{"id":995,"date":"2021-02-22T11:30:16","date_gmt":"2021-02-22T16:30:16","guid":{"rendered":"http:\/\/blog.richmond.edu\/pilr\/?p=995"},"modified":"2021-02-22T12:23:21","modified_gmt":"2021-02-22T17:23:21","slug":"heirs-property-what-is-it-and-how-do-we-fix-it","status":"publish","type":"post","link":"https:\/\/blog.richmond.edu\/pilr\/2021\/02\/22\/heirs-property-what-is-it-and-how-do-we-fix-it\/","title":{"rendered":"Heirs Property: What is it and how do we fix it?"},"content":{"rendered":"

Heirs Property: What is it and how do we fix it? <\/u><\/strong><\/p>\n

Authored by: Natalie King, staff editor<\/em><\/u><\/p>\n

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\u201cHeirs property<\/em>\u201d<\/strong> is noted as \u201cone of the worst problem[s] you [have] never heard of.”[1]<\/a> \u00a0Lately it has been given significant attention from the Black Lives Matter movement.[2]<\/a><\/p>\n

Specifically, the term is used to describe when heirs lack title to property that has been passed down from generation to generation \u201cwithout a will or estate plan.\u201d[3]<\/a>\u00a0 Furthermore, each heir shares a portion of the property\u2019s title, but due to lapses in the chain of title, (because the decedent did not leave a will or estate plan,) oftentimes real estate developers buy the entire property well below market value.[4]<\/a><\/p>\n

This is because if there are multiple heirs to the property and one heir wants to sell her share, \u00a0sometimes dividing the land into separate portions is not feasible; thus, one heir may cause the entire property to a forced partition sale, which more likely than not is sold at a rich discount, amounting to less than the property\u2019s fair market value.[5]<\/a>\u00a0 This process causes heirs to be divested of their property due to a forced partition sale, which would not otherwise occur if there was a clear chain of title, such as property passed down via will or other estate plan.[6]<\/a><\/p>\n

This process has definite racial impacts.\u00a0 Because African Americans have low rates of estate planning compared to White Americans, African Americans are less likely to evade the problems associated with heirs property.[7]<\/a>\u00a0 As a result, the laws of intestate succession are quick to systematically disenfranchise and divest African Americans of their inheritances that otherwise would be protected had they adopted an estate plan.[8]<\/a> \u00a0For that reason, many states have begun to notice this issue and have adopted the Uniform Partition of Heirs Property Act in an effort repair the consequences attributed to heirs property.<\/p>\n

The Uniform Partition of Heirs Property Act (\u201cUPHPA\u201d) or (\u201cthe Act\u201d) aims to modify partition law to address the problem that many African Americans\u2014in particular\u2014have experienced with property loss.[9]<\/a><\/p>\n

The UPHPA is grounded in three major reforms to provide more equity when property is subject to partition.[10]<\/a>\u00a0 First, if the court finds that the property is subject to partition, the cotenants have a right of first refusal, which grants the cotenant(s) that did not seek to have the property partitioned the first opportunity to buyout the partitioning cotenant\u2019s interest.[11]<\/a>\u00a0 This is a significant shift in partition law, because now real estate developers do not have the first opportunity to buy the property subject to partition. \u00a0Heirs to the property are first in line, which gives them greater protections to keep the property in the family tree and prevents forced sales at the outset.[12]<\/a><\/p>\n

Secondly, the Act calls for a clear preference to partition in kind rather than partition in sale.[13]<\/a> \u00a0The Act requires the court to consider economic and non-economic factors before partition such as: (1) whether the property has \u201csentimental, cultural, or historical value;\u201d (2) whether one of the cotenants to the property would be homeless; and (3) whether the property has economic value that would make it worth more if sold by parcels or sold as a whole.[14]<\/a>\u00a0 Because these factors weigh in favor for the court to partition the property in kind rather than by sale, heirs property owners can rest assured that the court will consider more than the mere economic value of the property before making its determination.[15]<\/a><\/p>\n

