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FHLBank Atlanta Announces $5 Million Heirs’ Property Family Wealth Protection Fund

Staff Report From Georgia CEO

Tuesday, September 24th, 2024

Federal Home Loan Bank of Atlanta (FHLBank Atlanta) announced its 2024 Heirs’ Property Family Wealth Protection Fund (FWP), allocating $5 million to assist organizations with the prevention and resolution of heirs’ property issues.

 

A recent survey sponsored by FHLBank Atlanta and conducted by The Harris Poll found that most homeowners (90%) expect the equity in their home to benefit their heirs when they die, yet more than 4 in 10 (43%) do not have a will/trust or estate plan. The survey also showed that roughly 1 in 5 homeowners did not have, or were not sure whether they have, a clear title (22%) or recorded deed (20%).

“Without the proper legal process, there are often roadblocks preventing equity from being passed down as property owners intend,” said FHLBank Atlanta’s President and Chief Executive Officer Kirk Malmberg. “As part of our work to address housing and homeownership challenges, FHLBank Atlanta has focused on heirs’ property issues, which occur when a property owner passes away without a will designating a successor owner or the heirs fail to properly vest title to the property in their names.”

Through FHLBank Atlanta member institutions, starting October 1, 2024, community organizations, tribal entities, governments and municipalities may apply for up to $500,000 in grant funding to assist property owners located in low-to-moderate income areas within communities in the FHLBank Atlanta district: Alabama, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina and Virginia. The application deadline is October 31, 2024.

Heirs’ property issues may also arise when a property is left to multiple beneficiaries without a plan to manage the property, resulting in fractured or tangled title. The survey found that 38% of homeowners without a will/trust or estate plan intend to leave their home or property to more than one heir.

 

“Family homes and properties are key to generational wealth building, but all too often, this legacy is lost due to inadequate legal documentation,” said Georgia Congresswoman Nikema Williams, a member of the Financial Services Committee and the Subcommittee on Housing and Insurance. “Earlier this year, I led the introduction of the HEIRS Act, which shares the same goal as FHLBank Atlanta’s program: to increase access to essential legal services, bridge wealth disparities, and give families confidence that their properties are secure for future generations.”

Further, heirs’ property could be a more common challenge among lower income households. The survey indicated that 57% of homeowners with an annual household income under $50,000 do not have a will/trust or estate plan, and 42% in the same income range intend to leave their home to multiple heirs, exacerbating the potential risk.“When ownership of a property is unclear, it hinders the accumulation of generational wealth and makes it hard for the home to be maintained or sold, often leading to neighborhood blight,” said FHLBank Atlanta Senior Vice President and Director of Community Investment Services Tomeka Strickland. “The Family Wealth Protection Fund was created to help individuals protect their hard-earned assets for future generations while strengthening communities.”For additional information on FHLBank Atlanta’s Heirs’ Property Family Wealth Protection Fund or to identify a FHLBank Atlanta member financial institution for partnership opportunities, visit the Bank’s Find a Member page or contact Community Investment Services at 800.536.9650, option 3 or [email protected].