The presentation reviewed findings from a 50-state survey sponsored by the National Ag Law Center.

By Drew Viguet
National Agricultural Law Center
U of A System Division of Agriculture

FAYETTEVILLE, Ark. — “Heirs property” situations can result in economic and property loss, and families that find themselves in such situations need to know what methods are available to resolve it.

“Identified heirs properties are conservatively valued at over $32 billion in the U.S.,” Jill Apter, National Ag Law Center research fellow and law student at Michigan State University, said. “This issue should concern us all.”

In an heirs property situation, a landowner has passed away “intestate,” or without a will or estate plan, and equal ownership of the property passes to the heirs. Or, there was an estate plan which left everything equally to the heirs.

“With tenancy in common property, which is the root of the problem with heirs property, each owner of the property has the right to possess an undivided interest in the whole,” said Jesse Richardson, professor of law and lead land use attorney at West Virginia University College of Law. “So, imagine a situation where you have 12, or 50, or 100 people, and they all have the right to occupy the entire property. That’s a problem, and just one of the many problems that comes along with heirs property.”

Apter noted that due to heirs property title complications, property ownership erodes and becomes destabilized.

“Heirs property owners face serious risks of property and economic loss,” she said. “They are unable to access federal aid funds after natural disasters and there’s also a high potential of partition or tax foreclosure.”

During the NALC’s Nov. 20 webinar, Apter and Richardson reviewed a survey they conducted to find what statutory options each U.S. state offers as a means of “clearing title” to resolve heirs property issues. Clearing title involves legally determining who owns the property and obtaining a marketable title.

The Heirs Property State Survey is sponsored by the NALC and available online.

To read the full news release, click here.