Lastly, the Act revamped partition procedures.[16]<\/a>\u00a0\u00a0 The preferred method of partition is now an \u201copen market\u201d sale instead of an auction sale.[17]<\/a>\u00a0 These sales aim to maximize the amount of wealth the heir can maintain from the property should the court order partition.[18]<\/a><\/p>\n

To date, 18 states have enacted the UPHPA\u2014including Virginia.[19]<\/a>\u00a0 However, these protections are not enough.\u00a0 Due to the heightened risks of partition in the South where heirs property is most commonly found, nonprofits and law firm pro-bono initiatives play a crucial role in the fight against heirs property and forced partition.[20]<\/a>\u00a0 Some suggest that policy makers should consider statutory protections that lower or waive legal fees to allow low-income families to have access to estate planning resources.[21]<\/a>\u00a0 Nevertheless, the inequality gap perpetuates the problem of heirs property, and if adequate access to estate planning resources were available to those most vulnerable to partition\u2014notably, African Americans\u2014it can help property owners avoid these problems all-together.<\/p>\n

In conclusion, the Black Lives Matter movement and states adoption of the UPHPA has provided national attention to the \u201cBlack Lands Matter\u201d movement, which highlights that Black inequalities stem far greater than what one may naturally think.<\/p>\n

Heirs property, while unstable, is<\/em> a force that can be reckoned with.\u00a0 State legislatures, nonprofits, and law firm pro-bono services hold the power to expand property protections provided by the UPHPA, and if done, I argue that this has the potential to lower the inequality gap, and add even more validity, reliability, and accountability within the partition process.<\/p>\n

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[1]<\/a> See<\/em> Lizzie Presser, The Reels Brothers Spent Eight Years in Jail for Refusing to Leave It<\/em>, ProPublica (July 15, 2019), https:\/\/features.propublica.org\/black-land-loss\/heirs-property-rights-why-black-families-lose-land-south\/ [hereinafter Presser<\/em>].<\/p>\n

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[2]<\/a> Michelle Chen, Black Lands Matter: The Movement to Transform Heirs\u2019 Property Laws<\/em>, The nation, https:\/\/www.thenation.com\/article\/archive\/heirs-property-reform\/ (last visited Feb. 17, 2020).<\/p>\n

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[3]<\/a> What is Heirs Property?<\/em>, Heirs\u2019 Prop. Retention Coalition, http:\/\/hprc.southerncoalition.org\/?q=node\/5 (last visited Jan. 28, 2021).<\/p>\n

[4]<\/a> See<\/em> April Simpson, New Laws Help Rural Black Families Fight for Their Land<\/em>, Pew Res. Ctr., (June 18, 2019) https:\/\/www.pewtrusts.org\/en\/research-and-analysis\/blogs\/stateline\/2019\/06\/18\/new-laws-help-rural-black-families-fight-for-their-land.<\/p>\n

[5]<\/a> Id.<\/em><\/p>\n

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[6]<\/a> See<\/em> Lizzie Presser, How to Close Heirs Property Loopholes, Propublica, (July 15, 2019), https:\/\/www.propublica.org\/article\/what-can-heirs-property-owners-do-to-protect-their-land-loss.<\/p>\n

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[7]<\/a> Id. <\/em><\/p>\n

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[8]<\/a> Id.<\/em><\/p>\n

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[9]<\/a> Restoring Hopes for Heirs Property Owners: The Uniform Partition of Heirs Property Act<\/em>, a.b.a., (Oct. 1, 2016), https:\/\/www.americanbar.org\/groups\/state_local_government\/publications\/state_local_law_news\/2016-17\/fall\/restoring_hope_heirs_property_owners_uniform_partition_heirs_property_act\/ [hereinafter Restoring Hopes<\/em>].<\/p>\n

