Claiming surplus funds as an heir

Heirs have a right to the money

Surplus from a sale belongs to the former owner, so when the owner has died it becomes part of the estate and passes to the heirs, or to the people named in the will. Whoever holds the money will release it only to someone who can prove they are entitled to it. In some states the claim can pass only this way: in Michigan, the right to tax sale surplus cannot be sold, only inherited.

What the court needs to see

Proof of who the heirs are, usually in one of these forms, depending on the state:

• A will and an order or letters from the probate court.
• An affidavit of heirship, a sworn statement of the family facts.
• A small estate affidavit, where the estate is small enough.

The court or county will also want the owner’s death certificate and a photo ID for each heir who claims.

Small estates

Many states offer a shortcut for small estates, but each sets its own limit and rules:

• Texas: a small estate affidavit when there is no will, the estate is $75,000 or less not counting the homestead and exempt property, at least 30 days have passed, nothing is pending in probate and a judge approves it.
• Michigan: small estate procedures with a $50,000 base limit, adjusted for inflation.
• California: a small estate affidavit for heir claims.
• Ohio: a release from administration for small estates.
• Georgia: no dollar-limit small estate affidavit. For money already held by the state, heirs can file an affidavit signed by all of them when the total is $7,500 or less and no Georgia probate case has ever been filed.

The affidavit of heirship

Some states accept an affidavit of heirship, a sworn statement of who the owner’s family members are, often recorded with the county. In Texas, once it has been recorded for five years, it counts as evidence of the facts in it.

When there are several heirs

Usually everyone who is entitled takes part in the claim or signs off on it, and each needs a photo ID. One missing signature can hold up the whole family, so it helps to have one person keep the paperwork together.

When you need an attorney

In many states, filing court papers for someone else is the practice of law, so a recovery company cannot file a court claim on your behalf. When there is a will to probate, a probate case already open, or a disagreement between heirs, a licensed attorney should handle the filing.

Watch the deadline

The deadlines that apply to owners apply to heirs too, and opening an estate takes time. Some states will not pay an heir until an estate or a small estate affidavit is in place, so start the paperwork as soon as you learn about the money.

A checklist for families

1. Find the sale: the county, the date and the case or sale number.
2. Get certified copies of the death certificate.
3. Find the will, if there is one, and any probate case number.
4. List every heir with current contact details.
5. Collect a photo ID for each heir who will claim.
6. Decide who will file: the family, or a licensed attorney.