WASHINGTON — According to the National Consumer Law Center, a “pay-to-stay” fee is potentially authorized in more than half of U.S. states, “seizing the inheritances of incarcerated or formerly incarcerated people to pay for costs of their own incarceration.” It is common for nearly every state to charge these incarcerated people these fees, “which may include charges for room and board, medical expenses, and other necessities.”
An inheritance can create a safety net for future generations. The transfer of a family home or other inheritance types allows for economic security for working families facing rising living costs.
Cerulli Associates anticipates that the “wealth transfer from the Baby Boomer generation to their heirs” may be over $50 trillion, an estimate that “has the potential to provide millions of families with improved financial stability.”
However, this financial lifeline is under threat for many working-class families. While affluent households often shield their wealth through trusts and legal entities, lower-income families whose wealth is largely tied to home equity face the risk of losing their inheritances to pay off debts, including incarceration fees.
A recent study by Professor Brittany Deitch found that three states explicitly allow the seizure of inheritances for pay-to-stay fees, while 25 others may permit it under certain conditions.
The consequences are stark.
Take Teresa Beatty, a Connecticut resident and certified nursing assistant, who inherited a 40% stake in her family home after her mother’s death in 2020. The state demanded over $83,000 from her to cover fees from a two-year prison stay nearly two decades prior.
Connecticut’s pay-to-stay law charges incarcerated individuals $249 per day, amounting to $90,885 annually, a sum the ACLU of Connecticut notes exceeds the cost of 2.5 years at the University of Connecticut, including housing and meals.
The NCLC report highlights how pay-to-stay laws function as a “regressive tax on low- and moderate-income families.” While the top 1% of Americans inherit over $700,000 on average, the bottom half of U.S. households receive a mere $9,700, with three in four getting nothing at all.
For working-class families, inheritances often come in the form of a home, not liquid assets like stocks or bonds. “The ‘wealth’ of working-class families in the form of a home… can seldom be applied to cover the soaring costs of living in other facets of life, from education to health care,” the report states.
This disparity is exacerbated by the criminal justice system’s targeting of low-income communities. Laws criminalizing poverty, such as anti-homelessness ordinances and debt-based license suspensions, disproportionately entangle poorer individuals in the legal system.
“Working-class Black families particularly feel these disparities,” the NCLC notes, pointing to systemic biases that lead to longer jail times and higher fees.
The racial inequities are impossible to ignore, and white families inherit over five times more than Black families, while Black households are nearly four times less likely to receive any inheritance at all.
“Forty-five percent of Black household wealth is tied to home equity, compared to only 19% of white household wealth,” the NCLC report reveals. Yet, Black Americans make up nearly half of the state prison population, despite representing just 13% of the U.S. population.
“Black individuals spent about two weeks more in jail [annually] than white people on average,” according to recent data cited in the report. This disparity translates into higher pay-to-stay fees, further eroding the limited wealth Black families can pass down.
The NCLC warns that these policies “hamper the preservation and transfer of wealth across generations for marginalized communities.”
The harm extends beyond individuals to entire families and communities. Over half of incarcerated people are the parents of minor children, and nearly two-thirds of their families struggle to afford basic necessities.
“Seizing inheritances can destabilize financially vulnerable families and undermine children’s likelihood of success,” the report states.
The devastating impact of inheritance seizures extends far beyond financial losses. For formerly incarcerated individuals already facing steep barriers to housing, employment and public benefits, losing a family inheritance can destroy any chance of rebuilding their lives.
Research from the Prison Policy Initiative shows people released from prison earn 52% less annually. The tragic case of Johnny Melton, who died “penniless” after Illinois seized his assets to cover pay-to-stay fees, illustrates how these policies perpetuate cycles of poverty.
As the NCLC warns, such seizures “make successful reintegration… more difficult” while providing minimal benefit to states.
Ironically, these predatory fee systems often cost governments more than they recover. An ACLU of Ohio study found they create “larger, outstanding bills” without improving collection rates, while an Illinois official admitted the policy required “a significant use of resources… for very little return.”
This flawed approach creates perverse incentives, allowing states to “ignore the rising… costs of incarceration” while devastating vulnerable families.
The NCLC calls for urgent reforms including complete repeal of pay-to-stay laws or, at minimum, protecting family homes and smaller inheritances below $100,000. Additional recommendations include implementing time limits on collections and requiring transparency about who these policies impact most.
At their core, these regressive policies don’t just drain family wealth — they actively widen America’s racial and economic divides, with working-class families like Teresa Beatty’s bearing the heaviest costs.
As the NCLC report makes clear, what’s framed as fiscal responsibility is actually a counterproductive attack on the most vulnerable.
