Detailed Answer

This section explains, in plain language and using Connecticut sources where applicable, how surplus proceeds from a municipal tax foreclosure sale are handled and what a family member should do to try to recover funds on behalf of a parent.

1. What is a “surplus” after a tax sale?

A tax foreclosure sale is intended to satisfy outstanding municipal property taxes, interest, penalties, and the municipality’s costs. If the sale price exceeds the total of those charges, the excess is called a surplus (sometimes called an “overage” or “excess proceeds”). Connecticut law provides that the surplus belongs to people with a legal interest in the property—typically the former owner or subordinate lienholders—subject to any valid claim by others. For the statutes that govern municipal taxation and tax procedures, see the Connecticut General Statutes, Title 12 (Taxation):
https://www.cga.ct.gov/current/title_12.htm.

2. Who can claim the surplus?

• The recorded owner at the time of the sale (the former homeowner) is the primary claimant.
• Valid recorded lienholders (mortgages, judgment liens) may have priority claims to some or all of the surplus.
• If the owner is deceased, the owner’s estate—through an executor/administrator or an appointed fiduciary—must assert the claim.
• If someone else holds a power of attorney or is a legal guardian, that person may be able to act on the owner’s behalf but must show legal authority (POA document, letters of guardianship, or probate appointment).

3. First practical steps to take

1. Contact the town tax collector’s office and the town clerk where the property is located. Ask for the tax sale file (notice of sale, certificate of sale, sale results and any accounting showing how proceeds were applied).
2. Obtain written documentation of the surplus amount and a statement of the municipality’s disbursement plan for the surplus (some towns hold surplus funds while claims are resolved).
3. Gather proof of your legal right to claim the funds: deed or title showing ownership, photo ID for the claimant, power of attorney (if acting for a live owner), death certificate and letters testamentary or letters of administration (if the owner is deceased), and any mortgage or lien documentation.
4. File a written claim for the surplus with the municipality. Follow any local form or procedures; keep dated copies and proof of delivery (certified mail or in-person receipt).

4. If the owner is deceased — how to proceed

If your mother has passed away, you generally cannot collect surplus funds in your personal name unless you are the estate’s personal representative or you have been legally appointed (e.g., as administrator or executor). Typical steps:

• Open a probate estate (if not already open) in the probate court for the town where your mother lived. The Probate Court issues letters testamentary or letters of administration authorizing the personal representative to act for the estate. See the Connecticut Judicial Branch: https://www.jud.ct.gov/.
• With letters in hand, file a claim with the municipality for the surplus and provide probate documents, the death certificate, and ID.
• If you are a beneficiary but not the personal representative, discuss with beneficiaries and the personal representative about pursuing the claim; if the personal representative refuses, beneficiaries can consult an attorney about compelling action.

5. If the municipality denies or delays the claim

If the town refuses payment or disputes who is entitled to the funds, you can:

1. Ask the town for a written reason for denial and appeal or administrative review if allowed by local policy.
2. Request that the town deposit the surplus into the court’s registry and ask the court to determine ownership, or file a civil action (e.g., a replevin or declaratory judgment action) in Connecticut Superior Court to resolve competing claims.
3. Hire a Connecticut attorney experienced in municipal tax foreclosures or probate to represent the estate or claimant and, if necessary, file the appropriate court action.

6. Evidence you will likely need

• Proof of title: deed or land records copy showing the former owner.
• Photo ID for the claimant and proof of relationship (if claiming for a family member).
• If the owner is deceased: death certificate, probate appointment/letters, and estate paperwork.
• Any existing power of attorney, guardianship, or conservatorship documents if acting for a living owner who cannot act for themself.
• Documentation from the town showing sale proceeds and how funds were applied.

7. Timing and urgency

There is no benefit in waiting. Municipalities may hold surplus funds only for a limited period or may be required to follow statutory procedures to distribute funds; in contested situations, waiting can make court action more difficult. If the owner is deceased, begin the probate process quickly so the estate can legally claim the surplus.

8. Costs and attorney involvement

Claiming an uncontested surplus is often low-cost (town paperwork and document copies). If multiple claimants contest entitlement or the town refuses, legal fees and court costs can grow. An attorney can handle title/lien checks, prepare paperwork, and, if necessary, bring a claim in Superior Court on behalf of the estate or claimant.

9. Where to look for official rules and statutes

Connecticut’s statutes governing taxation and municipal procedures are in the Connecticut General Statutes. For an overview of the statutes that govern municipal taxation, tax collections, and related procedures, see:

• Connecticut General Assembly — Title 12 (Taxation): https://www.cga.ct.gov/current/title_12.htm

If your situation intersects probate, consult the Connecticut Judicial Branch for probate procedures: https://www.jud.ct.gov/.

10. Example (hypothetical)

Hypothetical: A Connecticut town sold a house for $200,000 to satisfy $120,000 in municipal taxes and costs, leaving a $80,000 surplus. The title still listed the homeowner (your mother). You should (1) get the town’s sale accounting; (2) show your mother’s ownership documents to the tax collector; (3) if your mother is alive, have her sign an authorization or claim form (or present POA); (4) if deceased, obtain probate letters and submit them with a written claim. If the town refuses, a lawyer can ask a court to order distribution of the $80,000 to the rightful parties.

Helpful Hints

• Act quickly. Contact the town tax collector and town clerk as soon as you learn of a tax sale or surplus.
• Don’t accept verbal promises; get decisions and documentation in writing from the town.
• If your parent is alive but incapacitated, determine whether a valid power of attorney exists and whether it authorizes financial actions; present it to the town.
• If your parent is deceased, open probate promptly so the estate can claim the funds lawfully.
• Keep careful copies of every document you submit and every correspondence with municipal staff—dates and receipts matter if you must go to court.
• Before paying any third party “finder” or claims buyer, consult an attorney. Some companies purchase surplus claims at a steep discount and may not protect your long-term interests.
• Ask the town whether they provide a standard claim form or require a court order. Procedures can differ from town to town.
• If you suspect fraud or errors in the tax sale process, preserve records and consult an attorney immediately—statute-based defenses and equitable claims may apply.