Detailed Answer

Short answer: When a property owner in California dies without a will, any surplus proceeds from the property sale generally become part of the decedent’s estate. The surplus is distributed under California’s intestate succession rules. If there is no surviving spouse, children, or parents, the decedent’s siblings (or their descendants by representation) will inherit the surplus in shares prescribed by the Probate Code. To obtain the funds, an heir or an appointed representative normally must open probate or use a small‑estate procedure when eligible.

How surplus proceeds become estate property

“Surplus proceeds” means money left after paying valid debts, liens, and sale costs when real property is sold (for example, after a foreclosure sale or a probate sale). If the decedent owned the property alone, any surplus from that sale is part of the decedent’s estate at death. The estate is the legal pool of assets used to pay creditors and to distribute whatever remains to heirs.

Who inherits under California intestacy rules

Intestate succession is governed by the California Probate Code (Division 6).

If the decedent left no surviving spouse, no surviving children, and no surviving parents, the estate passes to the decedent’s siblings (brothers and sisters). If a sibling predeceased the decedent but left children (the decedent’s nieces or nephews), those children generally inherit their parent’s share by representation (commonly called “per stirpes” distribution).

For a complete statement of how intestate shares are allocated, see California Probate Code, Division 6: Probate Code — Division 6 (Intestate Succession).

Practical steps to get surplus proceeds when the owner died intestate

Confirm the money is surplus. Ask the trustee, county, or sale officer for an accounting showing sale price, liens, fees, and the remaining balance.
Identify heirs. If the decedent left no will, gather facts about surviving relatives (spouse, children, parents, siblings, nieces/nephews).
Decide the legal route to claim funds:
- If the estate is large or there are competing claims, open probate and ask the court to appoint an administrator (letters of administration). The administrator will collect estate assets (including surplus proceeds) and distribute them under the Probate Code.
- If the only asset to be collected is the surplus and the total estate falls under the small‑estate threshold, you may qualify to use California’s small‑estate procedures (for example, a small‑estate affidavit) to collect funds without formal probate. See California Probate Code §13100 and following: Probate Code §13100.
Provide required documents. Typical documents include a certified death certificate, identification, proof of relationship (birth certificates, family records), and proof that you are the person entitled to act (letters of administration or an affidavit permitted by law).
Resolve competing claims. If other parties (creditors, lienholders, other relatives) claim the funds, the county or trustee may require a court order or a waiting period. If contested, the matter may need a probate hearing.
Distribution. After administration and creditor claims are resolved, the administrator or approved claimant transfers the surplus to the heirs in shares determined by intestate succession.

Common complications

Multiple potential heirs. When siblings and nieces/nephews exist, determining exact shares can require tracing family relationships and applying representation rules under the Probate Code.
Unknown or missing heirs. The administrator must make a reasonable search for heirs; the court may require formal notice and bonding.
Priority claims. Secured creditors and lienholders are paid before heirs receive any surplus. Confirm that all valid liens and costs are satisfied.
Time limits and notice rules. Depending on the type of sale that produced the surplus (for example, a foreclosure), claim deadlines or special notice rules may apply. Consider acting promptly.

Useful California statutes and resources

Probate Code — Division 6 (Intestate Succession): https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=PROB&division=6
Small‑estate procedures (summary collection and affidavits): Probate Code §13100
Practical court guidance on probate and administration: California Courts — Self‑Help (Probate): https://www.courts.ca.gov/selfhelp‑probate.htm

Helpful Hints

Act quickly: surplus funds sometimes have claim deadlines or special procedures tied to the type of sale. Don’t wait to gather documents and seek a route to claim the funds.
Collect proof of family ties: birth certificates, marriage certificates, and other records make proving intestate heirship much easier.
Check for a will: even if you think there is none, search records and talk to close contacts — a will changes distribution completely.
Consider small‑estate procedures: if the estate is small, you may avoid full probate and use a small‑estate affidavit to get funds faster and cheaper. See Probate Code §13100.
Get professional help when needed: if multiple siblings or other claimants dispute shares, or if creditors assert claims, a probate lawyer can help secure the funds and protect your rights.
Keep good records: save correspondence, accountings, death certificate copies, and any court filings — you’ll need them to prove entitlement and to close the estate.

Disclaimer: This article is for general informational purposes only and is not legal advice. It does not create an attorney‑client relationship. Laws change and each case has unique facts; consult a licensed California attorney or the court for advice tailored to your situation.