Owning a home remains one of the most powerful ways to build and transfer wealth across generations. However, over $32 billion in U.S. property across 44 states and Washington, D.C., is currently at risk due to legal complications that can disrupt this transfer, according to recent estimates.
A significant issue affecting this wealth transfer is heirs’ property, which arises when homeowners die without a will, leaving property informally to multiple descendants. This non-formal ownership structure can complicate the ability to pass on property, access government disaster assistance, or qualify for property tax relief, as outlined in a JPMorgan Chase study.
Homeowners in these situations are particularly vulnerable to foreclosures, tax sales, and predatory investors who seek to acquire homes at below-market prices.
In response to these challenges, JPMorgan Chase has committed over $9.6 million in philanthropic support to organizations dedicated to preserving homeownership by addressing issues related to heirs’ property, appraisal bias, and home undervaluation.
"As interest rates and mortgage costs rise, the journey to sustainable homeownership is becoming increasingly arduous," remarked Heather Higginbottom, head of research policy and insights for corporate responsibility at JPMorgan Chase, during an event hosted by the firm in Atlanta. "For many homeowners, particularly in Atlanta, high rates of heirs’ property and appraisal bias create significant barriers to maintaining homeownership and benefiting from their property’s equity."
Both heirs’ property and appraisal bias disproportionately impact communities of color. According to the National Consumer Law Center, it is estimated that up to half of all Black-owned property is categorized as heirs’ property.
"This is predominantly a Black and Brown issue," noted Thomas Mitchell, a professor at Boston College and director of the Initiative on Land, Housing & Property Rights. "However, it is by no means limited to these communities."
The ongoing undervaluation of homes in minority neighborhoods further exacerbates the racial wealth gap. Research from the Brookings Institution indicates that homes in Black neighborhoods are valued approximately 21% to 23% less than similar homes in predominantly white neighborhoods.
JPMorgan’s philanthropic efforts will target preserving homeownership in specific regions, including Georgia, New York, Jacksonville, Pittsburgh, and Washington, D.C. The funds will support organizations addressing heirs’ property and appraisal bias through estate planning clinics, legal services, research, and market innovation.
These efforts include:
$3 million to Catapult Greater Pittsburgh, a nonprofit providing legal clinics for individuals without legal titles to their homes.
$2.3 million to the Brookings Institution and Economic Architecture, which are collaborating to address the devaluation of homes in Black neighborhoods.
$2 million to the Initiative on Land, Housing & Property Rights at Boston College for research and policy development to improve property rights in underserved communities.
$889,000 for the Center for NYC Neighborhoods, which raises awareness among Black homeowners and offers free estate planning services.
$500,000 to LISC Jacksonville for expanding heirs’ property and family wealth creation programs.
$500,000 to Howard University’s legal clinic for estate planning and heirs’ property legal services.
$300,000 to the Alcorn State University Foundation for research and ethical recommendations on the use of public heirs’ property data.
$150,000 to the Federation of Southern Cooperatives/Land Assistance Fund to extend legal support to rural homeowners in the Southeast U.S.
These initiatives aim to secure the future of homeownership for vulnerable communities, ensuring that wealth building through property remains accessible across generations.
