Detailed answer: How to claim surplus funds after a tax foreclosure sale in Montana

If a property in Montana was sold at a tax foreclosure (tax deed or tax sale) and the sale produced money in excess of the taxes, penalties, interest and statutory costs, those excess funds (often called surplus proceeds, overages, or excess proceeds) may be payable to certain entitled parties. The process in Montana generally involves identifying whether a surplus exists, confirming who has the legal right to claim it, collecting required paperwork, and making a claim with the county that conducted the sale or through the appropriate court/probate process.

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

Start with the county treasurer, county clerk of court, or the office that handled the tax sale. Ask for:

• Records of the tax foreclosure/tax deed sale (sale date, sale price, and distribution report).
• Any accounting showing the amount used to satisfy taxes and costs and whether any excess remains.

Each Montana county manages tax sales slightly differently. County officials will tell you whether funds are being held as surplus and how to submit a claim.

2. Determine who is legally entitled to the surplus

Possible claimants commonly include:

• The former owner (your mother) or her estate if she is deceased.
• Holders of recorded liens (mortgages, judgment liens) who may have priority for some or all of the surplus.
• Other persons who can prove a superior legal interest in the property.

Priority rules vary by type of lien and how the tax sale notice and process were carried out. Confirm priority and distribution rules with county officials and, if needed, an attorney.

3. If your mother is alive and is the former owner

You will need to help her assemble identity and ownership documentation, and either she must sign claim forms or you must have a valid power of attorney. Typical items the county will request include:

• Government ID for the claimant.
• Proof of property ownership (deed, tax records).
• A completed surplus claim form (many counties provide one).

4. If your mother is deceased

When the former owner is deceased, most counties will not pay surplus funds to a random family member. The county typically requires one of the following before releasing funds:

• Letters of appointment or letters testamentary (formal appointment of a personal representative or executor) from the probate court.
• A small‑estate affidavit or other simplified probate documentation if Montana law allows and the estate qualifies.
• A certified death certificate and proof that the claimant is the lawful heir under Montana probate rules (often accompanied by a court order).

If the estate was never opened, you may need to open probate in the Montana district court for the county where the property was located or use a small estate procedure if eligible. For guidance on Montana probate procedures, see the Montana Code and the Montana Courts self-help pages: Montana Code Annotated (searchable) and Montana Courts – Self Help.

5. Documents you will likely need to submit

• Completed county surplus claim form (if provided).
• Proof of your identity (government ID).
• Proof of your relationship to the former owner (birth certificate, affidavit of heirship, or letters of appointment).
• Certified copy of the former owner’s death certificate, if applicable.
• Letters of administration, letters testamentary, or a small estate affidavit if required by the county.
• Copies of sale documents from the county showing the sale price and distribution.

6. How to file the claim

Procedures vary by county but typically follow one of these paths:

• Administrative Claim with County Treasurer/Clerk: Many counties accept a direct claim package and will review and issue a check to an approved claimant.
• Court Petition: If there is a dispute (competing claimants, unclear entitlement), the county or an interested person may petition the district court to adjudicate distribution of the surplus.

Contact the county treasurer’s office or county clerk first. They will tell you their preferred process and provide the required forms and proof list.

7. Timing and statute of limitations

Deadlines for claiming surplus funds differ by jurisdiction and by the particular statutes governing tax sales and surplus distribution. To avoid losing rights to funds, act promptly. Ask the county about any deadlines and whether they will escheat or otherwise dispose of unclaimed proceeds after a certain period.

8. When to get an attorney

Consider hiring a Montana attorney if:

• There are competing claimants or lienholders.
• The deceased owner’s estate needs probate or there is a dispute among heirs.
• The county requires a court petition to release funds.
• You want help preparing documents to present to the county or court.

Useful official resources

• Montana Code Annotated (for statutes and to search for tax sale or surplus-related provisions): https://leg.mt.gov/bills/mca/
• Montana Department of Revenue (property tax information): https://mtrevenue.gov/
• Montana Judicial Branch — self-help and probate information: https://courts.mt.gov/selfhelp
• Your county treasurer’s or county clerk’s website — contact information and local forms (search your county name + “treasurer” or “tax sale”).

Because local practice varies, county officials are often the fastest source of precise instructions and forms.

Helpful Hints

• Contact the county where the property sat first — county treasurer or clerk — and ask for a copy of the sale accounting and any surplus claim form.
• If your mother is deceased, obtain a certified death certificate early — counties will almost always require it.
• If the estate appears to be required, open probate or use a small estate affidavit as allowed by Montana law — the county will tell you which it accepts.
• Gather proof of your relationship to the decedent now (birth certificates, marriage certificates, wills) to speed processing.
• Beware of third‑party “overage recovery” companies that charge high fees; many counties allow owners or heirs to claim without paying a finder.
• Ask whether the county will require the claimant to sign an affidavit under penalty of perjury, and be ready to provide truthful, documented statements.
• If multiple creditors or lienholders exist, distribution of surplus may be contested—consult an attorney if there is a dispute.
• Keep copies of every document you submit and get receipts for in-person filings.