481 U.S. 704 (U.S. Supreme Court 1987)
Hodel v. Irving is a cornerstone takings case at the intersection of property law, constitutional law, and federal Indian law.
Does a federal statute that abrogates both descent and devise of certain fractional interests in Indian trust lands and directs their uncompensated escheat to the tribe upon the owner's death effect a taking in violation of the Fifth Amendment?
While the government has broad authority to regulate the descent and devise of property, including escheat, a regulation that goes too far constitutes a taking requiring just compensation. The right to pass on property at death—through descent or devise—is a significant stick in the bundle of property rights protected by the Takings Clause. The complete abolition of both descent and devise of a class of property, coupled with uncompensated escheat, crosses the constitutional line. Whether a taking has occurred considers the character of the government action, the extent to which it interferes with distinct investment-backed expectations, and the economic impact, but the wholesale destruction of a core property attribute is strongly indicative of a taking.
Yes. Section 207 of the Indian Land Consolidation Act, which abolished both descent and devise of certain fractional interests and mandated their uncompensated escheat to the tribe upon the owner's death, effected a taking in violation of the Fifth Amendment.
Hodel v. Irving is frequently taught for two propositions. First, it frames the right to transfer property at death as a protected stick in the property bundle, cabining the government's power to restructure succession rules without compensation. Second, it delineates the constitutional boundary of escheat: while escheat remains a valid governmental tool, it cannot be used to abolish both descent and devise for a class of property and channel title to the state or tribe without just compensation. The decision influenced subsequent legislation and litigation, including Babbitt v. Youpee, and remains central in takings analysis where statutes target discrete incidents of ownership rather than physical possession or traditional land-use regulation.