When multiple family members inherit a property, especially without a clear will or estate plan, disagreements can easily arise. One sibling might want to keep the home, another might want to sell it, and a third might be unreachable. These situations often lead to heated disputes and, eventually, forced sales that don’t feel fair to anyone involved.
- Why the Uniform Partition of Heirs Property Act (UPHPA) Changes Everything
- Step 1 – Court-Ordered Appraisal & Co-Tenant Buy-Out Window
- Step 2 – Partition in Kind (Physical Division) vs. Partition by Sale
- Strategic Considerations for Heirs & Personal Representatives
- Protect Your Interest With Bowen Hoogstra Law
In 2024, Michigan officially adopted the Uniform Partition of Heirs Property Act (UPHPA). The new law changes how courts resolve property disputes among heirs who co-own real estate property, with new protections and options that aim to keep families from losing valuable property while respecting individual ownership rights.
Let’s explore how Michigan UPHPA works, what problems it solves, and how you can protect your interests if you’re facing a partition action.
Why the Uniform Partition of Heirs Property Act (UPHPA) Changes Everything
Before, if you co-owned property with relatives and one of you wanted to sell, Muskegon probate courts typically ordered a partition by sale, even if the rest of the family wanted to keep it. That sale often happened at auction, and properties were frequently sold below market value, leaving families with minimal proceeds for a home or land that had been in the family for generations.
The Michigan Uniform Partition of Heirs Property Act (UPHPA), effective as of April 2, 2025, aims to address that, offering fairness, transparency, and options to co-owners of inherited property. Here’s what it does:
- Fair-Market Appraisal First
Instead of rushing into a sale, the court must first order an independent appraisal of the property’s fair market value to ensure that no one is shortchanged if the property does end up being sold.
- Buy-Out Option for Co-Tenants
If one or more heirs want to sell their share, the law gives the other heirs a chance to buy them out first before the property is listed or divided. The buy-out option can help preserve family property and reduce conflict.
- Preference for Partition in Kind
If a buy-out doesn’t happen, the court must consider whether the property can be fairly divided among the heirs instead of being sold. Only when a physical division isn’t feasible does the court move toward a partition by sale.
The UPHPA gives families more control over inherited property and protects generational wealth from being lost due to forced sales. So, if you’re one of several co-owners facing a tough decision about shared property, the law can be your legal safety net. Unsure where to start? Let your local probate lawyer in Muskegon, MI, walk you through your rights.
Step 1 – Court-Ordered Appraisal & Co-Tenant Buy-Out Window
When a co-owner files a partition action, the first thing the court must do under the UPHPA is to order an independent, qualified appraisal. The appraisal sets the fair market value of the entire property, giving everyone a clear picture of what the estate is worth. Let’s say you inherited a 40-acre property with three cousins. One cousin files a partition action because that person wants to cash out. Before anything else can happen, the court brings in a certified appraiser to determine the fair market value of the whole property.
Once the appraisal is complete, the court gives you and the other heirs 45 days to decide if you want to buy out the share of the cousin who wants to sell. If the property is valued at $300,000 and each of you owns one-third, the share of that cousin is worth $100,000. If you and the remaining heir can come up with that amount, you can preserve the property without going through a public sale. In the past, you might have had no chance to keep the property, even if you were willing to pay a fair price. Now, the law gives you that opportunity.
Keep in mind, however, that the buy-out must happen within the court-mandated timeline, and the payment is made under court supervision. That’s why it’s important to have legal help from a qualified probate lawyer in Muskegon, MI, especially if you need to respond quickly or make a strategic decision. If no one chooses to buy out the share of the co-owner, then the court moves on to the next phase, deciding whether the property can be divided or must be sold. That’s where things can get even more complicated.
Step 2 – Partition in Kind (Physical Division) vs. Partition by Sale
Under the UPHPA, Muskegon courts start with a preference for partition in kind over a forced sale unless doing so would be economically impractical or substantially diminish the value of the entire property. For instance, if the property is a small, single-family home or a building in downtown Muskegon, dividing it physically isn’t realistic. Selling the property and splitting the proceeds becomes the only viable option, but not through a cheap auction. The sale must be conducted through a commercially reasonable method, such as listing it on the open market with a licensed real estate agent.
Strategic Considerations for Heirs & Personal Representatives
So, if your goal is to preserve family wealth and sentimental value, you and the other heirs might prioritize the buy-out option or work to support a partition in kind. That way, you get to keep the property in the family and avoid losing a meaningful asset.
On the other hand, if maximizing cash proceeds is your priority, a partition by sale might be the better path. Selling on the open market can bring in a fair price, and each heir receives their share of the proceeds without the complications of shared ownership.
An experienced probate lawyer in Muskegon, MI, can guide through these options and help you decide on the best strategy for your situation. With the UPHPA in place, you have more tools than ever to reach a resolution that balances fairness, value, and family interests.
Protect Your Interest With Bowen Hoogstra Law
The Michigan Uniform Partition of Heirs Property Act (UPHPA), while designed to protect families, introduces new procedures and considerations that require a deep understanding of the law. Bowen Hoogstra Law is here to protect your rights every step of the way. Our seasoned probate lawyer in Muskegon, MI, understands how the UPHPA works and how to use it to your advantage. We can help you make smart, informed decisions that align with your goals and protect your legacy. Contact us today at (231) 726-4484 or here for a consultation.