Forest Service Publishes Heirs’ Property and Land Fractionation Proceedings
September 26, 2019
Athens, GA — A recent publication by the U.S. Forest Service highlights heirs’ property ownership – which is real property, typically inherited without a will by two or more related people—across the southern U.S. This kind of ownership is especially prevalent among lower wealth, African Americans in the Black Belt South, central Appalachian whites, and Hispanic Americans in U.S. southwest colonia communities.
A similar type of property ownership appears as fractionated, allotments on tribal lands throughout the country. Heirs’ property is believed to be a significant factor explaining the wealth gap between African Americans and whites, and persistent Appalachian poverty.
The publication is a General Technical Report of the proceedings – a compilation of research findings and essays presented during a July 2017 meeting co-hosted by the Federal Reserve Bank of Atlanta (Atlanta Fed) and the U.S. Forest Service Southern Research Station (SRS).
U.S. Forest Service Social Scientist Cassandra Johnson Gaither; Federal Reserve Bank of Atlanta Director of Community and Economic Development Policy and Analytics, Ann Carpenter; Black Belt Justice Executive Director, Tracy Lloyd McCurty; and Center for Community Progress Senior Fellow, Sara Toering; co-edited the proceedings report.
"Finding solutions to the heirs’ property problem is critical, as it is preventing many families in the Southeast and elsewhere from building enduring wealth and seeking opportunities that can help them advance," said Raphael Bostic, Atlanta Fed president and chief executive officer.
For the first time, the meeting and now the proceedings, bring together organizations and researchers addressing heirs’ property across the South. Significantly, both the meeting and proceedings not only clarified the problem for these groups but also include lessons learned by grassroots, legal service organizations working directly with families to get clear title to their property.
"For generations, the lack of clear title has limited heirs’ property owners’ ability to participate in State and federally funded programs," explained Rob Doudrick, SRS station director. "Helping these landowners resolve their property issues will not only help them gain access to programs, but can encourage the adoption of sustainable forest management practices that will conserve their forest land and generate revenue."
The report highlights significant milestones made since the 2017 convening such as the adoption of the Uniform Partition of Heirs’ Property Act by additional states and stipulations in the 2018 Farm Bill intended to aid farm and ranch heirs’ property owners in accessing assistance from the federal government.
It is conservatively estimated that there are more than 1.6 million acres of heirs’ property in counties of the demographically defined Black Belt of the South, valued at more than $6.6 billion. For the larger Southern region -Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, and Virginia—estimates are 3.5 million acres with an assessed value of $28 billion.
"Fractionation interests prevents the property owners from reaping the full benefits of land ownership by limiting their ability to use the property as a productive resource, for collateral or as an investment," stated Carpenter. "It is a barrier that impedes efficient land use as well as opportunities to build wealth. This impacts a significant number of families and communities in the Atlanta Fed’s district."
The GTR contains chapters that focus on data sources, in-depth investigations of heirs’ property owners, research on cultural aspects of heirs’ property ownership, estimations of the extent of heirs’ property in the South, and both actual and proposed ideas for legal reform to make heirs’ property ownership more viable and valuable.
"It is overwhelmingly clear that heirs’ property erodes generational wealth and hinders community economic development," said Skipper StipeMaas, contributing author and Georgia Heirs Property Law Center executive director. "Fortunately, legal tools can help families, nonprofits, and municipalities unlock this frozen equity. Heirs’ property is everywhere; it probably affects your family even if you don’t know it; and, with legal resources, there is something you can do about it."