Advancing Minority Homeownership: Heirs' Property

Our clients’ issues are far more complex than one would expect—numerous heirs, minor heirs, unsubstantiated creditors, house rich and so cash poor as to be at the brink of losing a home for less than a $4,000 bill. 

WHY?  Low-wealth communities without access to estate law services get tangled in title issues that deprive them of the full benefit of owning a home--unable to tap into the home’s value, unable to sell or take out equity loans, or get homeowner’s insurance or qualify for programs aimed at helping them.    

WHAT IS HEIRS' PROPERTY? Property transferred from one generation to the next without estate planning or a clear will.  In other words, no way to document legal ownership.  Clear ownership is generally required to secure a loan for property improvements or qualify for a government grant after a disaster. Property ownership has also been a way to build wealth both within and across generations. 

ACCESS TO JUSTICE --a crisis of exclusion and inequality—is restricted: only some people, and only some kinds of justice problems, receive lawful resolution.  DCRAC Law launched to address a need that continues to worsen access to legal representation for those who do not qualify for free legal service AND cannot afford them in the free market.  

WHAT CAUSES SUCH TITLING ISSUES?  The reasons are broad: some are in a foreclosure crisis; some live on large parcels of land, sometimes from different generations and varying degrees of ownership; some seek to quiet title with added obstacles of liens and unproven and predatory debt; others have such unique issues that require an experienced, hard-working, and caring law firm. 

WHAT DO WE DO? We represent clients through the probate process after the passing of a loved one. It is not uncommon for one parcel of land to have more than one open probate matter. We fend off motions and tax sales to give our clients a chance to keep their homes. We work with the local taxing authority to ensure all loose ends are addressed and resolved. Cases can often take months or years, with costs that are sometimes too much for a homeowner to pay. Legal owners of property deserve our level of representation to ensure they can pass their property to their loved ones with ease.

We have worked with families where several heirs inherited property, in some cases more than 20 people, spanning generations. These cases are especially difficult because of the layers of probate and locating all the heirs. Then, to work with everyone to resolve the matter is challenging. Some of our clients inherited property where an outstanding mortgage needs to be paid off or refinanced, and sometimes there is the added pressure of an impending foreclosure. 

We have also taken cases when property passed to minors, and we file for Guardianship before transferring property. Most recently we took on Quiet Title Actions. Guardianship and Quiet Title cases are heard in Chancery Court. 

WHEN THE INEVITABLE HAPPENS our work provides legal protections to families. We help our clients plan and walk them through the process. For those who find us too late, we are their only chance to keep the family home.  We work with involved family members through the open legal matters to ensure a resolution.

Without the legal services we provide, families could lose their wealth, and, in some cases, it could effectively land them in deeper poverty--- some without a home to live in. 

DCRAC IN THIS SPACE: In 2014, a community in Sussex County was unable to take advantage of the resources it needed to stay safe.  As DCRAC worked with these families, we learned about Tangled Titles/Heirs’ Property.   The matriarch had passed away decades ago and her descendants had no ownership documents.  In August 2021, Pew Charitable Trust published the extent of the problem in Philadelphia.  Delaware would do well to draw from its analysis.  

• Home equity accounts for about 25% of wealth.  For Black homeowners it is 54%.
• Those who do not have a will: 60% adults, 70% low-income, and 72% nonwhites.
• Homeowners own 10 times the wealth owned by renters.   

About DCRAC Our mission is to ensure every Delawarean has equal access to the equitable resources and high-quality services they need to build financial stability, accrue generational wealth, and participate in mainstream banking and legal systems.