8 AM - HEIRS RIGHTS - RURAL TRACK

National Heirs’ Property Training Program

Primary Authors

Andrea’ Barnes, Esquire

Mississippi Center for Justice

Gloria Bromell Tinubu, PhD

GBT Associates, LLC

Robert Zabawa, PhD

Tuskegee University

Kara Woods, PhD

PolicyAnalyst,ThePolicyResearchCenter,AlcornStateUniversity

Contributors and Reviewers

● ConnerBailey,PhD,ProfessorEmeritus,AuburnUniversity

● SamCook,ExecutiveDirectorofForestAssets,NorthCarolinaStateUniversity

● SaviHorne,Esquire,ExecutiveDirector,LandLossPreventionProject

● LorettePicciano,ExecutiveDirector,RuralCoalition

● SandraHarrisThompson,EdD,FormerFormerFloridaA&MUniversityand SouthCarolinaStateUniversity,StatewideProgramLeader,Community EconomicDevelopment

NationalTrainers

● SandraHarrisThompson,EdD,LadyHeirs’Property,LLC

● RobertZabawa,PhD,TuskegeeUniversity

● KaraWoods,PhD,AlcornStateUniversity

● FrancineMiller,Attorney,VermontLaw

● SamCook,NorthCarolinaStateUniversity

● EduardoMedina,PhD,NewMexicoStateUniversity

● BeckySmith,PhD,MississippiStateUniversity

● JacyFisher,Attorney,GregVarnerLaw

● PortiaJohnson,PhD,AuburnUniversity

Heirs’ Property Navigator Training Program

Authors and Trainers

● Sandra Harris Thompson, EdD, Lady Heirs’ Property, LLC

● Portia Johnson, PhD, Auburn University

Land Use Training Program

● Authors and Trainers

● Sam Cook, North Carolina State University

● Becky Smith, PhD, Mississippi State University

Agenda Topics

What is Heirs’Property?

Impacts of Heirs’Property

Legal and Cultural Considerations

OVERVIEW

Fractional Ownership

Locating Heirs’Property

Land Loss

Preventing Land Loss

Basics of estate and succession planning

PREVENTION

Steps to prevent heirs’property when establishing a will

RESOLUTION

Review some of the challenges of owning heirs’property

Importance of working with other family members

Steps to take to understand who legally owns the property

Legal structures that can hold land owned by heirs’property owners

Performance Objectives

Identifyheirs’propertyandexplainhowtheabsenceofformal willsordeedscancreatelegal,social,andeconomicchallenges forfamiliesandcommunities,inruralandurbansettings.

Describetheimpactsofunresolvedheirs’propertyoncommunity planning,developmentfeasibility,andlong‑termeconomicgrowth.

Recognizetherightsofheirsandsummarizekeylegaland practicaltoolsavailabletohelpfamiliesclarifyownership, resolvedisputes,andpreservegenerationalland.

Applytheplanner’sroleinsupportingfamiliesandcommunities byconnectingresidentstoappropriateresources,partners,and policyapproaches.

Integratesessioninsightsintoplanningpracticetoreduce conflict,protectgenerationalwealth,andsupportsustainable developmentoutcomesintheirowncommunities.

Heirs’ Property IS A Team Building Exercise For All Involved Team work makes the dream work!!!

Important notes before we begin:

These materials are intended to present general information as to preventing heirs’ property.

They primarily draw upon information in the southern United States.

The information may not be applicable to every state or territory.

These materials do not provide legal advice. Specific advice should be obtained from an attorney or another professional well versed in the facts and circumstances related to the individual seeking advice and the jurisdiction where the property is located.

Part I: What is Heirs’ Property?

What is Heirs’ Property?

● Refers to property passed down informally from generation to generation. Also known as “Fractured,” “Tangled,”“Clouded”

● The original landowner dies without a will, or the will was not probated or administered

● State laws determine who inherits your land.

