Understanding Authorization Forms for Distribution of Real Property Sale Proceeds in Illinois
Detailed Answer
When a personal representative sells a decedent’s real estate in Illinois, the net proceeds must flow through the probate process. Heirs who wish to direct or receive their share of those proceeds typically sign three main types of forms:
- Petition for Sale of Real Estate and Waiver & Consent to Sale:
Under 755 ILCS 5/4-1, a personal representative must petition the court for authority to sell real property. If all interested heirs agree, they can each sign a “Waiver & Consent to Sale” form. Doing so speeds up the process and may eliminate the need for a court hearing. See 755 ILCS 5/4-1: ILCS 5/4-1.
- Receipt and Release of Distribution:
After sale and payment of debts and costs, the personal representative prepares a final account and distribution schedule. Each heir signs a “Receipt and Release” form acknowledging the amount they received and releasing the estate from further claims regarding those funds.
- Disclaimer and Renunciation:
Under 755 ILCS 5/2-6, an heir may choose to disclaim (refuse) part or all of their interest in the estate. To do this, they must file a written disclaimer with the probate court clerk within nine months of the decedent’s death. A valid disclaimer affects how sale proceeds distribute among the remaining heirs. See 755 ILCS 5/2-6: ILCS 5/2-6.
If heirs cannot agree on distribution or decline to sign waiver forms, the personal representative must seek a court order approving the sale and directing distribution according to the Illinois Probate Act’s intestacy provisions (755 ILCS 5/2-1 et seq.).
Helpful Hints
- Obtain standard probate forms from the circuit court clerk or Illinois Supreme Court website before signing.
- Review each form carefully and confirm all heirs’ names are spelled correctly.
- File any disclaimer of interest within nine months of the decedent’s date of death to ensure validity.
- Keep copies of all signed waivers, receipts, and disclaimers for your records.
- Consult a probate attorney if heirs disagree or if the estate involves complex assets or tax issues.