Standing on a Lot of Love
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- Marsha Dennis
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1 HEIRS PROPERTY: Standing on a Lot of Love PRESENTATION BY MAVIS GRAGG THE GRAGG LAW FIRM, PLLC ABOUT MAVIS GRAGG Based in Durham, NC with a footprint across the state of NC Over 10 years experience as an attorney working with clients on real estate, estate planning, and estate administration matters Over 20 years experience as mediator empowering people to resolve conflict and problem solve for themselves Passionate about helping clients maintain and grow wealth through thoughtful, individualized planning mavis@gragglawfirm.com DEATH & DIRT 1
2 TOPICS FOR TODAY Quick, Not So Quick Study of Heirs Property Why Should Lawyers Care About Heirs Property What Lawyers Can Do to Relieve Challenges Related to Heirs Property HEIRS PROPERTY Land owned by multiple people, each of whom inherited their share. LAND TRANSFERS 2
3 THE BEGINNING HEIRS PROPERTY BEGINS WITH A SINGLE OWNER. The Heirs Michael 1/4 Sammy Aretha 1/4 1/4 Stevie 1/4 NEW OWNERS OVER THE GENERATIONS 3
4 BENEFITS OF HEIRS PROPERTY Legacy Economic stability Community resource FAMILY LAND AROUND THE WORLD USA Bougainville Ghana Tanzania CREATION OF MULTIPLE OWNERS OVER TIME 4
5 INTESTATE SUCCESSION IN NC If you die with: children but no spouse spouse but no descendants or parents spouse and one child or descendants of one child spouse and two+ children, or descendants of those children here s what happens: children inherit everything spouse inherits everything spouse inherits 1/2 of your intestate real estate child or descendants inherit 1/2 of your intestate real estate spouse inherits 1/3 of your intestate real estate children or descendants inherit 1/3 of your intestate real estate spouse and parents, no children or descendants spouse inherits 1/2 of your intestate real estate parents inherit 1/2 of your intestate real estate parents but no spouse or descendants parents inherit everything siblings but no spouse, descendants, siblings inherit everything or parents LEGAL STRUCTURE OF HEIRS PROPERTY Tenants in Common Ability to Transfer to 3rd Party Unanimous Decision Making CHALLENGES OF HEIRS PROPERTY Legal structure Social Financial 5
6 HOW TO MAKE FAMILY LAND OWNERSHIP WORK: Transfer ownership into a single entity owner All of the owners agree to the new ownership model Find out who the owners are Create the family tree! MAKING FAMILY LAND OWNERSHIP WORK 1. FAMILY TREE 2. IDENTIFY THE CURRENT OWNERS 3. OWNER DECISION MAKING 4. NEW OWNERSHIP STRUCTURE WHICH ENTITY IS THE BEST OPTION Trust or Limited Liability Company. It really depends. 6
7 ALTERNATIVES TO A SINGLE ENTITY Maintain the current situation Partition of the land Sale of the land in lieu of partition Why should lawyers care? RESILIENCY an ability to recover from or adjust easily to misfortune or change IT S MORE THAN LAND Water Air Species of other living things Things we literally need for our own survival!!! 7
8 WHAT CAN LAWYERS DO? Fellow Death & Dirt Lawyers- Collaborate! General Practice Lawyers- Don t be basic! Stay-In-My Lane Lawyers- Be a resource! PRACTICAL TIPS FOR ATTORNEYS Basic or Simple wills can cause complex, expensive problems. Counsel clients to understand that giving equally is not the same as loving equally Consider mediation first, before drawing out disputes or going to court Encourage landowners to discover the various economic opportunities with land as an incentive to resolve the legal issues. WHAT ALL OF US CAN YOU DO FOR FAMILY LAND? 1. Pay attention to folks with heirs property issues. 2. Be an advocate for planning. 3. Create Asset Maps. 8
9 ASSET MAPPING BUSINESSES/ ORGANIZATIONS LEGAL HEIRS PROPERTY RESOURCES IN DURHAM COUNTY GOVERNMENT INSTITUTIONS ASSET MAPPING ATTORNEYS (MAVIS) PRESENTERS ON TOPICS (MAVIS) APPRAISERS MEDIATORS REALTORS SURVEYORS GENEALOGIST LAND TRUSTS CONSERVATION GROUPS SKYPORT DRONES BUSINESSES/ ORGANIZATIONS HEIRS PROPERTY RESOURCES IN DURHAM COUNTY LEGAL CO-OP ETENSION FAITH BASED CIVIC GROUPS HALIFA COMM. COLLEGE UNIVERSITIES LOCAL STATE FEDERAL GOVERNMENT LAND SOIL SUN TREES VALUE INSTITUTIONS ASSET MAPPING BUSINESSES/ ORGANIZATIONS LEGAL RESOURCES FOR FAMILY PROPERTY GOVERNMENT LAND INSTITUTIONS 9
10 It feels good to hear someone say, take care. It feels so much better to hear someone say I will take care of you. -Unknown Thank you! MAVIS@GRAGGLAWFIRM.COM 10
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