Detailed answer — how the process works under Wisconsin law

When a property is sold and the sale produces money in excess of liens, mortgages, taxes, and sale costs, that excess (the “surplus proceeds”) belongs to the property owner. If the owner dies without a valid will (intestate), those funds are treated like other personal property of the estate and pass according to Wisconsin’s intestate succession rules.

1. Who gets the surplus?

Order of priority matters. Wisconsin law directs distribution of intestate estates in a specific order: surviving spouse, descendants (children and their descendants), parents, and then siblings (and the descendants of any predeceased siblings). If the decedent has no spouse, no children, and no living parents, the siblings are next in line and will generally split the surplus equally.

Example 1 (simple): Decedent dies leaving two living siblings only. The surplus proceeds are estate property and each sibling would typically receive 50% of the surplus after estate expenses and any valid claims are paid.

Example 2 (with predeceased sibling): Decedent’s brother predeceased him but left two children. The living siblings and the two nieces/nephews would divide according to representation: the predeceased brother’s share is taken by his children (they step into his share).

2. Who must claim and how are funds distributed?

Surplus funds are often held by a sheriff, a court, a mortgage holder, or the county until a lawful claimant obtains them. To access those funds on behalf of the estate, someone typically must take one of these routes:

• Open a probate estate and have the court appoint a personal representative (executor/administrator). The personal representative collects estate assets — including surplus proceeds — pays valid debts and expenses, and distributes the remainder to heirs under intestate law.
• Use a summary or small‑estate procedure if the estate qualifies for simplified handling under Wisconsin law (and the surplus is within any statutory thresholds). These procedures are faster and less formal but have eligibility rules.
• If county or court rules allow, submit a claim directly to the entity holding the surplus with documented proof of death and heirship (death certificate, letters testamentary/administration or small estate affidavit, and identity documents). Many counties require a court document showing the person claiming is authorized to receive estate funds.

3. Practical steps and issues to expect

Common practical steps and hurdles include:

• Identifying the entity holding the surplus (sheriff’s office, register in probate, or court clerk).
• Proving the decedent’s death and the claimant’s status as an heir (death certificate, birth records showing family relationships, sworn statements).
• Opening probate or obtaining court documents (letters of administration) when required. Many public offices will not disburse funds without court authorization.
• Resolving competing claims if multiple people claim the same funds (the court may require personal representative appointment and distribution through the probate process).

4. Time limits and contested claims

Time limits to claim surplus funds vary with the type of sale and local procedures; you should act promptly. If heirs or other creditors contest who is entitled to the surplus, the dispute normally goes to probate or civil court and must be resolved before distribution.

5. Statutes and official resources

Wisconsin’s intestate succession rules are set out in the Wisconsin Statutes; you can review the intestate succession chapter online for the precise statutory order of distribution and representation rules: Wis. Stat. ch. 852 — Intestate Succession. For forms, procedures, and information about opening probate or using small estate procedures, the Wisconsin Courts provide resources and forms here: Wisconsin Courts — Probate Forms & Resources.

Note: The exact distribution can turn on details: whether a spouse, descendants, or parents survive the decedent; whether any sibling predeceased leaving children; and whether the estate is administered formally or via a summary procedure. Local county rules also affect claim timing and documentation required to collect surplus funds.

Helpful hints

• Act quickly: Contact the county sheriff, register in probate, or the entity holding the surplus as soon as you learn of the decedent’s death.
• Gather documents: death certificate, proof of your relationship (birth certificates, family tree), any title documents, and lien or mortgage information.
• Check whether the estate qualifies for simplified or small‑estate procedures to avoid a full probate administration.
• If siblings disagree, avoid unilateral withdrawals. A court‑supervised process prevents later claims and disputes.
• Keep records of all communications and documents you submit when making a claim for surplus funds.
• If the surplus is substantial or heirs disagree, consult a probate attorney familiar with Wisconsin intestate succession and county surplus procedures.