Detailed Answer
When creditors enforce a judgment against real estate in a court-ordered sale, they may generate funds exceeding the debt and costs. Under Delaware Code Title 10, Section 3902, the sheriff must hold these “surplus proceeds” and pay them to the person entitled by court order (10 Del. C. § 3902).
If the property was titled solely in a deceased spouse’s name, the surplus belongs to that spouse’s estate. The personal representative of the estate must file a petition in the Court of Common Pleas or Superior Court to claim the funds. After the court issues an order, the sheriff disburses the surplus to the personal representative.
The personal representative then distributes the funds according to Delaware probate rules. If the decedent left a valid will, the will controls distribution, subject to the statutory allowance for a surviving spouse under 12 Del. C. § 503 (12 Del. C. § 503).
If the decedent died intestate (without a valid will), the court follows the intestate succession scheme in 12 Del. C. § 901 (12 Del. C. § 901). Key points include:
- Surviving spouse receives the entire estate if there are no descendants or parents of the decedent.
- If the decedent has descendants but no surviving parent, the spouse receives the first $50,000 plus one-half of the balance; descendants share the remainder.
- If the decedent leaves a surviving parent but no descendants, the spouse inherits the entire estate.
- In other scenarios, the court divides assets among spouse, descendants, and parents per statute.
Helpful Hints
- File a petition for surplus promptly to avoid unnecessary delays or challenges.
- Prepare key documents: certified death certificate, letters testamentary or administration, and case details.
- Verify whether a valid will exists and review any specific gifts or conditions.
- Consult a Delaware probate attorney to guide you through court hearings and procedural requirements.
- Investigate potential liens or creditor claims against the estate before distributing surplus funds.