Michigan Signs Law to Protect Heirs’ Property and Family Generational Wealth

In Michigan, a new law has been enacted to safeguard family properties passed down informally across generations. This legislative move aims to protect these “heirs’ properties” from being lost due to the absence of formal estate plans, a common issue threatening generational wealth.

Governor Gretchen Whitmer recently signed the “Uniform Partition of Heirs Property Act,” a law designed to help families retain ownership of their homes and land. The legislation was spearheaded by State Representative Emily Dievendorf from the 77th House district, covering parts of Clinton, Ingham, and Eaton Counties.

Understanding the Problem

Heirs’ properties often lack a legal transfer of ownership, leading to potential loss or forced sale. “Thousands of homes are at risk of going to fire sale because of this,” warned State Rep. Emily Dievendorf. This issue disproportionately affects middle to low-income households, particularly Black-owned family farms and low-income family farms.

Legislative Solutions

The new law aims to provide a legal framework that ensures all heirs have a say in the future of the property. Dievendorf explained, “This piece of legislation makes it so that… all of those heirs will have a say in whether they hold on to pieces of that property…” This reduces the risk of one heir forcing a sale, thereby preserving family wealth and stability.

Under the Act, if one heir wishes to sell their share, the remaining heirs have the right of first refusal, allowing them to retain the property within the family.

Urban and Rural Implications

The impact of this legislation is particularly significant in urban areas like Detroit, where over 5,000 homes are affected by inheritance issues. “In the middle of a housing crisis, another major concern of mine is that people can and do lose shelter because of this,” Dievendorf stated.

Future Considerations

While the Act addresses many issues, certain situations such as locating distant relatives remain challenging. Dievendorf acknowledged the need for further clarification but emphasized that any changes would not fundamentally alter the Act.

The law is expected to take effect later this year, providing time for legal professionals to adapt to the new regulations.

Editor’s note: Some quotes in this article have been edited for length and clarity. You can hear the full interview here.