Detailed Answer
Understanding Surplus Proceeds
In Georgia, surplus proceeds arise when a foreclosure or tax sale of real property produces funds exceeding the outstanding debt, interest, and sale costs. The clerk of superior court holds these funds until a valid claimant applies. (See O.C.G.A. § 44-14-462)
Eligible Claimants When Property Was in the Deceased Spouse’s Name
If the property stood solely in the name of a spouse who has died, the surplus belongs to the decedent’s estate. Eligible claimants include:
- The personal representative (executor or administrator) appointed by the probate court
- Beneficiaries named in a valid will
- Heirs at law under Georgia’s intestate succession (surviving spouse, children, and other next of kin) per O.C.G.A. § 53-2-1
Under intestacy, the surviving spouse inherits all assets if there are no descendants. If descendants exist, the spouse receives one-half and the descendants share the remainder. (O.C.G.A. § 53-2-1)
Elective Share Rights
A surviving spouse may reject the will’s provisions and claim an elective share in the decedent’s net estate under O.C.G.A. § 53-2-31. The elective share can affect surplus distribution if the decedent left a will favoring others.
Distribution Procedure
To claim surplus proceeds, eligible parties must file a written claim with the clerk of the superior court in the county where the sale occurred within 12 months of the sale date. The claim should include:
- Certified copy of the decedent’s death certificate
- Letters testamentary or letters of administration
- Copy of the will (if applicable)
- Proof of identity and relationship
If no claim appears within 12 months, unclaimed funds escheat to the county treasury. (O.C.G.A. § 44-14-482)
Helpful Hints
- Contact the clerk of superior court promptly to confirm deadlines.
- Consult a probate attorney if you serve as personal representative.
- Gather all probate documents before filing your claim.
- Review Georgia’s intestate succession rules to verify your share.
- Keep copies of all filings and correspondence.