Washington: Who Receives Surplus Proceeds When an Owner Dies Without a Will and Siblings Are Involved | Washington Probate | FastCounsel
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Washington: Who Receives Surplus Proceeds When an Owner Dies Without a Will and Siblings Are Involved

August 14, 2025 6 min read

What happens to surplus foreclosure proceeds when a property owner dies without a will and siblings are involved?

Short answer: In Washington, any surplus money remaining after a foreclosure sale becomes an asset of the decedent’s estate. That money is distributed according to Washington’s intestacy rules (if there is no will). If the decedent left no surviving spouse, no children (descendants), and no surviving parents, siblings (or their descendants) can inherit. The estate’s personal representative (or an heir if no probate is opened) must claim and distribute the surplus. See Washington’s intestacy rules: RCW 11.04, and the deeds-of-trust/foreclosure statutes: RCW 61.24.

Detailed answer — step by step

This answer assumes a typical scenario: a property secured by a deed of trust or mortgage is sold in a nonjudicial or judicial foreclosure, the sale pays off the debt and costs, and sale proceeds exceed the outstanding obligations (a surplus). The owner died without a will (intestate). Here is how Washington law generally handles the surplus.

1. Surplus becomes part of the decedent’s estate

When a foreclosure sale produces surplus proceeds, those funds do not automatically go to the person who signed the deed of trust or to the lender. Instead, the surplus is treated as the former owner’s money and becomes an asset of that person’s estate. The trustee or sheriff handling the sale will normally hold the surplus for the lawful claimant (often by paying it into court or following statutory procedures).

2. Estate administration or claim by heirs

Because the surplus is an estate asset, it must be paid to the decedent’s legally recognized heirs or to the personal representative appointed by a probate court. If someone opens probate and becomes the personal representative, that representative has the authority to collect the surplus and distribute it under Washington probate rules after paying valid debts and costs.

3. Washington intestacy rules determine who inherits

If the decedent left no will, Washington law sets the order of who inherits. The key rules (chaptered at RCW 11.04) to remember are:

  • If there is a surviving spouse and no children or other descendants, the spouse generally inherits all.
  • If there is a surviving spouse and children (descendants), distribution depends on whether the children are also the spouse’s descendants.
  • If there is no spouse and no descendants, but one or both parents survive, the parents inherit.
  • If there is no spouse, no descendants, and no surviving parents, the decedent’s siblings (and the siblings’ descendants) inherit.

So, siblings are entitled to inherit surplus proceeds only if they are next in line under the intestacy rules (for example, when the decedent left no spouse, no children, and no surviving parents).

4. Creditors and priority of payment

Before heirs receive distributions, the estate must pay valid claims and costs (administration expenses, funeral expenses, taxes, bona fide creditor claims). If creditors have valid claims against the decedent, the personal representative must satisfy those claims from estate assets, which can include surplus proceeds.

5. Practical timelines and claims for surplus

The trustee, sheriff, or foreclosure agent will follow statutory procedures for dealing with surplus proceeds. That process can include holding funds, filing with court, or paying to a known claimant. Heirs or a personal representative should act promptly:

  • Provide a certified copy of the death certificate.
  • Provide evidence of heirship (family tree, birth certificates, or a copy of the probate court order appointing a personal representative).
  • File required claims or petitions in the court where the foreclosure or probate matter is administered.

6. If no probate is opened

In some small cases, heirs can recover assets without full probate by using statutory small‑estate procedures or by presenting their claim to the trustee/foreclosure agent with adequate documentation. If Washington’s small estate rules apply, that may be faster—but ensure you meet the statutory prerequisites for small estate procedures before relying on them.

What to do if you are a sibling who believes you are entitled to surplus proceeds

  1. Obtain a certified death certificate for the decedent.
  2. Gather proof of your relationship to the decedent (birth certificates, parents’ records, or other documents showing sibling relationship).
  3. Contact the trustee or entity holding the surplus to ask what documentation they require and whether they have already paid the money into court.
  4. If someone has opened probate, contact the personal representative and review court filings to see whether the surplus has been identified as an estate asset.
  5. If no probate has been opened and the amount is significant, consider opening a probate estate so a personal representative can collect and distribute the funds lawfully.
  6. If the trustees or sale agents refuse to release funds, or heirs dispute who is entitled, consider consulting an attorney to file a claim or motion in probate or superior court to resolve entitlement.

Helpful hints

  • Start by locating the foreclosure sale paperwork and any trustee or sheriff notices. Those documents often identify whether a surplus exists and who is holding it.
  • Keep copies of vital records: death certificate, birth certificates, and any documents showing family relationships. These are commonly required to prove heirship.
  • If the surplus is small, Washington’s simplified or small‑estate options may allow quicker recovery without full probate—check local court rules or ask a probate clerk what forms are available.
  • Do not accept informal promises to distribute funds. Get any agreement in writing, and ensure distributions follow the probate court order (if probate is open).
  • Be mindful of deadlines. Some foreclosure statutes and court procedures set time limits to claim surplus funds or to object to distributions.
  • When multiple siblings are involved, open communication and documented agreements reduce the risk of litigation. If siblings disagree, the probate court can decide the proper distribution under RCW 11.04.
  • Because creditors can make claims against the estate, do not assume you will receive the full surplus amount until estate liabilities are resolved.

Where to find the law

Major Washington statutes that govern intestate succession and foreclosure procedures include:

  • Intestate succession (who inherits when there is no will): RCW Chapter 11.04.
  • Deeds of trust and foreclosure procedures (how surplus funds are handled after sale): RCW Chapter 61.24.

When to talk with an attorney

You should consider consulting a Washington probate or real‑property attorney if:

  • Multiple people claim entitlement to the surplus and cannot agree.
  • The trustee or foreclosing party refuses to release the funds to the estate or heirs.
  • There are creditor claims, tax issues, or other complications affecting distribution.
  • The amount of surplus is large relative to the cost and complexity of opening probate.

Disclaimer: This article is for general informational purposes only and is not legal advice. It does not create an attorney‑client relationship. Laws change and every situation is different. If you need advice about a particular matter, contact a licensed attorney in Washington.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.