Most people assume their heirs will automatically appreciate inheriting land. But in reality, land can become one of the most complicated—and emotionally charged—assets for families to divide after a loved one’s passing.In states all over the country, when estate planning is not put in place, land often becomes“heirs”property, meaning multiple family members inherit undivided fractional interests in the same parcel. This can lead to major conflict within a family, delays in fixing the title issues, and in many cases, the land becoming unsellable.Here are the biggest reasons many landowners choose to sell now rather than leave land to their heirs

1. LAND CANNOT ALWAYS BE DIVIDED FAIRLY

Every acre is NOT equal to another. Differences can and do occur on a tract of land in:

• Terrain and slope
• Floodplain
• Wetlands
• Road frontage and legal access
• Views
• Timber type, quality, size and health
• Soil quality
• Shape and length
• Water features like ponds, lakes or water frontage along a river

Such differences can make it nearly impossible to divide a parcel fairly among multiple heirs.
Attempting to divide the property can:- Reduce its value- Make some parts unusable (Example: a tract with limited road frontage that gets divided will usually create “landlocked” parcels for some heirs). Can also create odd-shaped, unmarketable lots (thin, narrow, unbuildable lots or odd shapes that will not accommodate local building ordinances.
Selling now avoids these problems and converts the land into cash that can be divided equally much more than a tract of land can.

2. PROBATE IS EXPENSIVE, SLOW, AND OFTEN REQUIRES MULTIPLE ATTORNEYS

f you own land in another state, your heirs may need:-One probate where you lived-Another probate where the land is located (ancillary probate

This means:-Two courts-Two sets of attorneys-Double the cost-Months or years of delaysSelling while alive avoids all probate burdens on your family

3. FAMILIES OFTEN BEGIN FIGHTING AFTER A DEATH

Even families who get along well can fracture quickly after a death. One heir may:

Refuse to sell

Demand a higher price

Refuse to communicate or cooperate

Become ill and unable to transact or handle their own affairs

Demand a valuable piece of a parcel to the detriment of other heirs- keeping the best piece for themselves.

Insist on using their own agent

Block needed repairs or land work

Delay paperwork for months, years or even decades

Move onto the property they only own a fractional share of

Altering a property such as removing timber, aggregate, topsoil or minerals without all heirs’ consent (and worse - without compensating the other heirs)

Sublease the property to third parties without complete consent of all heirs.

Just one difficult heir can “freeze” a property and prevent any progress made with it. At Land Pearl we’ve seen every one of the above scenarios play out (and more!) over the years on tracts we’ve encountered with fractional ownership issues.

4. UNDIVIDED INTEREST OWNERSHIP MAKES PROPERTY UNSUSTAINABLE

When heirs inherit land jointly, they all own the entire parcel together.This means:-Everyone must sign to sell-One holdout can block everything-No heir owns a specific portion-Title becomes clouded quicklyThe result: land becomes un sellable unless all are on the same page and cooperate fully. In many cases the property can eventually become tax-delinquent when the multiple owners give up trying to resolve the title issues, which can become complex.

5. OUT-OF-STATE HEIRS OFTEN CANNOT MANAGE RURAL PROPERTY

Many heirs live far away. After inheriting land, they are suddenly responsible for:

Hiring attorneys

Finding surveyors

Clearing land

Maintaining the property and/or handling repairs such as dams, interior roads, barns, storage buildings, fencing, gates or other related infrastructure or structures.

Handling utility issues

Hiring (and paying for) contractors

Paying property taxes

Managing listings and/or agents handling those listings (agents must be managed!)

Managing agricultural or related tenants

Collecting payments from other heirs for costs incurred to maintain or manage the property.

Most unexpectedly inheriting land do not want most if not all of these burdens.

6. LAND CREATES LONG-TERM FAMILY STRESS

Heirs can disagree on numerous issues, as there are often many decisions to made on a given property. Decisions usually must be made on:

Whether to sell

Price

Timing

Who manages the sale, who lists it, which real estate firm to hire, etc.

Paying taxes

Repairs or maintenance to various parts of the property (dams, culverts, timber, drainage, gates, fencing, natural disaster damage, etc. all must be maintained over time or repaired.)

Legal issues

Which heir gets which piece of the parcel

Even in the best of families, following a death, such disputes can occur within any family and last years, permanently damage family relationships, and cost thousands of dollars or more.

7. SELLING NOW LETS YOU AVOID FUTURE HEADACHES AND MAKE AN ILLIQUID ASSET, LIQUID AGAIN

Selling while you’re alive lets you:

Avoid future market downturns

Liquidate before legal issues arise

Distribute proceeds fairly and equally amongst heirs -cash is MUCH easier to divide than land.

Avoid the difficult task of fairly dividing a unique piece of land amongst multiple heirs - which usually means hiring surveyors and lawyers to draft the deed paperwork and new legal descriptions, etc.

Use the funds for your own needs

Use the funds to invest in a different asset, possibly income producing

If you’re considering selling rather than leaving land behind for your heirs to struggle with, Land Pearl Ventures offers a simple, straightforward process. We buy land directly, handle some types of title issues depending on the circumstnaces, and make the transaction easy for your family. Contact us today, and let’s go over how we can make the transition easier for you and your family.