● Can potentially include multiple generations and hundreds of relatives

● No single heir has clear title to the entire parcel. Eachownerhasaninterestintheentireassetratherthaneach heirhavingtheirownpieceoftheasset

Each Heir…

● Has equal rights to full use and possession

● Is legally responsible for taxes and other property-related expenses

● May transfer by gift or sale their interest to another heir or non-heir

● May seek physical division of the property

● Must agree to any major decisions about the property

Ifyoudonot decide howyouwant yourestate divided, thestatewhere yourestate (property)is locatedwill decideforyou.

Common Terms for Heirs’ Property Ownership: “Withouta cleartitle”

“Fractured” “Tangled” “Clouded” “FamilyLand” “Fragmented”

Important notes before we begin:

These materials are intended to present general information as to preventing heirs’ property.

They primarily draw upon information in the southern United States.

The information may not be applicable to every state or territory.

These materials do not provide legal advice. Specific advice should be obtained from an attorney or another professional well versed in the facts and circumstances related to the individual seeking advice and the jurisdiction where the property is located.

For example, if you die without a will in Florida…

If a person dies with: Here’s who inherits: If a person dies with: Here’s who inherits:

Children but not spouse: The children inherit everything

Aspouse but no descendants: The spouse inherits everything

Aspouse and children whose parents are the decedent and the spouse, and no other children: The spouse inherits everything

Aspouse and children that are children of the person who died but not the spouse: The spouse inherits half of the intestate property; children of the person who died inherit the other half equally

Parents but no spouse or descendants: The parents inherit everything equally

Siblings but no spouse, descendants, or parents: Siblings—or if they have already died, their children—inherit everything

Children born outside of marriage: If the person who died is the mother, children inherit as normal; if the person who died is the father, children inherit if: (1) the father participated in a marriage ceremony, even if it turned out to be void, (2) a court establishes the father’s paternity before or after his death, or (3) the father has acknowledged his paternity in writing

https://cafs.vermontlaw.edu/wp-content/uploads/heirs-property-florida-2024.pdf

Cheat Sheet Tips

1. It is important to file a deceased person’s will along with a petition to probate the will with the local court where the person resided and where the property is located as soon as possible after the person has died.

2. Estate planning and will making are critical to avoid the challenges for heirs’ property owners outlined above. For more information on the importance of wills and estate planning see the Farmland Access Legal Toolkit.

Heir’s Property, Cn tr. Ag ric . & Food Sy ss ., https://farmlandaccess.org/heirs-property/#challenges (last visited Oct. 25, 2022); Wills, Cn tr. Ag ric . & Food Sy ss ., https://farmlandaccess.org/wills/ (last visited Oct. 25, 2022)

Part II: Impacts of Heirs’ Property

03

01 02 Impacts On personal assets On family decision making On community development

Impact of Heirs’ Property: On the Landowner

Heirs’propertyrestrictshowlandcan bemanaged.

Examplesofmanagementdecisions:

• Timberharvestingand reforestation

• Farmplantingandharvesting

• Mineralrights

• Mortgagesandotherloans

• USDAprograms

• Conservationeasements

Impact on Personal and Family Assets:

●Promoting intergenerational poverty

■ Cannot open a line of credit or apply for a mortgage

■ Cannot sell the property

●Inhibiting full use of the land

■ Asset cannot be used as collateral for example, for a loan, to start a business

■ Cannot generate income by leasing the land or selling its natural resources

●Hindering insuring property

●Blocking access to some federal programs

■ Challenges in getting a farm number to be able to participate in USDA and state programs

Impact on Participation in Federal Programs:

• Historically lack of title has made it difficult to participate in federal agricultural programs offered by (USDA)

• Recent positive policy changes address some of those challenges (ex: heirs’ property owners can now get farmnumbers and participate in USDA programs under certain conditions).

Important notes before we begin:

These materials are intended to present general information as to preventing heirs’ property.

They primarily draw upon information in the southern United States.

The information may not be applicable to every state or territory.

These materials do not provide legal advice. Specific advice should be obtained from an attorney or another professional well versed in the facts and circumstances related to the individual seeking advice and the jurisdiction where the property is located.

