Detailed Answer
When a decedent’s real property sells under Virginia law, proceeds pass through the estate’s administration or by agreement of heirs. Heirs cannot direct funds disbursement without signing specific authorization forms that establish heir status, waive further claims, and instruct the closing agent on payment. Below are the most common forms, along with the legal framework that governs their use.
1. Affidavit of Heirship
This sworn statement identifies all legal heirs of the decedent and confirms there are no other claimants. Title companies and closing attorneys use it to clear title and establish distribution shares. While Virginia law does not prescribe a standard statutory template, many attorneys use a form similar to the one in Estate of Doe practice guides. You should include:
- Decedent’s full name and date of death.
- Names, relationships, and addresses of all heirs.
- Statement that no heir has died or disputed the inheritance.
- Notarization and, if required, witness signature.
2. Waiver of Administration (if applicable)
If all heirs agree to bypass formal probate and appoint no personal representative, they may execute a Waiver of Administration under Va. Code § 64.2-502 (Waiver of Administration). This document:
- Registers each heir’s election to take their intestate share immediately.
- Relieves heirs of bond requirements and ongoing estate costs.
3. Distribution Authorization or Closing Instructions
Closing agents, title insurers, and escrow companies typically require a signed Disbursement Authorization or Closing Instructions form. This is not a statutory form but a standard industry document. It spells out:
- Names and contact information of the payees (heirs).
- Percentage or dollar amount each heir will receive.
- Banking instructions for wire transfer or checks.
- Acknowledgment that funds will be distributed in full satisfaction of each heir’s claim.
4. Receipt and Release (Consent to Distribution)
After disbursement, each heir signs a Receipt and Release form. While not mandated by statute, this document:
- Confirms the heir has received the stated share of net proceeds.
- Releases the personal representative, closing agent, and title company from further claims related to the sale.
Key Statutes Governing Sale of Estate Real Estate
- Va. Code § 64.2-1304 (Sale of Real Estate by Personal Representative) – authorizes court-approved sale.
- Va. Code § 64.2-502 (Waiver of Administration) – permits heirs to elect distribution without probate.
- Va. Code § 55.1-710 (Owner’s Affidavit of Title) – used to certify ownership and absent claims.
In practice, your estate attorney or closing agent prepares these forms. Ensure every document is correctly completed, signed, and notarized where required. Keep copies for your records.
Helpful Hints
- Consult an estate lawyer before signing any waiver or distribution authorization.
- Confirm the exact form titles and requirements with your closing agent or title company early in the process.
- Ensure all heirs agree on share percentages before executing instructions.
- Maintain clear records: keep originals and provide copies to all heirs.
- Verify that any waiver of administration meets Virginia Code § 64.2-502 eligibility—missing this may invalidate the waiver.
- Ask your bank or escrow agent about wiring vs. check disbursement timelines to plan accordingly.