Heirs’ property—created when a home is passed down without a clear and legal transfer of the title—poses a threat to wealth preservation. Without a will or estate plan, ownership can become unclear and heighten the risk of “tangled titles.” This form of unclear ownership can lock families and individuals out of financial opportunities, limit access to mortgage lending, and even result in the loss of the home. Estate planning can reduce risks of heirs’ property, but many homeowners face barriers accessing these services.
Why This Matters
Creating a will or estate plan is one of the most effective ways to protect against heirs’ property risks. Evidence suggests that many senior homeowners at risk of tangled title lack the financial resources to access services to create a will or estate plan. Activities like wills clinics can help and should not be abandoned. Similarly, technology can provide a scalable solution to estate planning and at a lower cost. But the “digital divide,” which characterizes those with access to digital services and those who do not, means that the promise of technological innovation can bypass the groups who could benefit most from technological adoption.
What We Found
The legal services industry has been more likely to test and adopt innovative technology—artificial intelligence, cloud-based technology, and specialized software—than the rest of the private sector, mainly to improve processes and service delivery. This has the potential to rapidly shift how estate planners deliver their services to homeowners. But many of the homeowners most at risk—particularly older adults, low-income households, and communities of color—lack reliable internet access, digital skills, or comfort with online services responsible for estate planning. We recommend policies that expand access to digital services and improve outreach to vulnerable communities as broad steps to overcome the digital divide, expand wills and estate plans, and reduce the risk of tangled title.
How We Did It
First, we summarize existing research on heirs’ property, estate planning, and the digital divide. Second, we use the 2023 Annual Business Survey to study how the legal services industry has adopted technology relative to other industries. Third, we use the 2019 through 2023 American Community Surveys to compare telephone and internet access across generations. Fourth, we use the Health and Retirement Study to study internet usage among homeowners with heirs’ property risks.
