Who Is Eligible to Receive Surplus Proceeds in Maine When Property Was Solely in the Deceased Spouse’s Name?
Detailed Answer
When a mortgage or tax foreclosure sale generates surplus proceeds, Maine law directs any leftover funds to the property owner. If the property owner died owning the property in their name alone, those proceeds become part of the decedent’s estate. The personal representative (executor or administrator) must petition the court to claim and distribute the surplus.
1. Surplus Proceeds Under Maine Foreclosure Law
“Surplus proceeds” means the amount remaining after satisfying the foreclosure judgment, costs and junior liens. See 14 M.R.S. §6321(7). The foreclosing party must hold those funds and file a report for surplus distribution under 14 M.R.S. §6323-A.
2. Role of the Estate and Personal Representative
If the recorded owner is deceased, the surplus belongs to the estate. The personal representative must:
- Obtain letters testamentary or letters of administration from the Probate Court.
- File a petition in the Superior Court that handled the foreclosure sale under 14 M.R.S. §6323-A.
- Provide certified copy of the death certificate and proof of appointment.
3. Distribution Under Maine Probate Law
Once the court releases the surplus to the estate, distribution follows the decedent’s estate plan:
- If the decedent left a valid will, the surplus passes to beneficiaries according to the will.
- If intestate (no will), Maine’s Uniform Probate Code governs. Under 18-B M.R.S. §2-102, a surviving spouse inherits the entire estate if there are no descendants. If there are children, the spouse receives a statutory share and children inherit the remainder. See 18-B M.R.S. §2-103.
Helpful Hints
- Gather the decedent’s death certificate and letters of appointment before petitioning for surplus proceeds.
- Review 14 M.R.S. §6323-A to confirm filing deadlines—typically within 90 days after confirmation of sale.
- Check for junior lienholders; they may file competing claims under 14 M.R.S. §6323-B.
- If the decedent left a will, verify beneficiary designations and follow probate procedures in Title 18-B.
- Consult a probate or real estate attorney to navigate court filings and statute requirements.