Detailed answer — how surplus proceeds are handled in Hawaii when the owner dies intestate

When a property produces surplus proceeds (for example, after a foreclosure sale or after a court-ordered sale to satisfy debts) those surplus funds become an asset of the decedent’s estate. If the decedent died without a will (intestate), Hawaii’s intestacy rules determine who is entitled to the money. The estate must be administered and the surplus distributed to heirs after creditors and administration costs are paid.

Key points, in order:

1. Surplus is an estate asset. Any net money remaining after sale costs, liens, and valid creditor claims is part of the decedent’s estate. The personal representative (executor/administrator) of the estate is responsible for collecting that money and using it to pay debts and expenses of administration.
2. Probate or an ancillary procedure is usually required to claim the funds. To obtain the surplus, someone typically must open a probate (or small-asset probate) proceeding so the court can appoint a personal representative who has legal authority to collect and distribute estate assets. In some circumstances (small estates or statutory procedures), there are streamlined filings available. See Hawaii probate information from the state courts for process and forms: https://www.courts.state.hi.us/self-help/probate_and_guardianship
3. Creditors and costs get paid first. Before heirs receive any surplus, the estate must pay valid creditor claims, funeral and administrative costs, taxes, and court fees. Only the remaining balance is distributed to heirs under intestacy rules.
4. Heirs under Hawaii intestacy law. If the decedent left no valid will, the Hawaii Revised Statutes set the order of distribution. Generally: spouse and descendants (children) share first; if there is no spouse or descendants, then parents inherit; if no parents, siblings inherit. If siblings have died but left children, those children may inherit by representation. The governing rules are in Hawaii’s intestate succession statutes (Haw. Rev. Stat. ch. 560): https://www.capitol.hawaii.gov/hrsCHAPTER.aspx?ch=560
5. Example (hypothetical). Imagine a house is sold and produces $200,000 in surplus after satisfying the mortgage and sale costs. The owner died intestate and left no spouse, no children, and no living parents, but had three surviving siblings. After opening probate, paying funeral costs and any creditor claims, the remaining surplus would be distributed equally among the three siblings (subject to any representation claims if one sibling predeceased leaving children).
6. Sibling relationship details. Full siblings and half-siblings are often treated similarly by intestacy statutes, but representation rules (when a sibling predeceases) determine whether that deceased sibling’s children inherit their parent’s share. The personal representative and the probate court apply the statute to the family facts.
7. Timing and claims for surplus from a sale. If a third party (for example, a sale officer or foreclosure trustee) is holding surplus funds, heirs or the estate’s representative must typically file a claim or ask the probate court for an order directing distribution. There may be statutory notice and timing requirements for claiming surplus funds — don’t assume funds will be released without a court process or properly appointed representative.

Primary legal authority on who inherits when someone dies without a will is found in Hawaii’s intestacy statutes: see Haw. Rev. Stat. ch. 560 (intestate succession): https://www.capitol.hawaii.gov/hrsCHAPTER.aspx?ch=560. For probate procedures and how to open an estate in Hawaii, see the Hawaii State Judiciary’s probate and guardianship self-help pages: https://www.courts.state.hi.us/self-help/probate_and_guardianship

Bottom line: Surplus sale proceeds become estate property. If the owner died without a will, the probate process must typically be used to collect and distribute that money. If there is no spouse, descendant, or parent, siblings will inherit according to Hawaii’s intestacy rules, usually in equal shares unless statute or family facts indicate otherwise.

Disclaimer: This information explains general principles of Hawaii law and is not legal advice. For advice about a specific situation — deadlines, filing requirements, or how to claim surplus funds — consult a licensed Hawaii attorney.

Helpful Hints — practical steps when surplus proceeds and siblings are involved

• Start by locating basic documents: the death certificate, deed/title, mortgage and sale paperwork, and any sale/foreclosure notices.
• Check whether a personal representative was already appointed. If not, open probate (or an informal/small estate procedure if the law allows).
• Ask the holder of the surplus (trustee, sheriff, or court clerk) what paperwork they require to release funds to an estate representative.
• Gather contact information for all potential heirs (spouse, children, parents, siblings) and be prepared to provide the court with a family tree or affidavit of heirship if needed.
• File creditor notices promptly and verify creditor claims before distribution — unpaid creditors can expose heirs to later claims if administration was incomplete.
• If siblings cannot agree on distribution, consider mediation or ask the probate court to resolve contested heirship or accounting issues.
• Consult a probate attorney if the surplus is substantial, if heirs are contested, or if foreign assets or out-of-state heirs complicate the case.