Impact of Heirs’ Property:On the Community

Affects

how land is managed

Land cannot be developed to full potential Community loses taxes

Lost opportunities for improvements

01 02 SUMMARIZING

03

Up to this point we know that…

Heirs’propertylandisheldwithoutmarketabletitle

Heirs’propertyispassedfromonegenerationtothenextdueto lackofprobatedwillorjudicialproceeding

Heirs’propertyhaslimitedinvestmentpotentialandisatriskfor lossthroughlegalandothermeans

Part III: Mediation & Legal Remedies

Part IV: Legal and Cultural Considerations:

Both are Important

Question:

Topreventtheproblemsassociatedwithheirs’property, all you need is a Will?

YES and NO

Competing Strategies

YES:aproperlyexecutedwill,written accordingtostatelaw,thatdivideslandinto specificacreagesorparcels,cansecuretitleto landfromonegenerationtothenext.(No“all mychildren”withoutspecificacreage.)

NO:aproperlyexecutedwillisnottheonly waythatpropertycanbetransferredfromone generationtothenext.

Thefirstactionisalegalconsiderationand thesecondisaculturalconsideration.

Legal Considerations

Barrierstotransferringlandasalegal strategyinclude:

• Lackofknowledgeaboutwills

• Expenseofhiringanattorney

• Mistrustofalegalsystemthathasoftenhelpedtakeawayland

Cultural Considerations

Barrierstotransferringlandasacultural strategyinclude:

• Landisnotacommoditytobesold.

• TabooDeathTalk

• Landprovidesahomesteadwhereeveryonecancomeback

• Landgivesareligiousconnectionthatshouldberespected.The historyofthelandshouldberespected.

Consider this Quote: Valuing Land

in Common

“For [the family], the commitment to heir land remained in force, enforced not by law – where the practice and concept was vulnerable – but by shared understanding… The land should stay undivided, open to and for all the heirs.

Land is not a commodity that is sold, but a right that is transferred to kin as needed.

The land was for open access and undivided family use, and not to be restricted by deeds.”

AlsoaWestAfricanbeliefsystem

A

Consider this quote: Changing

Values

“Whenyoungpeoplegrowup…theydon’tseethenecessityofowning land….Myparents,mygrandparents,sufferedalltheirlivestobuyeleven hundredacresofland…[Land]hadasentimentalvaluetoit,‘causewehad togetalivelihood,wehadtogetourbreadfromtheland...Nowchildren thinkthatmilkcomesfromthestore.Theydon’tseetherelevanceofthe land...[They]havenoideawhatittook…toownland.”

How Property Law Is Used to Appropriate Black Land

Video

Debrief

What comes up for you?

01

Does it bring to the light the significance of the problem?

02

Do you see where you can act to avoid this situation?

03

Questions

Part V: Fractional Ownership: Challenges of Time, Distance, and Knowledge

Fractional Ownership

The SIZE

of each heirs’ fractional ownership interest depends on several factors such as:

• Howmanygenerationsremovedisanheirfromtheoriginaldeceasedlandowner?

• Howmanyheirscanrightfullytaketheirinheritanceataspecificpointintime?

Time: Across Generations, Things Get Complicated!

Parents

Children

Grandchildren

Great-grandchildren

Great-great-grandchildren

Distance Causes Challenges

Heirs may not all live on or near the land.

Distance can lead to disinterest.

(Stars are just an example showing how families can become geographically scattered.)

Management Challenges:

Overtime,heirsmaynot:

• Liveonorneartheland

• Liveneareachother

• Knowoneanother

• Knowhowtolocateoneanother

• Haveaconnectiontotheland

Part VI: Land Loss

Becauseheirs’property islandwithout securedtitle, itisoftenthetargetof predatorystrategies, manylegal.

Heirs’ Property and Land Loss

89% Decline in U.S. BlackAg Land

Waysheirs’propertycanbelost:

• TaxSales

• PartitionSales

Tax Deed Sale Process

https://www.leontaxcollector.net/Services/property-taxes/Delinquent-Taxes

1. Real estate taxes become delinquentApril 1st following the year in which they are assessed.

2. Beginning on or before June 1st, theTax Collector is required by law to hold a tax certificate sale. Florida Statutes require theTax Collector to advertise the delinquent parcels in a local newspaper once a week for three consecutive weeks prior to the tax certificate sale.

