Detailed Answer
When heirs sell real property as part of a Mississippi estate, closing agents and courts require specific forms to confirm ownership interests and direct distribution of net sale proceeds. Below is an overview of the key authorization forms every heir must sign:
1. Distribution Authorization Form
Most title companies or escrow agents prepare a Heirs Direction for Distribution of Proceeds or Disbursement Authorization form. You use this to instruct the agent where to send your share of the sale net proceeds. Typical details include:
- Your name, address and Social Security number;
- Your percentage interest in the sale proceeds;
- Bank account or wire transfer instructions;
- Date and signature.
2. IRS Form W-9
Escrow agents require each heir to submit a completed IRS Form W-9 to report proceeds under federal tax rules. If you fail to provide a W-9, the agent may withhold backup withholding (currently 24%) per 26 U.S.C. § 1445(e).
3. Receipt and Release
Under Miss. Code Ann. § 91-7-217, each heir signs a Receipt and Release acknowledging receipt of their net proceeds and releasing the personal representative and estate from further claims. The original receipt files with the Chancery Court clerk, and a copy goes in the estate file.
4. Affidavit of Heirship or Affidavit of Entitlement
If the estate qualifies for summary administration as a small estate (assets under $75,000, excluding homestead), heirs may use an Affidavit of Entitlement to claim sale proceeds without formal probate under Miss. Code Ann. § 91-7-231. This affidavit names all heirs, describes the decedent’s ownership and allocates shares.
5. Court-Approved Order of Distribution (if required)
When an estate undergoes full probate, the Chancery Court issues an Order of Distribution directing the personal representative to disburse funds per heir shares. Courts approve final distribution under Miss. Code Ann. § 91-7-253. Heirs should review and sign any acknowledgments as required by the court.
Helpful Hints
- Double-check the spelling of your name and tax ID on every form.
- Provide bank instructions via a secure portal or encrypted email.
- Confirm with the personal representative or closing agent if any additional formssuch as waivers of homestead or spousal rightsapply.
- Keep copies of all signed documents and filed court orders for your records.
- Watch for undisclosed liens or creditor claims before distribution; courts must clear all debts under Miss. Code Ann. § 91-7-215.
- Consider consulting a probate attorney if heirs dispute property interests or if you encounter unclear distribution instructions.