The goal of this document is to review the state laws and policies of New Jersey that impact heirs’ property—its creation, resolution, and risk of loss. Heirs’ property is real property that has passed down through inheritance, often across multiple generations, without going through a probate court process to document the transfer.
Without a registered deed or legal proof of ownership, heirs’ property owners are blocked from access to many forms of relief and are at heightened risk of losing housing or home equity value to speculators. With ownership fractured among many heirs, it may be impossible for any individual heir to benefit from the value of the property by selling, mortgaging, or otherwise using the property. Heirs living in the home face an increased risk of displacement in foreclosure or other situations where ability to prove valid ownership is critical.
Funders have a unique opportunity to protect and build generational wealth by investing in strategically designed initiatives focused on addressing fractured ownership. Philanthropic actors, in collaboration with nonprofit advocates, can make a significant, coordinated impact if awareness regarding potential heirs’ property asset losses and associated housing risks is broadened among funders. Grantmaking to protect heirs’ properties produces a significant return on
investment, ranging from 2 to 32 times the amount invested. Grantmakers aiming to mobilize the wealth-building and wealth-preservation potential of heirs’ property must consider the importance of targeted policy reforms in tandem with effective delivery of direct services.
The following checklist provides a list of state and local interventions which, taken together, have the power to enable owners to make full use of their heirs’ property and protect their legacies. Yet few if any states have provided the full slate of these possible protections.
