Detailed Answer

In Louisiana, when a sheriff’s sale of immovable property produces proceeds exceeding the debt, the excess amount (“surplus proceeds”) belongs to the former owner. If that owner has died, the surplus becomes an asset of the decedent’s succession and only individuals with a legal right in that succession may claim it. Below is an overview of the statutory framework and how surplus proceeds pass when the property was titled solely in a deceased spouse’s name.

1. Surplus Proceeds and Succession

Louisiana Code of Civil Procedure article 4919 defines surplus proceeds as any amount realized at a sheriff’s sale in excess of the principal debt, interest, taxes, and costs. Those funds are due to the property owner. When the owner is deceased, the surplus passes into the succession estate for distribution to heirs or legatees. (La. C.C.P. art. 4919)

2. Claiming the Surplus

Under C.C.P. art. 4921, any person asserting a right in the surplus must file a petition in the court that ordered the sale. The petition must identify the decedent, describe the sale, and state the claimant’s interest. Claimants have two years from the date of sale to file. If unclaimed after two years, the funds escheat to the state treasury. (La. C.C.P. art. 4921; La. C.C.P. art. 4905)

3. Distribution Through Succession

Once the surplus enters the succession, it follows the rules for distributing a decedent’s assets. If there is a valid will, the surplus is paid to legatees named in that testament. Without a will, the estate—including the surplus proceeds—is distributed under Louisiana’s intestate succession scheme, as set forth in Civil Code articles 890–892. (La. Civ. Code art. 890; La. Civ. Code art. 892)

Intestate Succession Order of Inheritance

Forced heirs (minor children or those under permanent interdiction).
Surviving spouse.
Other children and their descendants.
Parents and siblings if no descendants.
More remote relatives if no closer heirs.

4. Surviving Spouse’s Share

The surviving spouse’s intestate share depends on who else survived the decedent. Under Civil Code article 892:

No descendants or ascendants: spouse inherits the entire estate.
Only descendants: spouse inherits one-quarter; descendants share three-quarters.
Only ascendants (parents or grandparents): spouse inherits one-half; ascendants share half.
Both descendants and ascendants: spouse inherits one-third; the remainder goes to descendants or ascendants by proximity.

Remember that forced heirs (minor children or permanently interdicted persons) have a reserved portion that cannot be reduced below statutory minimums. (La. Civ. Code art. 891)

Helpful Hints

Act promptly: you generally have two years from the sheriff’s sale to file your surplus petition.
Gather key documents: the decedent’s death certificate, succession papers (act of possession or order of probate), and sale records.
If a will exists, locate it before proceeding under intestate rules.
Forced heirship rules may protect minor children’s shares—consult an attorney if you have minor or interdicted beneficiaries.
Unclaimed surplus funds after two years become state property, so timely action is crucial.