Detailed Answer
When an heir in Missouri receives net proceeds from a real property sale, they must sign specific authorization forms at closing and when the personal representative distributes funds. These documents ensure the court and title company can disburse sale proceeds correctly and comply with state law.
1. Probate Court Documents
If the sale occurs under probate, the personal representative must petition the court for authority to sell and to distribute the proceeds. Key forms include:
- Order for Sale (Mo. Rev. Stat. § 473.370): A court-issued order authorizing the sale of real property. Though signed by the judge, heirs often consent or waive objections in a written consent form filed with the court. Mo. Rev. Stat. § 473.370.
- Final Account and Petition for Distribution (Mo. Rev. Stat. §§ 473.420–473.430): The personal representative files a final accounting and petition for distribution. Heirs may sign waivers of further notice or objections to expedite distribution. Mo. Rev. Stat. § 473.430.
- Receipt and Release: A non-statutory but standard form prepared by the personal representative or court clerk. Each heir signs to acknowledge receipt of their share and release the representative from further liability.
2. Title Company and Closing Documents
Title companies require heirs to sign several documents at closing to verify payee information, clear title, and comply with federal tax reporting:
- Affidavit of Heirship (if sold outside probate): Under Mo. Rev. Stat. § 461.041, heirs swear to their relationship to the decedent and that no other heirs exist. This affidavit clears title when no personal representative is appointed.
- IRS Form W-9: Each heir provides a W-9 to furnish their Taxpayer Identification Number (SSN or EIN) so the title company can issue Form 1099-S for reportable real estate transactions.
- Disbursement Authorization: A title-company prepared form listing payee names, addresses, share percentages, and payment instructions (wire or check). Heirs must sign to authorize the release of net proceeds directly to them.
- ALTA Settlement Statement: Also known as a HUD-1 in certain transactions, this form outlines sale proceeds, liens, costs, and net distributions. Heirs sign to confirm the breakdown of funds.
3. Deeds and Transfer Documents
Once proceeds are distributed, heirs should keep copies of:
- Recorded Affidavit of Heirship or Deed: If proceeds replace an in-kind property transfer, heirs sign a quitclaim or special warranty deed conveying any retained interests.
By signing these forms, heirs direct the court and title company to distribute sale proceeds according to Missouri law and the decedent’s estate plan or intestacy rules.
Helpful Hints
- Start tax-ID collection early—provide W-9s before closing to avoid delays.
- Review the Disbursement Authorization form carefully; confirm percentages match court orders or intestacy shares.
- Keep copies of all signed receipts and affidavits for your records.
- Coordinate with the personal representative and title officer; clear communication prevents hold-ups.
- Ask your attorney or the court clerk for standard receipt and release templates to ensure full discharge of liability.