Detailed answer — what the surplus is and who can claim it

When a property is sold at a tax foreclosure or tax deed sale, the sale proceeds first pay the taxes, interest, penalties, and costs. Any remaining money is called the surplus (or excess proceeds). Under Wisconsin law, those surplus funds are typically distributed to persons with a legal right to them — usually the former property owner, heirs of the owner if the owner is deceased, or certain lienholders in priority order.

The general statutory rules about delinquent real estate taxes and tax sales are found in Wisconsin Statute chapter 75. For an overview of the law governing collection and distribution of funds from tax foreclosures and sales, see Wis. Stat. ch. 75: https://docs.legis.wisconsin.gov/statutes/statutes/75

Typical priority

• Former owner(s) and their heirs or personal representative: often have the primary claim to any surplus after the county and lienholders are paid.
• Mortgagees or other lienholders: may have claims that can reduce or eliminate a surplus depending on lien priority and whether they redeemed before sale.
• County or municipality: receives amounts due for taxes, fees, and sale costs first.

If the former owner is deceased

If the property owner has died, the person entitled to claim the surplus is usually whoever holds legal authority over the decedent’s estate (personal representative/executor) or the heirs under state succession rules. You will generally need to show documents proving your right to act on behalf of the estate (letters testamentary or administration) or a court-issued order appointing an administrator. If there was no probate opened, some counties accept heirship affidavits plus death certificate and photo ID — but procedures vary by county.

Step-by-step practical process to locate and claim surplus funds in Wisconsin

1. Identify the sale and whether a surplus exists.

   Start with the county where the property was located. Contact the county treasurer, county clerk, or sheriff’s office and ask for the tax foreclosure sale records for the property. Ask for the final accounting showing sale price, amounts applied to taxes and costs, and any surplus amount.

2. Get a written accounting and confirmation of surplus.

   Request a written statement or certified accounting of sale proceeds and any recorded notices of distribution. That document is the key evidence you’ll use to make a claim.

3. Determine who has legal priority to claim.

   Review the accounting and any recorded liens. If you (as a child or heir) want to claim the surplus on behalf of your mother, you will need to show you are legally entitled — usually via probate letters, a court order, or an affidavit of heirship acceptable to the county.

4. Gather required documents.

   Common items counties request include:

   • Government-issued photo ID for the person claiming funds;
   • Death certificate if the owner died;
   • Letters testamentary or letters of administration if an estate was opened;
   • Affidavit of heirship, if accepted by the county;
   • Documentation showing the claimant’s relationship to the decedent (e.g., birth certificate) if needed;
   • Copy of the recorded tax deed or sale paperwork and the surplus accounting from the county.
5. File the claim where required.

   Counties may have internal forms and procedures; some distribute surplus funds administratively through the treasurer’s office, while others require filing a claim/petition in the county circuit court to obtain an order directing payment. If the county asks you to file in circuit court, follow the court’s procedures and submit the supporting documents with your petition.

6. If multiple claimants exist or disputes arise, prepare for court resolution.

   When there are competing claims (for example, a mortgage holder claims surplus, or multiple heirs contest distribution), the circuit court may hold a hearing and enter orders distributing the funds. You may need an attorney for contested matters.

7. Collect the funds and close the matter.

   Once the county or court approves distribution, the funds are usually paid by check from the county. Make sure to obtain a written receipt and keep copies of all paperwork for the estate or family records.

Example (hypothetical)

Hypothetical: Your mother owned a house in Wisconsin. She passed away without transferring the title. The county sold the property at a tax foreclosure sale and the sale brought in $60,000. The taxes, penalties, and sale costs totaled $20,000 and a mortgage holder who failed to cure the tax delinquency had a lien that was extinguished by the sale. That leaves a $40,000 surplus.

Steps you would take: (1) contact the county treasurer and request the sale accounting; (2) provide your mother’s death certificate and either probate letters naming you personal representative or an affidavit of heirship accepted by the county; (3) file whatever claim form or court petition the county requires; (4) if no one disputes your claim, the county issues a check to you (or to the estate) for the approved amount.

Practical tips and timing

• Act promptly. County procedures and potential statute-based deadlines can limit how long you have to claim funds or to open an action to recover them.
• Contact the county treasurer first. That office usually controls records and can tell you whether a surplus exists and what claim steps the county follows.
• If the owner is deceased, start or locate any probate file early. Courts and counties often require probate letters or a court order before releasing money to an heir or representative.
• If multiple parties claim the money or if large sums are involved, consider consulting a Wisconsin attorney experienced in probate or tax foreclosure matters.

Where to find the law and local rules

Wisconsin’s statutory framework for delinquent taxes and tax sales is in chapter 75. See: https://docs.legis.wisconsin.gov/statutes/statutes/75

County treasurer and circuit court websites often publish forms and local instructions for claiming surplus funds. If the county’s procedure is unclear, ask the county clerk or the clerk of circuit court which office handles surplus claims.

When to get legal help

• You can’t prove your legal relationship to the deceased owner (no probate opened).
• Another party contests your claim to the surplus.
• The amount is large and the distribution is complicated by priority disputes among lienholders.
• You need help preparing court papers or representing the estate in court.