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WHAT IS HEIRS PROPERTY? Home or land that has been passed from generation to generation without legally documenting a designated owner The recorded deed.

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Presentation on theme: "WHAT IS HEIRS PROPERTY? Home or land that has been passed from generation to generation without legally documenting a designated owner The recorded deed."— Presentation transcript:

1 Addressing blight through heirs property remediation Veronica McClendon staff attorney

2 WHAT IS HEIRS PROPERTY? Home or land that has been passed from generation to generation without legally documenting a designated owner The recorded deed for the property is typically in the name of a deceased relative This results in “fractured” title shared among multiple family members Heirs property is created when: The owner dies with a will leaving property to multiple relatives; or The owner dies without a will so the property passes to heirs at law.

3 HEIRS PROPERTY EXAMPLE #1
Grandma owns a home and dies without a will. She is survived by her husband and 6 children. The property is co-owned by the 7 heirs. Grandma Amy Brad Calvin Donald Erica Frank Grandpa

4 HEIRS PROPERTY EXAMPLE #2
Grandma is survived by her husband and 4 of their children. The 2 other children died before grandma and did not have wills. But each of grandma’s deceased children were survived by 3 children. The property is co-owned by 11 heirs. Grandma Amy Alex Amanda Alvin Brad Calvin Donald Erica Frank Fred Felicia Felicity Grandpa

5 HEIRS PROPERTY EXAMPLE #3
Grandma is survived by her husband and their 6 children. 2 children died after Grandma and did not have wills. Each deceased child was survived by 3 children and 1 spouse. The property is now co-owned by 13 people. Grandma Amy Alex Amanda Alvin Alex, Sr. Brad Calvin Donald Erica Frank Fred Felicia Felicity Jane Grandpa

6 WHAT ARE THE IMPLICATIONS FOR COMMUNITIES?
Many blighted properties are abandoned heirs property Status makes it difficult for cities to identify owners and enforce code ordinances and collect property taxes Heirs property is a contributing factor to the decrease in owner- occupied homes Heirs property hinders efforts to increase affordable housing and family stability Communities can lose funding for revitalization efforts if heirs property is pervasive

7 WHAT ARE THE IMPLICATIONS FOR THE HEIRS?
Face increased risk of forced sale and eviction Cannot sell or mortgage property without agreement of all heirs Cannot qualify for rehab programs or secure financing for needed repairs May not qualify for loss mitigation (foreclosure prevention) programs when facing foreclosure Family relationships may be permanently ruined Can lose a connection to family history and community Can also lose the sense of freedom associated with ownership

8 HOW DOES GEORGIA HEIRS PROPERTY LAW CENTER HELP?
Nonprofit law firm originally incubated by Georgia Appleseed Center for Law and Justice The Center’s mission is to increase generational wealth, social justice and community stability by securing and preserving property rights Strategic partnerships; Direct legal services; and Education and technical assistance in the financial and legal management of land. 6 attorneys, 1 social worker, and 2 community advocates, plus a network of pro bono volunteers Offices in Atlanta, Athens, Fitzgerald, and Macon Geographic focus in Atlanta and Southwest Georgia Provide services pro bono and on a sliding fee scale based on income

9 HOW DOES THE CENTER HELP COMMUNITIES WITH HEIRS PROPERTY?
Educates community leaders and stakeholders about heirs property and its potential impact on owners and their communities Conducts title audits for neighborhoods with extensive blight to identify heirs properties and determine ownership Clears title so homeowners can participate in rehab loan programs and other revitalization efforts Positions communities to apply for and effectively utilize funding for redevelopment and historic preservation projects Work with local governments and nonprofits to provide early intervention services for properties at risk of becoming blighted

10 HOW DOES THE CENTER HELP INDIVIDUALS WITH HEIRS PROPERTY?
Many heirs want to keep their property but don’t know where to go for resources. Consults with families on the status of their property and explore solutions for securing clear, marketable title Provides direct legal representation to property owners to unlock the value in their heirs property by: Assisting heirs with probating their deceased relatives’ wills and estates Working to consolidate title into the names of 1 or 2 heirs All heirs agree to convey their interests to specific relative(s) Multiple owners could be “joint tenants with right of survivorship” or hold life estates Creating a limited liability company or trust to hold the property All heirs must transfer their interests to company or trust Must have mechanism or agreement for paying taxes and other expenses Having all heirs sign a tenancy in common agreement designating how the property can be used

11 HOW DOES THE CENTER HELP PREVENT HEIRS PROPERTY PROBLEMS?
Develops estate plans for property owners Prepares last wills and testaments directing how their property will be distributed upon their death Assists with executing advanced directives for healthcare and financial powers of attorney Heirs property owners need wills even if they only own a fractional interest in property to avoid compounding the problem. Trains clients about financial planning and management of their properties to increase their value and generate wealth now and for future generations Positions clients to access government, private sector and nonprofit programs that encourage property ownership and housing stability

12 Georgia Heirs Property Law Center
QUESTIONS? Veronica McClendon Staff Attorney Georgia Heirs Property Law Center (706) @gaheirsproperty.org


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