3. The certificates represent liens on all unpaid taxes on real estate properties.The sale allows any person to bid for a tax certificate by paying off the owed tax debt.The sale is conducted in reverse auction style with participants bidding downward on interest rates starting at 18 percent.The certificate is awarded to the person who will accept the lowest rate of interest.Atax certificate earns a minimum of 5 percent interest to the investor if the interest amount is less than 5 percent of the face amount of the certificate. NO interest is earned for those certificates awarded at a "zero interest bid".

4. Atax certificate, when purchased, becomes an enforceable first lien against the real estate.The certificate holder is actually paying the taxes for a property owner in exchange for a competitive bid rate of return on his/her investment. In order to remove the lien, the property owner must pay theTax Collector all delinquent taxes plus accrued interest, cost, and other charges. Once the certificate is redeemed, theTax Collector will issue a check to the certificate holder.

5. Atax certificate is valid for seven years from the date of issuance.The holder may file a tax deed application when two or more years have elapsed since the date of delinquency. If the property owner fails to pay the tax debt, the property will be sold at public auction at

Partition Sales

• One or more co-owners of the property sell their fractional interest to an entity; i.e. a developer

• The entity files a “partition action” asking a court to order the whole property be sold so that the developer can get the value of their interest

• The property gets sold.

• Proceedsfromthesalearedistributedamongco-tenantsbasedontheirfractionalinterest.

• Result: familylosestheland

Preventing Land LossUniform Partition of Heirs Property Act (UPHPA)

Property Act (UPHPA)

Where the Uniform Partition of Heirs PropertyAct has been adopted or introduced May 2024

UniformPartitionofHeirsPropertyAct (UPHPA) is a model law that state legislatures can adopt. It creates fair procedures for heirs’ property owners when a partitionaction is filed.

Under the UPHPA, heirs’ property owners have rights that protect them from losing their land and if the land is sold, it is sold for a fair value. We’ll talk more about this in a later section of this training.

Uniform Law Commission site at uniformlaws.org

How Does the UPHPA Help?

Applies only to heirs’property

May help heirs’ property landowners maintain ownership of their property

Restructures the way partition sales occur so if the land is sold, a fair value is obtained

Provides additional protections against the forced sale of heirs’ property

Preserves the right of a co-tenant to buy out the co-owner who wants to sell their interest

Critical Step to determine how the UPHPA can help you…

Speak with an attorney licensed to practice law in the state where your land (real property) is located about the UPHPA, its enactment in your state, and how it can help resolve your heirs’ property issue.

Quick Survey

Do you understand why heir property is an important issue?

02

What got you fired up?

What is something you wish you had more information on?

Part VII: Community Planners’ Role

● Identifywhereheirs’propertyConductongoing outreachactivities

1.https://www.dropbox.com/scl/fi/mjhud8krhso3be49029yy/family-meeting-poppas-lan d.mp4?rlkey=kyyy2xk155xw749si7frplmxl&st=fe9tpvoy&dl=0(familymeeting)

2.https://www.dropbox.com/scl/fi/gpovs9xa2ey8cpycga96z/Planning-My-Estate-short-fi lm.mov?rlkey=r62u140jqhefy99uyir7tchd7&st=pozfjolx&dl=0 (estateplanning)

● Conductongoingeducation&technicalassistance

● Buildingcriticalpartnerships(e.g.,legalaid,funders)

● Documentingfeedbackfromheirs’propertyownersto sharewithcommissionersandthegeneralpublic

● Balancinggrowthanddevelopmentwiththeneedsof heirs’propertyowners

● Advocateforaffordabletitleclearingfilingfees

Understandhowsomeconservationcosts(e.g.,holding pondandroaddevelopment)preventheirs’fromclearing title---(caughtbetweenarockandahardplace

Thank You!