by Attorney Raven Beach
Your great-grandparents purchased 50 acres of land in the hope of providing for their family. Unfortunately, they died without a will. What happens to all that land? Who owns it now?
If you don’t decide what should happen to your property upon death, the state will decide for you. In this scenario, all of their heirs have an ownership interest in the property, making it “heirs’ property”. Heirs’ property is land that is passed down from generation to generation and can include multiple generations and literally hundreds of relatives who hold a clouded title. A clouded title is a defect in the owner’s title to land.
The creation of heirs’ property restricts the ability to manage the property and to accumulate wealth as initially intended. It can also lead to a loss of control. No matter what the interest size, each heir is a co-owner, and all co-owners have equal rights to do or not do what they wish with the land. This means that every owner has the right to occupy the land, to harvest the land, and each has a respective obligation to pay taxes on the land. Not having a clear title also means that the property can be subject to a partition action. A partition is a court-ordered process by which any heir, regardless of how small their interest is, can force the property to be sold or divided. When a particular property cannot be divided, the partition forces all owners to sell, often to developers.
Some states, including Alabama, have adopted the Uniform Partition of Heirs’ Property Act (UPHPA). The UPHPA is a model state law designed to prevent the forced and often predatory sale of inherited property. Under the UPHPA, certain due process rights are afforded, including the right for heirs to receive notice, the right to obtain independent appraisals, and the right of first refusal. The Act has had a significant impact on minority landowners.
The moral of this story: be proactive and intentional in the distribution of your property after death. Create a will or establish a trust to protect your property.
Raven Perry-Beach, Esq.
107 Jefferson St.
Suite 14
Huntsville, AL 35801
(256) 799-0292
* Licensed in Alabama, Tennessee, Massachusetts, and DC
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