Title: Who Can Claim Excess Funds After a Loved One Passes Away?

When a family member passes away—especially a parent—the emotional toll is heavy. The grief, the medical bills, the decisions, and often, the overwhelming legal paperwork. If your loved one owned property that was sold at a tax sale in Texas, you may not even realize that the county could owe your family money. That money is called excess proceeds.

And if you’re the rightful heir, you may be legally entitled to claim it.

What Are Excess Proceeds?

When a Texas property is sold at a tax foreclosure auction, the county only takes what it is owed in back taxes, fees, and costs. If the winning bidder pays more than that amount—and they often do—the leftover money doesn’t automatically go to the government. It becomes excess proceeds, held in trust by the county.

That money can and should go to the legal heirs of the deceased property owner.

Who Can Claim It?

Under Texas Tax Code §26.05, if the former owner is deceased, the heirs, legal representatives, or estate beneficiaries are entitled to claim the excess funds. That means:

• The surviving spouse (if not already on title)

• Adult children

• Court-appointed estate executors

• Anyone named in a will or determined by intestate succession (if no will exists)

In plain terms: if you’re the legal next of kin, or the person handling your loved one’s estate, you have standing to recover the funds.

What If There Was No Will?

If your loved one died intestate (without a will), you can still claim excess funds. Texas law provides a path through what's called Affidavit of Heirship, which allows heirs to declare their relationship and legal standing under penalty of perjury.

At NOFA, we help walk families through that process legally, ethically, and efficiently.

Why Haven’t You Been Notified?

Counties do not have an obligation to proactively find or notify heirs. That burden falls on you—which often means that many families never know the money exists. Worse, the funds can eventually revert to the county or state if not claimed in time.

This isn’t a loophole. It’s a quiet failure of the system. But you still have a legal right to act.

What the Law Says (Statute Reference)

Under Texas Tax Code §26.05(e):

"The excess proceeds from a sale of property under this section shall be applied to the payment of the amount of the judgment... and the remainder shall be paid to the person entitled to the excess."

In cases where the original property owner is deceased:

• Heirs may file a claim with supporting documentation

• Probate is not always required

• A legal affidavit or small estate declaration may suffice

Take the First Step

If your parent or loved one’s property was lost to a tax sale, and you were never contacted about possible excess funds, don’t let time or confusion stop you. This money is not a handout—it is rightfully yours.

At the National Overages Finders Alliance (NOFA), we stand with families—not institutions. We help you:

• Verify eligibility

• Navigate affidavits or probate

• File your claim and recover the money you are owed

Business is Service. Let us serve your family with truth, clarity, and dignity.

Contact us today at info@Overages.us or call 866-800-6632 (NOFA).

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This post is for educational purposes only and does not constitute legal advice. Always consult with a qualified professional regarding your specific situation.