Indiana Tackles Hidden Housing Crisis of Heirs' Property

INDIANAPOLIS, IN – December 29, 2025 – A new statewide effort is being launched to confront a widespread but often invisible threat to housing stability and generational wealth in Indiana: heirs’ property. The Federal Home Loan Bank of Indianapolis (FHLBank Indianapolis) today announced the Indiana Heirs’ Property Initiative, a new program backed by a $500,000 grant, designed to help families secure legal ownership of homes passed down without a formal will.

In a strategic partnership, the initiative will be administered by Indiana Legal Services and Prosperity Indiana, combining financial backing with on-the-ground legal aid and community outreach. The program aims to provide education, legal assistance, and long-term solutions for a problem that research shows affects thousands of Hoosier families, putting millions of dollars in property value and family legacy at risk.

The Pervasive Threat of Tangled Titles

Heirs’ property, also known as “tangled title,” occurs when a property owner dies without a will or a clear estate plan, leaving ownership legally clouded among multiple descendants. While the family may continue to live in the home, they lack the clear title necessary to sell, mortgage, or even qualify for loans to make essential repairs. This legal limbo leaves families vulnerable to significant risks.

A December 2024 report commissioned by FHLBank Indianapolis and conducted by Black Onyx Management, an applied research firm, illuminated the scale of the problem in two of Indiana's largest counties. The study, “Turning Legacy into Opportunity,” identified 1,410 existing heirs’ properties in Marion County and 484 in Allen County. More alarmingly, it flagged an additional 3,181 properties in Marion County and 1,525 in Allen County as ‘at risk’ of becoming heirs’ properties due to the death of an owner.

The combined value of these at-risk properties in just two counties totals more than $8.2 million, representing a substantial threat to community stability and the transfer of intergenerational wealth. Without clear title, families are often ineligible for homeowner’s insurance, property tax exemptions, or federal disaster relief. They are also prime targets for predatory developers who can exploit the complex ownership structure to force a partition sale, often acquiring the property for far below its market value.

“Research from Black Onyx Management revealed that heirs’ property is a widespread and growing risk to housing stability and generational wealth in Indiana,” said Roxann Lawrence, VP of Applied Research at Black Onyx Management. “This partnership ensures the data leads to action by connecting families to education, legal support, and trusted resources that help protect homes and strengthen communities for the long term.”

A Collaborative Blueprint for Action

The Indiana Heirs’ Property Initiative represents a multi-sector approach, leveraging the unique strengths of a financial institution, a legal aid provider, and a community development network. This collaborative model is central to the program's strategy to move from data to direct impact.

FHLBank Indianapolis, a regional cooperative bank owned by its member financial institutions in Indiana and Michigan, is providing the foundational $500,000 grant. The investment aligns with its core mission to promote affordable housing and community investment. This initiative is part of a broader, intensified commitment by the bank, which in recent years has voluntarily increased its contributions to community programs well beyond federally mandated levels.

“Our partnership with Indiana Legal Services and Prosperity Indiana will support educational efforts and evidence-backed strategies that help at-risk homeowners in our communities access the full benefits of homeownership and help maintain the generational wealth they’ve worked hard to build,” said FHLBank Indianapolis President and CEO Brendan McGrath. “As part of our core mission to promote affordable housing and community development, FHLBank Indianapolis is committed to providing solutions that promote housing stability in communities that might otherwise be at risk.”

Prosperity Indiana, a statewide association focused on community economic development, will spearhead outreach and educational programming. Their network of over 200 member organizations provides a crucial channel to reach affected communities and connect them with the initiative's resources.

“Helping families protect and preserve their homes is essential to creating and maintaining generational wealth as well as thriving communities,” said Aspen Clemons, Executive Director of Prosperity Indiana.

Providing a Legal Lifeline to Hoosier Families

The cornerstone of the initiative is the provision of free legal services by Indiana Legal Services (ILS), the state's largest provider of free civil legal assistance to low-income residents. With housing cases already representing its largest practice area, ILS is uniquely positioned to handle the complex legal work required to resolve tangled titles.

ILS attorneys will offer free legal assistance that includes two critical components: prevention and resolution. For prevention, they will help homeowners create simple wills and estate plans to ensure their property passes smoothly to the next generation. For resolution, they will guide families through the often-daunting legal process of probate and litigation required to clear an existing tangled title, consolidating ownership and providing the family with a marketable deed.

“Families shouldn’t risk losing a home simply because they’re unsure where to turn for help,” said Blair Hedges, Heirs Rights Attorney at Indiana Legal Services. “This initiative allows us to expand our services and offer free legal support to Hoosiers who need to make an estate plan, clear inherited title, or learn more about their rights. We’re committed to making sure every Hoosier knows that legal tools exist to help protect their homes and the communities they’ve built.”

This legal support is the key that unlocks the full potential of homeownership. With a clear title, families can access home equity loans for repairs or education, apply for property tax relief, and build a secure financial future on the foundation of an asset that may have been in their family for generations. Black Onyx Management will remain engaged to provide ongoing data reporting and measure the initiative's impact over time, ensuring the program remains effective and responsive to community needs.