Background
Christopher Reid died intestate owning a mortgaged condominium. He had no spouse, parents, or descendants and was survived by five siblings, including appellant Lawrence T. Reid, Jr.
Three siblings executed, witnessed, acknowledged, and filed probate disclaimers irrevocably renouncing all interests in the property. After U.S. Bank foreclosed, the sale produced a surplus. Amerifund Equity Group, as assignee of two disclaiming siblings’ claimed interests, sought their shares. The circuit court ruled the disclaimers did not comply with the foreclosure-surplus statute and divided the surplus among all five siblings.
The Court’s Holding
The Fourth District reversed. The siblings’ disclaimers complied with Florida’s disclaimer statute, section 739.104, and became irrevocable when properly delivered and filed.
Inheritance is an involuntary transfer under section 45.033(2), not a voluntary transfer or assignment governed by section 45.033(3). Nothing in the foreclosure-surplus statutes displaced the valid probate disclaimers. By disclaiming their interests in the property, the three siblings lost any derivative right to its foreclosure proceeds.
Key Takeaways
- A valid, irrevocable probate disclaimer can eliminate an heir’s claim to foreclosure-surplus proceeds.
- Section 45.033(3)’s requirements apply to voluntary transfers or assignments, not transfers by inheritance.
- The surplus must be redistributed solely to Lawrence Reid and Donna Reid, the two non-disclaiming heirs.
Why It Matters
The decision confirms that foreclosure-surplus proceedings must account for state inheritance and disclaimer law when the record owner has died. An heir cannot disclaim property to avoid potential foreclosure liability and later claim an unexpected surplus from its sale.