Short answer

If the house is sold after your father’s death by the personal representative (executor/administrator) and the sale proceeds become part of your father’s probate estate, any money left after paying mortgages, liens, administration costs, and valid creditor claims is distributed according to your father’s will. However, if the property passed outside probate (for example, by joint tenancy with right of survivorship or tenancy by the entirety, beneficiary deed, or other non‑probate transfer), the proceeds (or the right to proceeds) may bypass the will and go to the non‑probate owner. Maryland also protects certain family rights (homestead allowance, family allowance, and creditors’ priorities) that can affect distribution.

Detailed answer — how Maryland law treats a home sale and leftover funds

1. Who sells the house and when matters

If a parent sells the home while both parents are alive, the sale proceeds are theirs to control and distribute by contract, deed, or estate planning documents. If the house is sold after one parent dies, who sells it determines where the money goes:

• If the surviving spouse (or a joint owner) owned the home by joint tenancy with right of survivorship or tenancy by the entirety, ownership usually passes automatically to the survivor and the funds do not become part of the decedent’s probate estate to be distributed under the will.
• If the house is sold by the decedent’s personal representative after probate opens because the house is part of the probate estate, the sale proceeds are estate assets and are used first to pay estate administration costs, secured debts (like mortgages), funeral expenses, and valid creditor claims. Any remainder is distributed under the will to the beneficiaries named there.
• If the home transferred by a beneficiary deed, transfer-on-death deed, or other nonprobate mechanism, it will pass to the named beneficiary outside probate and generally will not be controlled by the will.

2. Order of payments before distributions

Maryland probate practice requires that the estate’s assets, including cash from a sale that becomes part of probate, pay the estate’s obligations before distribution to beneficiaries. Typical priorities include:

• funeral and last illness expenses;
• administration costs (executor fees, attorney fees, court costs);
• secured debts (mortgages, tax liens) that attach to the property;
• valid unsecured creditor claims presented and allowed in the probate process.

Only after these are paid can the personal representative distribute remaining funds according to the will.

3. Surviving spouse and family protections that can change the outcome

Maryland provides several protections that can affect how much goes to will beneficiaries:

• Homestead allowance — a statutory allowance that can protect a modest amount of the decedent’s home or its cash equivalent for the surviving spouse or minor children.
• Family allowance — a short‑term allowance to support the surviving spouse and minor children during estate administration.
• Elective share / augmented estate principles — Maryland law gives a surviving spouse statutory rights that may let the spouse claim a share of the estate instead of taking under the will in some circumstances.

These claims can reduce the amount available to other beneficiaries named in the will. For more info on probate procedures and family allowances in Maryland, see the Maryland Courts probate pages: https://www.mdcourts.gov/probate and the personal representative information at https://www.mdcourts.gov/probate/personalrepresentative.

4. Examples (hypotheticals)

Example A — House is a probate asset: Dad dies owning the house in his sole name. The executor sells it for $300,000, pays a $150,000 mortgage, $20,000 in administration costs and allowed creditor claims of $10,000. The remaining $120,000 is estate cash. If the will leaves the estate to the children, the executor distributes that $120,000 per the will (after any family/homestead allowance claims are resolved).

Example B — House passes outside probate: Dad and Mom held the house as joint tenants with right of survivorship. When Dad dies, Mom automatically becomes sole owner. If Mom later sells the house, the sale proceeds belong to Mom and are not distributed under Dad’s will.

5. Practical steps to confirm where leftover money should go

1. Check the deed and title history: is the house titled in Dad’s sole name, jointly, or as tenants by the entirety?
2. Ask whether a beneficiary deed or transfer-on-death designation exists.
3. Confirm whether someone opened probate and who the personal representative is.
4. Ask the personal representative for an inventory of estate assets and accounting for sale proceeds and payments to creditors.
5. Check whether the surviving spouse has filed for homestead or family allowances or an elective share claim.

6. When the sale proceeds will not follow the will

Proceeds won’t be distributed under the will if the proceeds are not estate property. Common reasons they are not estate property include joint ownership with survivorship rights, tenancy by the entirety, or a designated pay‑on‑death/beneficiary arrangement. Funds that pass outside probate follow the nonprobate title, not the will.

7. Timing and creditor deadlines

Before distributing assets, the personal representative must follow Maryland probate procedures to notify creditors and allow time for valid claims. That process may delay distributions. Contact the Maryland Courts probate pages to understand timelines and notice requirements: https://www.mdcourts.gov/probate/wills.

Helpful hints

• Find the deed: the county land records office (or its online site) will show how the home is titled.
• Ask for the estate inventory: the personal representative must list assets and liabilities; review it carefully.
• Keep records of communications: document any statements about sale proceeds and payments to creditors.
• Don’t accept verbal promises — get written accounting before beneficiaries accept distributions.
• Watch for family/homestead claims by a surviving spouse — these can change distributions.
• If someone claims the house passed outside probate, ask to see the recorded document (e.g., survivorship deed, beneficiary deed).
• When in doubt, consult a Maryland probate attorney early — a short call can clarify whether funds should go through probate or pass outside it.