Background
Christopher Reid died intestate owning a mortgaged condominium. He had no spouse, descendants, or living parents, and was survived by five siblings: Lawrence Reid, Donna Reid, Thomas Reid, Edward Reid, and Margaret Reid Fallon.
During probate, Thomas, Edward, and Margaret executed and filed written, unconditional disclaimers of all interests in the property. After a foreclosure sale generated a surplus, Amerifund Equity Group, as assignee of Thomas’s and Edward’s claimed interests, sought their shares. The circuit court divided the remaining surplus equally among all five siblings, concluding the probate disclaimers did not comply with Florida’s foreclosure-surplus transfer statute.
The Court’s Holding
The Fourth District reversed. It held that the three siblings’ disclaimers complied with Florida’s disclaimer statute, section 739.104, and became irrevocable when properly delivered or filed. Those disclaimers eliminated their rights to inherit an interest in the property.
Section 45.033(3)’s requirements apply to voluntary transfers or assignments, not to inheritance, which is an involuntary transfer under section 45.033(2)(b). Because entitlement to the surplus followed heirship after the record owner died, the valid probate disclaimers barred Thomas, Edward, and Margaret—and Amerifund as assignee—from claiming the surplus. The court remanded with instructions to distribute the remaining surplus solely to Lawrence and Donna.
Key Takeaways
- A valid, irrevocable probate disclaimer can eliminate a sibling’s derivative right to foreclosure-surplus proceeds.
- Inheritance is an involuntary transfer for purposes of Florida’s foreclosure-surplus statute.
- Section 45.033(3) does not invalidate a valid Chapter 739 disclaimer merely because it was not a voluntary-transfer instrument.
Why It Matters
The decision confirms that courts determining foreclosure-surplus entitlement after an owner’s death must apply Florida inheritance and disclaimer law. A potential heir cannot disclaim a property interest and later claim a windfall from the property’s foreclosure sale.