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Heirs’ Property: Investing to Preserve Wealth - Asset Funders Network

HEIRS’ PROPERTY:

Investing to Preserve Wealth

Prospective economic benefits to families and community

HEIRS’ PROPERTY is land, and any homes and buildings attached to the land, inherited through multiple generations without a clear or formalized transfer of title. This often happens when a property owner dies without a will or a formal estate plan.

Heirs’ property is property (land as well as houses and other buildings that are permanently attached to the land) that has passed down to multiple family members via inheritance, often across multiple generations. Heirs’ property impacts all racial and ethnic groups across the United States in urban, rural, and suburban areas, disproportionately occurring in low-wealth families and communities.

The fractionated and clouded nature of heirs’ property ownership makes heirs’ properties highly vulnerable to forced sales, predatory investors, and other losses. Philanthropic investments in heirs’ property interventions can help address these issues and, ultimately, help families realize the full value of their asset and preserve and build wealth from their property.

This report highlights the potential economic benefits of resolving title for residential heirs’ properties in urban areas. It presents a prospective Social Return on Investment (SROI) analysis that predicts the value yielded by investments in interventions by community-based nonprofit practitioners whose people and programs specialize in heirs’ property resolution. The research finds that heirs are the main repository of benefits in the SROI with public agencies or federal, state, and local government administrations also receiving some benefit.

For every dollar invested in heirs’ property resolutions, the SROI* shows a potential return of up to $36 in preserved wealth, reduced legal costs, increased property values, and strengthened community stability—depending on the case outcome.

*SOCIAL RETURN ON INVESTMENT (SROI) analyses measure and evaluate the broad value generated by an programmatic investment. The research expands upon traditional cost-benefit analysis by including social and environmental benefits in addition to financial ones, often expressing them as a monetary ratio illustrating the social value generated per dollar invested.

ADDITIONAL RESOURCES

AFN State-Focused Briefs

TEXAS: Checklist of State and Local Legal Heirs’ Property Protections. This checklist is based on the full brief, Heirs’ Property: Policies to Preserve Wealth.

Texas: The Impacts of Heirs’ Property on Homeowners in North Texas

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