it authorized the President of the United States to subdivide Native American tribal communal landholdings into allotments for Native American heads of families and individuals. This would convert traditional systems of land tenure into a government-imposed system of private property by forcing Native Americans to "assume a capitalist and proprietary relationship with property" that did not previously exist in their cultures. Before private property could be dispensed, the government had to determine which Indians were eligible for allotments, which propelled an official search for a federal definition of "Indian-ness".
Intestacy is the condition of the estate of a person who dies without having in force a valid will or other binding declaration. Alternatively this may also apply where a will or declaration has been made, but only applies to part of the estate; the remaining estate forms the "intestate estate". Intestacy law, also referred to as the law of descent and distribution, refers to the body of law that determines who is entitled to the property from the estate under the rules of inheritance.
In property law, title is an intangible construct representing a bundle of rights in (to) a piece of property in which a party may own either a legal interest or equitable interest. The rights in the bundle may be separated and held by different parties. It may also refer to a formal document, such as a deed, that serves as evidence of ownership. Conveyance of the document may be required in order to transfer ownership in the property to another person. Title is distinct from possession, a right that often accompanies ownership but is not necessarily sufficient to prove it. In many cases, possession and title may each be transferred independently of the other. For real property, land registration and recording provide public notice of ownership information.
A deed is a legal document that is signed and delivered, especially concerning the ownership of property or legal rights. Specifically, in common law, a deed is any legal instrument in writing which passes, affirms or confirms an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions, sealed. It is commonly associated with transferring (conveyancing) title to property. The deed has a greater presumption of validity and is less rebuttable than an instrument signed by the party to the deed. A deed can be unilateral or bilateral. Deeds include conveyances, commissions, licenses, patents, diplomas, and conditionally powers of attorney if executed as deeds. The deed is the modern descendant of the medieval charter, and delivery is thought to symbolically replace the ancient ceremony of livery of seisin.
An executor is someone who is responsible for executing, or following through on, an assigned task or duty. The feminine form, executrix, may sometimes be used.
Natural Resources Conservation Service (NRCS), formerly known as the Soil Conservation Service (SCS), is an agency of the United States Department of Agriculture (USDA) that provides technical assistance to farmers and other private landowners and managers.
In common law jurisdictions, probate is the judicial process whereby a will is "proved" in a court of law and accepted as a valid public document that is the true last testament of the deceased, or whereby the estate is settled according to the laws of intestacy in the state of residence of the deceased at time of death in the absence of a legal will.
The Uniform Law Commission (ULC), also called the National Conference of Commissioners on Uniform State Laws, is a non-profit, American unincorporated association. Established in 1892, the ULC aims to provide U.S. states with well-researched and drafted model acts to bring clarity and stability to critical areas of statutory law across jurisdictions. The ULC promotes enactment of uniform acts in areas of state law where uniformity is desirable and practical. The ULC headquarters are in Chicago, Illinois.
In property law, a concurrent estate or co-tenancy is any of various ways in which property is owned by more than one person at a time. If more than one person owns the same property, they are commonly referred to as co-owners. Legal terminology for co-owners of real estate is either co-tenants or joint tenants, with the latter phrase signifying a right of survivorship. Most common law jurisdictions recognize tenancies in common and joint tenancies.
A partition is a term used in the law of real property to describe an act, by a court order or otherwise, to divide up a concurrent estate into separate portions representing the proportionate interests of the owners of property. It is sometimes described as a forced sale. Under the common law, any owner of property who owns an undivided concurrent interest in land can seek such a division. In some cases, the parties agree to a specific division of the land; if they are unable to do so, the court will determine an appropriate division. A sole owner, or several owners, of a piece of land may partition their land by entering a deed poll.
In real estate business and law, a title search or property title search is the process of examining public records and retrieving documents on the history of a piece of real property to determine and confirm property's legal ownership, and find out what claims or liens are on the property. A title search is also performed when an owner wishes to sell mortgage property and the bank requires the owner to insure this transaction.
Cestui que is a shortened version of "cestui a que use le feoffment fuit fait", lit. 'the person for whose use/benefit the feoffment was made'; in modern terms, it corresponds to a beneficiary. It is a Law French phrase of medieval English invention, which appears in the legal phrases cestui que trust, cestui que use, or cestui que vie. In contemporary English the phrase is also commonly pronounced "setty-kay" or "sesty-kay". According to Roebuck, Cestui que use is pronounced. Cestui que use and cestui que trust are often interchangeable. In some medieval documents it is seen as cestui a que. In formal legal discourse it is often used to refer to the relative novelty of a trust itself, before that English term became acceptable.
In response to court action in a number of states, the United States federal government and a number of state legislatures passed or attempted to pass legislation either prohibiting or allowing same-sex marriage or other types of same-sex unions.
In common-law jurisdictions, administration of an estate on death arises if the deceased is legally intestate, meaning they did not leave a will, or some assets are not disposed of by their will.
Farmland preservation is a joint effort by non-governmental organizations and local governments to set aside and protect examples of a region's farmland for the use, education, and enjoyment of future generations. They are operated mostly at state and local levels by government agencies or private entities such as land trusts and are designed to limit conversion of agricultural land to other uses that otherwise might have been more financially attractive to the land owner. Through different government programs and policy enactments farmers are able to preserve their land for growing crops and raising livestock. Every state provides tax relief through differential (preferential) assessment. Easements are a popular approach and allow the farms to remain operational. Less common approaches include establishing agricultural districts, using zoning to protect agricultural land, purchasing development rights, and transferable development rights. It is often a part of regional planning and national historic preservation. Farmland preservation efforts have been taking place across the United States, such as in Virginia, Minnesota, Maryland, Florida, and Connecticut.
A freehold, in common law jurisdictions such as England and Wales, Australia, Canada, Ireland, and twenty states in the United States, is the common mode of ownership of real property, or land, and all immovable structures attached to such land.
Hodel v. Irving, 481 U.S. 704 (1987), is a case in which the U.S. Supreme Court held that a statute ordering the escheat of fractional interests in real property which had been bequeathed to members of the Oglala Sioux tribe was an unconstitutional taking which required just compensation.
Scots property law governs the rules relating to property found in the legal jurisdiction of Scotland. As a hybrid legal system with both common law and civil law heritage, Scots property law is similar, but not identical, to property law in South Africa and the American state of Louisiana.
Gun laws in Virginia regulate the sale, possession, and use of firearms and ammunition in the Commonwealth of Virginia in the United States.
Thomas Wilson Mitchell is an American law professor. He is a professor at Boston College Law School. His work focuses on property law, particularly the legal doctrines that have caused Black Americans to lose millions of acres of land since the early 1900s. Mitchell was a 2020 MacArthur Fellow. Recently, he founded and became Director of the Initiative on Land, Housing & Property Rights alongside his wife, Professor Lisa T. Alexander, at Boston College Law School.
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