FAQ: How do I claim surplus funds from a tax foreclosure sale in Kentucky?

Short answer: If a tax foreclosure sale of your mother’s house produced surplus (money left after satisfying the delinquent taxes, interest, penalties, fees, and valid liens), the usual claimants are the former owner or the owner’s heirs or personal representative. To recover those funds in Kentucky you must locate the surplus, assemble proof of entitlement (ownership or inheritance), and file the required claim with the local office handling the sale—usually the county sheriff or circuit court—within the deadlines set by Kentucky law and local practice. If the owner is deceased, you will likely need probate documents or a court order authorizing distribution to heirs.

Detailed answer — step-by-step under Kentucky procedures

This answer explains the practical steps you should take and the typical legal checkpoints under Kentucky practice. It is not legal advice.

1. Confirm whether a surplus exists and where the funds are held

When a county sheriff sells property at a tax sale, the sale proceeds first pay taxes, interest, penalties, and the sheriff’s and advertising costs. If the sale price exceeds those charges and any prior recorded liens that the sale extinguished, the remaining balance is called a surplus or overage.

Start by contacting the county sheriff’s office that conducted the sale and the county clerk’s office where the sale was recorded. Ask whether the sheriff holds surplus funds from the sale and whether any claims have already been made. County procedures vary, but the sheriff is the usual first contact for tax sales in Kentucky.

2. Identify who is eligible to claim the surplus

Title owner of record at the time of the sale (even if the owner is deceased).
Heirs or beneficiaries if the owner died before claiming—usually represented by the personal representative or through probate.
Creditors or lienholders may have priority depending on the order of liens recorded before the sale. A detailed ledger from the sheriff or clerk will show what liens were paid.

3. Gather required documents

Typical documents you will need:

Proof of identity (government ID).
Proof of ownership (deed, tax records, or the sheriff’s sale paperwork showing the former owner).
If the owner is deceased: death certificate plus probate papers (letters of administration or appointment of personal representative), or a small-estate affidavit if state law and county practice allow.
Affidavit of heirship, certified copies of wills, or a court order directing distribution if required by the county or court.
Any assignment or lien documentation if another party claims interest.

4. File the claim in the right place and follow the required formality

Counties differ. In many Kentucky counties you submit a written claim to the sheriff with copies of the supporting documents. In other situations—especially if there is a dispute, a deceased owner, or competing claimants—you may need to file a petition in the county’s Circuit Court asking for an order directing the sheriff to pay the surplus to you.

Ask the sheriff’s office whether they have a standard surplus-claim form and whether they require a court order. If the sheriff directs you to the Circuit Court, you will generally prepare a petition asking the court to adjudicate entitlement and order distribution. If probate is already open, the personal representative can request distribution of the surplus through the probate proceeding.

5. Watch timing and deadlines

Deadlines vary. Some counties treat surplus as held indefinitely until claimed, and others have statutory or procedural time limits for making a claim or for the county to escheat unclaimed funds. Acting quickly is important. If the owner is deceased, open probate early so the personal representative can assert the claim as part of estate administration.

6. Expect potential disputes and how they are resolved

Competing claims can arise from prior lienholders, purchasers at sale, or third parties who claim assignment of rights. If a dispute exists, the sheriff will typically refuse to disburse funds until a court order resolves competing claims. That means you may have to litigate entitlement in Circuit Court.

7. Consider hiring an attorney in these circumstances

If the surplus amount is significant, if the owner is deceased with multiple potential heirs, if liens or purchasers claim priority, or if the clerk/sheriff requires a court order, consult a Kentucky attorney who handles tax sales, probate, or real estate litigation. An attorney can prepare petitions, represent you in court, and help resolve competing claims efficiently.

Statutory and judicial resources: Kentucky tax sale and property procedures are found in the Kentucky Revised Statutes and local circuit court practice. For general statute lookup and specific chapters, use the Kentucky Legislature website: https://apps.legislature.ky.gov/. For court forms or local practice rules, consult the Kentucky Court of Justice: https://kycourts.gov/. Your county sheriff’s and clerk’s offices can provide county-specific steps and forms.

Helpful Hints

Contact the county sheriff’s office where the tax sale occurred first. They often hold the surplus or can tell you where it is.
If the owner died, start probate right away. The personal representative should include the surplus claim in estate administration.
Bring certified copies of the death certificate and probate appointment when you contact county officials.
Keep originals and provide copies of deeds, tax bills, sale notices, and sheriff’s sale paperwork to support your claim.
Ask whether the sheriff has a standard surplus claim form or whether you must file a petition in Circuit Court.
Get everything in writing—emails or stamped receipts—so you have a record of what the county told you and when.
Beware of scammers offering to recover surplus funds for an upfront fee. Confirm any recovery service’s legitimacy and avoid paying large fees before seeing results.
If the matter becomes contested, consider hiring a Kentucky lawyer with experience in tax sales, probate, or real estate disputes.

Disclaimer

This article is for general informational and educational purposes only. It does not constitute legal advice. Laws and procedures change. For advice tailored to your situation, consult a licensed attorney in Kentucky.