Detailed Answer
When a decedent’s real property in Delaware sells, the proceeds pass through the estate’s probate or small-estate process. Which forms an heir must sign depends on whether the estate qualifies as a small estate or requires formal administration.
1. Small Estate Affidavit (12 Del. C. § 1912)
If the entire estate—personal property plus net sale proceeds—is valued at $30,000 or less, an heir may use a Small Estate Affidavit. Under 12 Del. C. § 1912, this sworn statement lists heirship facts, identifies the decedent’s assets, and states the value. Once recorded with the Recorder of Deeds, the heir signs the affidavit to claim the proceeds without opening a full probate file.
2. Letters of Administration (12 Del. C. § 1910)
When the estate exceeds the small-estate limit, someone (usually an heir) petitions the Register of Wills for Letters of Administration under 12 Del. C. § 1910. After appointment, the personal representative must sign and file:
- Letters of Administration (court order appointing the representative).
- Bond or Waiver, if required by the court.
3. Order for Distribution (12 Del. C. § 1913)
Once final debts and expenses are paid, the personal representative petitions for an Order for Distribution under 12 Del. C. § 1913. The court signs this order, directing how proceeds divide among heirs. A certified copy goes to the Register for disbursement.
4. Receipt and Release (Probate Division Form)
Before releasing funds, the title company or estate administration office typically requires each heir to sign a “Receipt and Release.” This form acknowledges receipt of the heir’s share and discharges the representative from further claims. Though not codified, courts routinely accept it as a safeguard.
5. Escrow Distribution Authorization
If the sale occurs through a title or escrow company, that entity will furnish an Escrow Distribution Authorization form. All heirs must sign, specifying bank details or addresses for funds. It supplements court documents to instruct the escrow agent on wire transfers or checks.
Helpful Hints
- Confirm estate value early to decide if a small estate affidavit applies.
- Consult the Register of Wills in the county where the decedent lived.
- Obtain certified copies of court orders for the title company.
- Use the Receipt and Release to avoid future disputes.
- Coordinate with all heirs to gather signatures quickly and avoid delays.
- Keep copies of every signed form for your records.
- Consider legal advice for complex estates or disputes.