As wealth inequality remains stark, fueled in part by racial differences in homeownership rates, attention is increasingly turning to a lesser-known area of property ownership – heirs’ property.
Heirs’ property refers to land that’s been passed down by inheritance, with no formal will or other legal documentation proving ownership.
Without any clear way to prove ownership, those who inherit heirs’ property may lose it to predatory investors or the government. Or it may become divided into such small parcels as it passes through the generations that it becomes essentially worthless.
Heirs’ property is an issue that disproportionately afflicts Black households, particularly in southern states. Because of the lack of documentation, it’s impossible to quantify how much land is considered heirs’ properties, but a 2023 analysis from Fannie Mae suggests at least $32 billion.
Recent efforts, including Congressional legislation, are attempting to make right some of the past property losses that families have suffered, and to make sure more families are protected against such situations in the future.
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In counties that have a “very high prevalence of identified heirs’ property,” 75% of residents are Black, the Fannie Mae analysis shows. According to earlier research, in the 45 years after the abolition of slavery, Black Americans acquired 15 million acres of land. By 2001, an estimated 80% of that land had been lost.
