Key Authorization Forms for Heirs Directing Distribution of Real Property Sale Proceeds in Wisconsin

Detailed Answer

When a decedent’s real property sells in Wisconsin, the personal representative (executor or administrator) controls the proceeds until final distribution. Heirs who wish to direct or expedite distribution must sign specific authorization forms. Below are the primary documents used under Wisconsin law:

1. Waiver of Account and Assent (Wis. Stat. § 867.11)

Under Wis. Stat. § 867.11, an heir may sign a Waiver of Account and Assent to:

• Waive the requirement for the personal representative’s formal accounting in court.
• Assent to the proposed distribution of sale proceeds.
• Release the personal representative from further liability once distribution occurs.

This form streamlines probate by preventing additional court hearings and motions.

2. Receipt and Release

The Receipt and Release confirms that an heir has received their share of the sale proceeds. Key elements include:

• Identification of the decedent and estate case number.
• Statement of the amount received by the heir.
• Release language protecting the personal representative from future claims related to those funds.

This document often accompanies the final accounting or follows the Waiver of Account and Assent.

3. Small Estate Affidavit (Wis. Stat. §§ 865.201–865.203)

If the total value of personal property (including sale proceeds) does not exceed $50,000 and no administrator was appointed, heirs may use the Small Estate Affidavit under Wis. Stat. § 865.201. This process allows heirs to:

• Collect sale proceeds without formal probate.
• Provide an affidavit listing the decedent’s assets and heirs’ signatures.
• Distribute funds according to the affidavit’s directions.

Courts require filing the affidavit with the register in probate and waiting the statutory period before distribution.

4. Distribution Directive to Closing Agent or Title Company

Heirs sometimes sign a Distribution Directive authorizing the closing agent or title company to disburse sale proceeds directly to them. The directive should include:

• Legal description of the property sold.
• Estate case or file number.
• Names and addresses of each heir and their share percentage.

The personal representative often coordinates this document to ensure compliance with court orders.

Helpful Hints

• Consult the personal representative early to learn which forms the probate court requires.
• Review all documents carefully before signing to confirm your distribution percentage and release language.
• Use certified copies of the Letters Testamentary or Letters of Administration when submitting affidavits or directives.
• If the estate exceeds small estate limits, do not use the Small Estate Affidavit; follow full probate procedures under Chapters 867 and 861.
• Consider discussing complex situations with a probate attorney to avoid future disputes or delays.