Short answer

If the home is sold to pay the decedent’s debts and the property was part of the probate estate, any money left after paying valid claims and administration costs generally becomes part of the estate residue and is distributed according to your dad’s will. But that general rule has important exceptions: property that passed outside probate (for example, by joint ownership with right of survivorship, tenancy by the entirety, or a valid beneficiary/transfer-on-death deed) will not be part of the probate estate. Also some statutory rights (surviving spouse allowances, homestead exemptions, or creditor priority rules) can affect how much money remains to distribute under the will.

Detailed answer — how this works in Michigan

1) Who controls the sale and payment of debts?

When someone dies, the person named in the will as personal representative (executor) or, if there is no will, the court-appointed administrator is responsible for locating assets, paying debts and taxes, and distributing what remains. If the home belongs to the probate estate and there is not enough cash to pay funeral costs, creditor claims, taxes, or administration expenses, the personal representative may sell estate assets (including the home) to raise funds for those obligations.

2) Order of payments: creditors and administration costs first

Michigan law requires that valid creditor claims, funeral expenses, taxes, and administration costs be paid before distributions to beneficiaries. After the personal representative collects money from a sale, they must apply funds to these priority obligations. Only after proper claims and costs are paid does any remaining money become the estate “residue” to be distributed under the will.

3) Is the leftover distributed according to the will?

Yes, if the home sale proceeds are part of the probate estate (i.e., the decedent owned the home in their name alone or otherwise as an estate asset), any leftover after debts and expenses will be distributed according to the will’s directions for the residue. If the will leaves the residue to named beneficiaries, the personal representative distributes the net balance according to those provisions.

4) Important exceptions — when the money may not go through the will

• Nonprobate ownership: If the house was owned jointly with right of survivorship or as tenancy by the entirety (a form of ownership for married couples), ownership typically passes automatically to the surviving co-owner outside probate. That means the property does not become part of the probate estate and its sale proceeds (if the co-owner sells) are not distributed by the will.
• Designated beneficiary / transfer-on-death deed: If the deed names a beneficiary or a valid transfer-on-death instrument exists, the property bypasses probate and goes directly to the named beneficiary.
• Community property or other third-party rights: If someone else had an ownership interest or the property secured a debt (e.g., mortgage), creditor claims and secured lenders can affect whether net proceeds remain for the estate.
• Surviving spouse claims and exemptions: Michigan provides certain allowances and exemptions that protect a surviving spouse and dependents (for example, family or homestead allowances and elective-share rules). These can reduce the amount available for distribution under the will.

5) Hypothetical example

Suppose Dad died owning the house in his sole name. The executor sells the house for $200,000. Valid creditor claims, taxes, funeral costs, and administration expenses total $50,000. The remaining $150,000 is estate cash. If the will leaves the residue to Daughter, the executor distributes that $150,000 to Daughter (after following any applicable spouse allowances or other statutory deductions).

By contrast, if Dad and Mom owned the house as tenants by the entirety, the house passes automatically to Mom. If Mom then sells the house, the sale proceeds belong to her and would not be distributed under Dad’s will.

6) Practical steps you can take

1. Check the deed and title: determine whether the property was owned in Dad’s sole name, jointly, or with a transfer-on-death designation.
2. Ask the personal representative or probate court for an accounting of asset sales and payments. Probate proceedings generally require notice to heirs and creditors and provide records of distributions.
3. Confirm whether a surviving spouse has statutory claims or exemptions that reduce the estate residue available to will beneficiaries.

7) Where Michigan law covers these topics

Michigan’s Estates and Protected Individuals Code governs probate, creditor claims, and distributions. You can review the probate code (Chapter 700) at the Michigan Legislature website for more detail: Michigan Compiled Laws — Chapter 700 (Estates and Protected Individuals Code). For practical probate guidance from the courts, see the Michigan Courts probate information pages: Michigan Courts.

Helpful Hints

• Start by getting a copy of the deed and the will. Those documents often answer whether property passes through probate.
• If you are an heir or beneficiary, request a probate accounting or attend the probate hearing to see how assets and debts were handled.
• Look for common nonprobate devices: joint tenancy, tenancy by entirety, pay-on-death accounts, and beneficiary deeds. These bypass probate and the will.
• Be aware of deadlines for contesting creditor payments or filing objections in probate court. Acting sooner preserves options.
• If a surviving spouse may be entitled to statutory allowances or an elective share, that can reduce estate residue available to other beneficiaries—ask the personal representative how those were handled.
• Keep records: copies of the sale closing statement, creditor claims, and the executor’s accounting are key documents for verification.