MVLS was following several legislative updates regarding estate planning, estate administration, and property law. We especially were looking at issues that might affect our Tangled Title program. But this was a tough session as the budget deficit took most of the General Assembly’s attention. As such, there were not many big changes.  

Some Tax Sale Protections for Heirs’ Property Owners 

There was a bill that passed that offers some new protections to “heirs’ property” owners.  “Heirs’ Property” or “Tangled title” is where the owner on the deed has died and the property has not been legally passed on to the heirs. This is a very unstable way to own property which is why our program is focused on resolving this legal issue. Tangled titles present a barrier to accessing essential home preservation services, such as a tax credit or home repair grant, due to the owner’s name not being on the deed. We have consistently seen tangled titles negatively overlap with mortgage and tax sale foreclosures to destabilize vulnerable homeowners. Our research has shown that this amplifies a wealth gap of nearly ten times between white and Black families. Our Tangled Title Program works to help people keep their homes and preserve intergenerational wealth by using estate planning, estate administration, and deed services. 

Before this new law, if a property was owner-occupied, then there were several additional protections that non-owner-occupied properties did not have. The new law attempts to extend some of these protections to heirs’ property owners. Heirs’ property owners statewide now need to owe at least $1,000 to the municipality before being put into tax sale.  

While we are encouraged by the legislature’s interest in helping heirs’ property owners, there are serious limitations to this approach. Heirs’ property is inherently a problem of non-documentation. So, there is no way to identify heirs’ property at scale. This unfortunately means that the only people that will benefit will be people that are disadvantaged enough to have heirs’ property and simultaneously advantaged enough to have a lawyer to assert their rights.  

The law also allows heirs’ property owners to qualify for the “Homeowner Protection Program.” This program allows the participant to get on a payment plan to avoid tax sale. This is also positive, but the program is set up to serve less than 20 families statewide. 

See the law– HB59