[4] If the probate court enters an order of distribution, or if the estate administrator signs a deed, the ownership passes formally.
[8] This can pose difficulty for cotenants to access resources like loans, FEMA assistance in the event of a natural disaster, or other state and federal programs.
[10] Among other things, it requires improved procedures for serving notice on heirs and determining fair market value if the co-owners of the property are unable to agree.
[46] The process for participating in the program is as follows: In September 2021, FEMA developed guidelines for its agents to accept heirs' property documentation to qualify for disaster relief.
[48] Now, FEMA will also accept a Will or Affidavit or heirship along with the death certificate of the descendant, which names the person seeking assistance as the heir to the property.
[50] In Black-majority counties impacted by natural disasters, research has demonstrated more than a third of applicants have been denied due to having cloudy title issues on heirs property they have inherited.
[52] According to the United States Department of Agriculture, since 1910, the heir property system has been responsible for African American landowners losing 80% of the farming land owned by previous generations.
[13] However, the prevalence of heir property in some communities may also reflect a personal preference for informal, communal management of land.
[55] Within the Southern United States, about a third of the land owned by African Americans, amounting to about 3.5 million acres, is held in the heirs property system.
The negative impacts of heirs property affect families and every aspect of community including the functioning of local government, court systems, state departments, banks, businesses, and nonprofits.