\u00a0<\/em><\/p>\n

[10]<\/a> Id. <\/em><\/p>\n

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[11]<\/a> Id. <\/em><\/p>\n

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[12]<\/a> Preserving wealth with Uniform Partition Heirs\u2019 Property Act<\/em>, Jacksonville Bar Association, (Sept. 3, 2020), https:\/\/www.jaxdailyrecord.com\/article\/preserving-wealth-with-uniform-partition-heirs-property-act.<\/p>\n

[13]<\/a> See<\/em> Restoring Hopes<\/em>, supra <\/em>note 9.<\/p>\n

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[14]<\/a> \u00a0See<\/em> Restoring Hopes<\/em>, supra <\/em>note 9.<\/p>\n

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[15]<\/a> See<\/em> Restoring Hopes<\/em>, supra <\/em>note 9.<\/p>\n

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[16]<\/a> See<\/em> Restoring Hopes<\/em>, supra <\/em>note 9.<\/p>\n

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[17]<\/a> See<\/em> Restoring Hopes<\/em>, supra <\/em>note 9.<\/p>\n

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[18]<\/a> See<\/em> Restoring Hopes<\/em>, supra <\/em>note 9.<\/p>\n

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[19]<\/a> 2010 Partition of Heirs Property Act, Uniform L. Commission https:\/\/www.uniformlaws.org\/committees\/community-home?CommunityKey=50724584-e808-4255-bc5d-8ea4e588371d (last visited Feb. 6, 2020).<\/p>\n

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[20]<\/a> See<\/em> Carey L. Biron, Will power: Could property inheritance help close U.S. \u2018wealth gap\u2019<\/em>?, Reuters (Nov. 12, 2019), https:\/\/www.reuters.com\/article\/us-usa-homes-inheritance\/will-power-could-property-inheritance-help-close-u-s-wealth-gap-idUSKBN1XM17S (noting that more is needed to avoid heirs property problems entirely, and although not directly stated, one of these solutions could be increasing firm pro-bono initiatives for owners of heirs property to have better access to estate planning legal services).<\/p>\n

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[21]<\/a> Id<\/em>.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Heirs Property: What is it and how do we fix it? Authored by: Natalie King, staff editor \u201cHeirs property\u201d is noted as \u201cone of the worst problem[s] you [have] never heard of.”[1] \u00a0Lately it has been given significant attention from the Black Lives Matter movement.[2] Specifically, the term is used to describe when heirs lack title to property that has been passed down from generation … Continue reading Heirs Property: What is it and how do we fix it?<\/span><\/a><\/p>\n","protected":false},"author":4699,"featured_media":997,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-995","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"jetpack_featured_media_url":"https:\/\/blog.richmond.edu\/pilr\/files\/2021\/02\/NKing_BlogPicture.jpg","_links":{"self":[{"href":"https:\/\/blog.richmond.edu\/pilr\/wp-json\/wp\/v2\/posts\/995","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.richmond.edu\/pilr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.richmond.edu\/pilr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.richmond.edu\/pilr\/wp-json\/wp\/v2\/users\/4699"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.richmond.edu\/pilr\/wp-json\/wp\/v2\/comments?post=995"}],"version-history":[{"count":3,"href":"https:\/\/blog.richmond.edu\/pilr\/wp-json\/wp\/v2\/posts\/995\/revisions"}],"predecessor-version":[{"id":1002,"href":"https:\/\/blog.richmond.edu\/pilr\/wp-json\/wp\/v2\/posts\/995\/revisions\/1002"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.richmond.edu\/pilr\/wp-json\/wp\/v2\/media\/997"}],"wp:attachment":[{"href":"https:\/\/blog.richmond.edu\/pilr\/wp-json\/wp\/v2\/media?parent=995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.richmond.edu\/pilr\/wp-json\/wp\/v2\/categories?post=995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.richmond.edu\/pilr\/wp-json\/wp\/v2\/tags?post=995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}