Heirs, “heirship” or undivided interest property is one of the most common—and devastating—forms of land loss in vacant land ownership. It happens when a landowner dies without a will, causing property to transfer to multiple heirs as undivided fractional owners.

WHAT IS HEIRS PROPERTY?

When someone dies intestate (without a will), land is divided by state law. Heirs become fractional owners of the same parcel—no one owns a specific piece. If this issue remains unaddressed as the decades pass, ownership becomes more fragmented as heirs who pass way pass on their shares to more heirs.

As a brief hypothetical example - Bob Smith, an imaginary owner we just made up who is single at the time of his death, dies without a will. Before died, Bob had bought a 5-acre parcel of rural land in Texas to build on but got sick and never got around to it. Bob had five children. Each child gets a 20% undivided share of the 5-acre parcel as the natural heirs to Bob's estate.

Let's say one of Bob's five children later soon after dies before the title issue is resolved, and that deceased heir/child of Bob's has three children of his or her own. That heir's 20% share is then divided up amongst those three children. Now the other original four heirs of Bob and the additional three children of the deceased heir (seven heirs in all, who are scattered all over the country) must be on the same page and agree before the land can be sold, split up or used. However, the Smith family can never agree with what to do with the land. As time marches on, nothing is resolved, the remaining four heirs become older and pass way, and the problem becomes worse and worse.

Eventually the title ownership becomea so complicated with so many family members owning small shares all over the country, the Smith family finally abandons hope of ever fixing the title on the property. Since no one lives near by, the property is neglected and becomes overgrown. The Smith family were unable to agree with what to do with the property, so the property taxes also go unpaid.  Years later, the county the property is located in files legal proceedings to legally take the property from the Smith family due to the unpaid county property taxes that have accumulated over the years, with interest.

WHY HEIRS/HEIRSHIP TYPE PROPERTIES ARE A PROBLEM

- Everyone must agree to sell on the same terms and conditions.

- One person in disagreement to other heirs can block everything.

- Heirs can insist on dividing the property in unfavorable ways affecting the property’s value, legal access, or usability.

- Some heirs may be estranged from the family, out of touch or can’t be found.

- Taxes can go unpaid.

- Title becomes unmarketable, preventing the property from being sold.

WAYS FAMILIES LOSE THE LAND

1. Tax delinquency

2. Partition lawsuits

3. Family disputes

4. Inability to sell

5. Out-of-state heirs overwhelmed

HOW TO PREVENT HEIRS PROPERTY(PRE-PLANNNG REQUIRED)

- Create a will and address the gift or disposition of the property in the will.

- BEFORE the death of the owner, using legal and surveying professionals, legally split the property up into equal pieces and gift to each heir (NOTE: depending on the number of heirs, this is many times impractical or impossible to do fairly due to the unique nature of land.)

- Use Transfer-on-Death deeds

- Use Lady Bird deeds (available in states like TX, FL, MI, WV, VT)

-Use a trust

-Or sell before issues arise

If you’re concerned about future heirship issues—or if you already have heirs property—Land Pearl Ventures can many times intervene and help resolve title or purchase the property quickly. Our company has navigated a number of curative title situations over the years.