Claiming Surplus Funds After a Tax-Forfeiture Sale in Minnesota: What to Do

Disclaimer: I am not a lawyer. This article is educational only and is not legal advice. If you need legal advice about a specific situation, consult a licensed Minnesota attorney.

Short answer

If a county sold your mother’s home because of unpaid property taxes and the sale produced money remaining after taxes, fees, and liens were paid, those leftover funds (“surplus proceeds”) may belong to your mother, her estate, or other people with legal claims. In Minnesota you should (1) confirm whether surplus exists with the county treasurer or county land records, (2) gather proof of your or your mother’s legal interest, and (3) submit a written claim to the county or, if necessary, ask the district court to order distribution. Act quickly — there are administrative and legal deadlines and paperwork required.

Detailed answer — step by step

1. Understand the legal framework

In Minnesota, counties handle tax-forfeited land and the sale of that land under Minnesota Statutes Chapter 282. That chapter sets out the procedures for forfeiture, sale, and distribution of proceeds. Unclaimed funds may also fall under Minnesota’s unclaimed property rules in Chapter 345. See the statutes here: Minn. Stat. Ch. 282 (Forfeiture of Land for Taxes) and Minn. Stat. Ch. 345 (Unclaimed Property).

2. Confirm whether surplus funds exist

Contact the county treasurer’s office where the property sits. Ask whether a tax forfeiture sale occurred, and whether the county shows any surplus proceeds from that sale.
Search the county’s online records or property portal for a tax-forfeiture sale report, certificate of sale, or settlement statement. Many counties publish tax forfeiture lists and sale outcomes online.

3. Determine who has a legal claim to the surplus

Possible claimants include:

The former owner (your mother) — usually the primary claimant if she still owns title or had the homestead.
If your mother is deceased: her estate (executor, personal representative) or heirs who inherit the property interest under her will or Minnesota intestacy law.
Other secured creditors or lienholders (mortgage holders, recorded judgment creditors) who had liens on the property at the time of forfeiture.

4. Gather documents you’ll need

Typical required documents include:

Photo ID for the claimant.
Proof of your relationship or authority: power of attorney, letters testamentary or letters of administration (if you are the personal representative), will, or affidavit of heirship.
Death certificate if your mother is deceased.
Deeds, title documents, mortgage statements, or tax records showing the mother’s ownership or the lien that supports your claim.
Any county notice or settlement statement showing the surplus amount (if available).

5. File a claim with the county

Procedure varies by county, but generally:

Submit a written claim to the county treasurer or county attorney’s office. Include identity documents and proof of interest.
If the county has a standard claim form, use it. If not, provide a cover letter explaining your legal basis and attach supporting documents.
The county will review and either pay the claimant, request additional proof, or deny the claim.

6. If the county denies your claim, consider court action

If the county refuses to pay or disputes the claimant list, you can ask the district court to determine rightful ownership of the surplus and order distribution. This typically involves filing a civil action and presenting evidence of your claim (estate documents, liens, identity). Because court procedures and deadlines vary, consulting a lawyer is often helpful.

7. Special notes if your mother is deceased

If the property was owned solely by your mother at forfeiture, the estate (person appointed by the probate court) usually must claim the surplus. The county may require letters testamentary/administration before paying anyone.
If no probate was opened and the amount is modest, some counties accept an affidavit of heirship or small-estate affidavit. Check with the county for its rules.

8. Watch for deadlines and unclaimed property rules

There can be time limits for administrative claims or the county may eventually turn unclaimed funds over under Minnesota’s unclaimed property process. Act promptly — even if you do not know exact deadlines, begin the claim process as soon as you discover the sale.

Typical hypothetical example

Hypothetical: The county sold a house for $120,000 to satisfy $70,000 in taxes, penalties, and lien payments. After paying those obligations, $25,000 remained (the surplus). The county holds that $25,000. If your mother still owns the property (alive), she — or someone with legal authority to act for her — should present proof and claim the $25,000. If she died before you claim, the personal representative for her estate must present probate documents to the county before the county will release the funds. If the county refuses, the personal representative can ask a Minnesota district court to direct the county to distribute the surplus.

Helpful hints

Start at the county treasurer’s office. They maintain the sale records and will tell you whether surplus exists and what paperwork the county requires.
Bring original or certified documents when possible. Counties often require certified copies of probate documents and death certificates.
If your mother is alive but incapacitated, provide a durable power of attorney or guardianship order showing your authority.
Ask the county whether they have a standard surplus-claim form and what mailing or in-person procedures they prefer.
Beware of third-party companies offering to find and claim surplus funds for a high fee. Many counties allow owners/estate representatives to claim without paying a finder.
If the county denies your claim or questions your authority, consult a Minnesota probate or real estate attorney quickly. Disputes sometimes require district court resolution.
Keep copies of everything you send and get written receipts for submitted documents.

Where to get help

Contact the county treasurer or county attorney for the county where the property is located. If you need legal advice about how to proceed in court or how to obtain probate documents, consult a Minnesota attorney or the Minnesota State Bar Association referral service. For possible unclaimed property questions, review Minnesota’s Unclaimed Property information at the Revisor: Minn. Stat. Ch. 345.

Remember: each county can have different administrative practices even though the statutory framework is statewide. Start locally and move to court only if necessary.