H.R. 1640: Heirs Estate Inheritance Resolution and Succession Act of 2025

The Heirs Estate Inheritance Resolution and Succession Act of 2025, or HEIRS Act of 2025, aims to improve the management and resolution of heirs' property issues through the establishment of grant programs for states and local governments that adopt the Uniform Partition of Heirs Property Act or similar measures. Here’s a breakdown of what the bill entails:

Grant Program for Adoption of Heirs Property Laws

The bill requires the Secretary of Housing and Urban Development (HUD) to create a grant program within one year of enactment. This program will provide funding to:

• Entities (like states or local governments) that have already adopted the Uniform Partition of Heirs Property Act before the bill's enactment.
• Entities that adopt the Act after the bill's enactment.

The purpose is to incentivize states and local governments to adopt uniform laws that help resolve issues related to heirs' property, particularly to ensure fair management and ownership rights among co-owners of inherited property.

Use of Funds

Entities receiving these grants must use the funds to assist residents with expenses related to:

• Establishing and documenting property ownership rights.
• Settling a decedent's estate.
• Covering costs related to title reports, public records, land surveys, estate planning, notary services, and legal fees.

Moreover, grant recipients are allowed to use these funds in conjunction with assistance from other sources, such as federal or state programs.

Financial Appropriations

The bill authorizes appropriations of $30 million annually from fiscal years 2026 through 2036 for the grant program aimed at encouraging the adoption of heirs' property laws.

Grants for Housing Counseling and Legal Assistance

In addition to the above, the Secretary of HUD will implement another program to provide grants aimed specifically at assisting homeowners dealing with heirs' property. These grants will support:

• Housing counseling, legal assistance, and financial aid for title clearing and home retention efforts.

When awarding these grants, HUD will consider factors such as:

• The entity’s experience in assisting homeowners, particularly targeting services for minority and low- to moderate-income individuals.
• The ability to collaborate with other eligible entities.
• The presence of a significant population of heirs’ property owners in the area.

Additional Funding for Assistance Programs

For the grants relating to housing counseling and legal assistance, the bill authorizes $10 million each year from 2026 to 2030. These funds will help eligible entities provide the necessary help for owners facing issues related to heirs' property.

Housing Counseling Services Requirements

Under this bill, any non-profit organization receiving the funding must provide education on:

• What heirs' property is and the risks involved.
• Available options for estate planning and title clearing.

These organizations will also be responsible for referring consumers to appropriate resources, including legal service clinics that help with clearing titles and estate planning.

Definitions

The bill provides definitions for various terms, clarifying what constitutes:

• Heirs’ property: Residential property owned by two or more heirs as tenants in common, often resulting from intestate succession.
• Eligible entities: Include states, local governments, and approved housing counseling agencies or qualifying non-profits.
• Low- and moderate-income persons: Individuals or households whose income falls below a specified threshold relative to the median income for the area.

Relevant Companies

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