Disclaimer: This is general information only and not legal advice. It does not create an attorney-client relationship. For advice about your situation, consult a Maine attorney.

Quick overview

When a property owner dies without a will (intestate) in Maine, any surplus money that remains from a sale of the decedent’s property (for example, after a foreclosure sale or a forced sale that pays off liens and costs) becomes part of the decedent’s estate. The estate’s personal representative or the court sorts and pays claims first, then distributes what remains to the decedent’s heirs under Maine’s intestacy rules. If siblings are the closest surviving relatives, the siblings (or their children, if a sibling predeceased) typically inherit the surplus, divided according to the statutes.

Detailed answer

1. What are “surplus proceeds”?

“Surplus proceeds” are the funds left over after a property sale pays the valid liens, mortgage(s), sale costs, and any statutory fees. For example, if a foreclosure sale brought in more than the outstanding loan balance and costs, the extra amount is surplus. If the owner died before the surplus was paid out, those funds belong to the decedent’s estate.

2. Who controls the surplus when the owner dies intestate?

Once the owner dies, the probate process (or an equivalent court process for distributing sale proceeds) controls who can claim the surplus. The court appoints a personal representative (called an administrator when there is no will) to collect assets, pay valid debts and expenses, and distribute the remaining assets to heirs. Until the probate court authorizes distribution, the surplus is held for the estate.

3. How Maine law determines which relatives inherit

Maine’s intestacy rules set the order of inheritance. The exact distribution depends on which relatives survive the decedent. In general:

• If the decedent had a surviving spouse or children, they usually take before siblings.
• If there is no spouse or descendant, but the decedent’s parents are alive, parents inherit next.
• If there are no parents, surviving siblings (or their descendants by representation) inherit.

That means siblings receive surplus proceeds only if they are the heirs under the intestacy order. If a sibling predeceased the decedent but left children, those children often inherit their parent’s share.

For the statutory order and details, see Maine’s probate and intestacy provisions: Maine Revised Statutes, Title 18‑B (intestacy rules).

4. Practical steps siblings should expect

1. Identify whether the sale produced surplus proceeds and where those funds are held (often in the court registry, with the foreclosure trustee, or by the sheriff/charging officer).
2. Open a probate estate or a small estate proceeding in Maine, if not already opened. A probate court appoints an administrator who can claim and distribute the surplus.
3. The administrator locates heirs, notifies creditors, pays valid claims and taxes, and then distributes remaining funds to heirs according to Maine law.
4. If multiple siblings claim the same surplus, the court decides distribution based on the proof of relationship and intestacy rules.

5. Special issues siblings should know about

• Priority of claims: funeral expenses, administrative costs, and creditor claims are paid before heirs receive distribution.
• Competing claims: if someone else (for example, a surviving spouse, child, or a judgment creditor) claims the surplus, the court resolves the dispute.
• Representation and per stirpes distribution: if a sibling died before the decedent, that sibling’s children may take the deceased sibling’s share (this depends on how Maine’s statutes apply to representation).
• Timing and paperwork: siblings may need certified death certificate(s), proof of kinship (birth certificates, family records), and to file forms with the probate court to secure distribution.

6. Example (hypothetical)

Mary owns a house subject to a mortgage. The mortgage holder forecloses and sells the property for $150,000. The mortgage and liens total $120,000 and sale costs are $5,000, producing a $25,000 surplus. Mary died without a will and had no surviving spouse or children, but she had two living siblings. After a probate administrator pays any estate administration costs and confirms heirs, the $25,000 surplus would be distributed to the two siblings equally (subject to any higher-priority claims). If one sibling had died earlier leaving two children, those two children would typically split that deceased sibling’s share.

Helpful Hints

• Act quickly. Courts and holders of surplus funds may have procedures and deadlines for filing claims.
• Gather documents: death certificate, proof of family relationships, mortgage and lien payoff figures, and any notice of sale or surplus account information.
• Open a probate or small estate proceeding if needed. Small estate procedures can be faster and less expensive in some cases.
• Expect creditors and administrative costs to be paid first. The net amount after those payments is what passes to heirs.
• If multiple relatives claim the surplus, ask the court to appoint an administrator and resolve competing claims through the probate process.
• Consult a Maine probate or real estate attorney if the surplus is large, if heirs disagree, or if complex liens or creditor claims exist.