Detailed Answer

When a property owner dies without a will, any surplus money left over from a forced sale (such as a foreclosure or tax sale) usually becomes part of the decedent’s estate. The estate must be administered and the surplus distributed according to Alabama’s rules of intestate succession.

Which claims are paid first?

Sale proceeds are first applied to the costs of the sale, valid liens (mortgages, tax liens), and fees. Any remaining amount — the surplus — is treated as money belonging to the decedent and must be paid to whoever is entitled under the probate process.

Who inherits if there is no will?

Alabama law gives priority to certain family members. Generally the order is: (1) surviving spouse and descendants; (2) if there is no surviving spouse or descendants, parents; (3) if no parents, then siblings (or the descendants of a predeceased sibling). If siblings are the heirs, they usually share the estate equally unless the statute or facts dictate distribution by right of representation (children of a predeceased sibling inherit that sibling’s share). The detailed statutory rules are found in Alabama’s intestate succession provisions. For a statutory reference see the Alabama Code on descent and distribution at the Alabama Legislature website: https://www.legislature.state.al.us/.

How the surplus actually gets to siblings

1. Identification: Someone (often a creditor, purchaser, sheriff, or the court clerk) holds the surplus or reports it to the probate court or clerk.
2. Probate/Administration: A personal representative (also called an administrator) may be appointed by the probate court to open administration of the estate. The administrator collects estate assets (including surplus proceeds) and pays valid claims.
3. Determination of heirs: The probate court determines the rightful heirs under Alabama’s intestacy rules. If siblings are the lawful heirs, the administrator pays them their shares from the estate funds.
4. Direct claim: In some circumstances a potential heir (a sibling) can file a claim with the court or with the office holding the funds to request payment. The heir must establish their relationship to the decedent (birth certificates, family records, sworn affidavits, or testimony) and that no one with higher priority (spouse, children, parents) is entitled to the funds.

Disputes among siblings

If siblings disagree (about who is an heir, how to split the funds, or whether someone else has priority), the probate court resolves the dispute. Common issues include disputed paternity, adopted or half-siblings, and children of a predeceased sibling claiming by right of representation. If heirs cannot resolve matters informally, a judicial determination will be required.

Timing and practical considerations

The court process can take weeks or months depending on whether the estate is complex, whether creditors file claims, and whether heirs dispute distribution. In some situations (for example, small estates or where the surplus is modest) simplified procedures may be available. Contacting the local probate court is the fastest way to learn the exact steps and filing requirements for the county where the decedent lived.

Where to find Alabama law and local rules

Alabama’s statutory provisions on wills, administration, and intestate succession are available through the Alabama Legislature website (see the site above). For probate forms and county-specific rules, use the Alabama Administrative Office of Courts: https://www.alacourt.gov/.

Helpful steps for siblings who think they are entitled to surplus proceeds

• Get a certified copy of the decedent’s death certificate early. The office holding the surplus will ask for proof of death.
• Contact the county probate court where the decedent lived to ask whether an estate has been opened or whether surplus funds are being held. Probate court clerks can explain filing steps.
• Gather proof of your relationship to the decedent (birth certificates, parents’ marriage certificate, family records, or affidavits). If a sibling predeceased the decedent, gather documents showing that sibling’s children (for representation claims).
• If no administrator has been appointed, consider filing for appointment as administrator if you intend to collect and distribute estate assets. Courts often favor an heir willing to administer when no one else has taken action.
• If the surplus came from a foreclosure or tax sale, ask the sheriff, sale officer, or clerk which office holds the funds and what the claim procedures are. There may be a time window to make a claim.
• If siblings disagree, try mediation or a family meeting before court. If that fails, file the proper petition in probate court asking the court to determine heirs and direct distribution.
• Keep records of all communications, receipts, and filings. These protect you if disputes arise later.

When to talk to an attorney

If the surplus is large, if heirs dispute entitlement, or if the facts about family relationships are unclear (adoptions, half-siblings, out-of-state heirs), speak with an Alabama probate attorney. An attorney can help you file for administration, prepare heirship proofs, and represent you if the matter goes to court.