What Executors and Administrators Need to Know About Surplus Funds
- Hazel Karen Nicolas Gonzales
- May 27
- 3 min read
If you’re serving as the executor or administrator of a deceased person’s estate, your role involves much more than just organizing paperwork—you’re legally responsible for identifying, protecting, and distributing assets. But one asset is often overlooked: surplus funds from a foreclosure or tax sale.
Whether the property was sold before or after the decedent passed away, surplus funds may still be available—and as the estate’s legal representative, you may be the only one authorized to claim them.
Here’s what you need to know.
What Are Surplus Funds?
Surplus funds—also called excess proceeds or overages—are the remaining money from a foreclosure or tax sale after all debts and liens have been paid.
For example:
A home is sold at a tax sale for $150,000
Back taxes and penalties total $80,000
The $70,000 difference is surplus and belongs to the estate or its rightful heirs
These funds do not automatically go to the state. But if no one claims them, they can be escheated (turned over) after a certain period.
Can Executors and Administrators Claim Surplus Funds?
Yes. In most states, only the court-appointed personal representative—the executor (if there’s a will) or administrator (if there isn’t)—has the legal authority to:
Access estate assets
File a claim for surplus funds
Sign documents on behalf of the estate
If the estate is in probate, you will likely need Letters of Testamentary or Letters of Administration to begin the claim process.
Steps to Claim Surplus Funds as a Personal Representative
1. Identify the Surplus
Check with the county treasurer, court, or foreclosure trustee to see if surplus funds were generated from the sale. You may also consult a professional like Surplus Refund LLC to help locate unclaimed funds.
2. Verify Legal Standing
You’ll need to prove your role as executor/administrator by submitting:
Death certificate
Letters of testamentary or administration
Probate case details (if applicable)
3. Submit a Formal Claim
This includes filling out the appropriate claim form and attaching:
Proof of the foreclosure/tax sale
Proof that the estate is entitled to the funds
Court documents verifying your authority
Depending on the county or state, the process may be handled through the surplus funds department, the probate court, or the treasurer’s office.
Deadlines Matter
Many jurisdictions have strict deadlines—ranging from 6 months to 3 years—to claim surplus funds before they are permanently transferred to the state. As executor or administrator, it’s your duty to act promptly and protect the estate’s interests.
Common Pitfalls to Avoid
Waiting too long to open probate
Failing to notify other heirs (which could lead to legal challenges)
Submitting incomplete paperwork
Overlooking surplus funds entirely (especially if the property was sold before you were appointed)
How Surplus Refund LLC Can Help Executors and Administrators
At Surplus Refund LLC, we work directly with estate representatives to help:
Research and verify the existence of surplus funds
Prepare and file claims accurately and efficiently
Navigate probate requirements and deadlines
Maximize recovery with no upfront cost
We understand that you’re already juggling important responsibilities. Let us assist with this complex but valuable part of the estate process.
Conclusion
If you’re managing the affairs of a deceased loved one, don’t overlook the potential value of surplus funds. As executor or administrator, you have the legal authority—and responsibility—to claim them on behalf of the estate.
Need help confirming if surplus funds are available or filing a claim?
Contact Surplus Refund LLC today for a free consultation and personalized support. We’ll help you recover what’s rightfully owed to your loved one’s estate.
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