Short answer: It depends on who owned the house and how title was held. If the house was part of your dad’s probate estate (owned solely by him or by his estate), the net sale proceeds (sale price minus mortgage, liens, closing costs and valid debts) generally become part of his estate and are distributed according to his will (after probate and creditor claims). If the house passed automatically outside probate (for example, held with right of survivorship, owned by a living trust, or otherwise had a non‑probate transfer), the proceeds usually pass to the person(s) who owned it outside the will.

This is general information only and not legal advice.

Detailed answer — how Minnesota law typically treats home sale proceeds

1) Determine how title was held

The most important first step is to look at the deed and title history. Common ownership scenarios:

• Sole ownership in your dad’s name: The house (and the proceeds from its sale after debts) are normally part of your dad’s probate estate. The personal representative (executor) collects assets, pays valid debts and taxes, and distributes any remainder under the will.
• Joint ownership with rights of survivorship: If the deed names two owners with right of survivorship (often called “joint tenants with right of survivorship”), ownership automatically goes to the surviving owner at death. That means the property (or sale proceeds if the property was sold after death but title passed by survivorship first) is not distributed by the will.
• Tenancy by the entirety: When a married couple holds title as tenants by the entirety (a form of joint ownership available for spouses in many states), the surviving spouse typically takes ownership automatically, outside probate.
• Trust ownership: If the home was owned by a revocable living trust, trust terms (not the will) control who receives the proceeds.
• Deed with beneficiary designation: Some instruments transfer real property outside probate (e.g., a transfer-on-death mechanism). If valid, they override distribution under a will for that asset.

2) If the house is probate property

When the house is part of the probate estate, the estate process in Minnesota generally works like this:

1. The personal representative gathers estate assets, including sale proceeds if the rep sells the house or receives proceeds from a sale authorized by the estate.
2. Creditors and taxes are paid first. The representative must give notice to creditors and allow claims under Minnesota probate procedures. See Minnesota’s probate statutes for the procedures that govern creditor claims and timing: Minn. Stat. ch. 524 (Probate Code).
3. After valid debts, taxes, and administration costs are paid, remaining funds are distributed according to the will. If there is no will, Minnesota’s intestacy rules determine heirs.

3) Special rights for a surviving spouse and homestead considerations

Minnesota law recognizes certain rights that can affect distribution, such as homestead allowances and protections for surviving spouses and dependents. These rights can shield some property or funds from immediate distribution under the will. For general probate guidance in Minnesota, see the Minnesota Judicial Branch probate information: https://www.mncourts.gov/Help-Topics/Probate.aspx.

4) Selling the home before or during probate — practical effects

If the house is sold while the estate is being administered, the sale proceeds sit in the estate accounts. The personal representative is responsible for paying mortgage payoffs, liens, taxes, funeral expenses, and creditor claims, then distributing the remainder according to the will. If sale happened before death and your dad received the money and it remained in his individual account at death, those funds are generally estate assets.

5) When money does NOT go through the will

There are common situations where leftover sale money will not be distributed according to your dad’s will:

• Proceeds passed automatically because of joint ownership with survivorship rights.
• Proceeds were owned by a trust or another non‑probate vehicle.
• The buyer or a creditor had a valid lien that absorbed the funds before distribution.

6) Practical steps to figure out what will happen

1. Obtain a copy of the deed from the county recorder’s office or online title records to see how title was held.
2. Check for a mortgage, lien, or other encumbrances that must be paid at sale.
3. Locate your father’s will and identify the personal representative named in the will or any trust documents.
4. Ask the personal representative for an accounting or status update on probate administration and distributions.
5. If unclear or contested, consult a Minnesota probate attorney to review deeds, title, and the estate paperwork.

Where to look in Minnesota law

The Minnesota Probate Code and related court guidance explain how estates are opened, how creditors make claims, and how property is administered and distributed. See Minnesota’s probate statutes here: Minn. Stat. ch. 524, and general probate help at the Minnesota Judicial Branch: https://www.mncourts.gov/Help-Topics/Probate.aspx.

Important reminder: This article describes common outcomes under Minnesota law but does not cover every unique fact pattern. Small differences in how title is worded, whether a trust exists, or whether the sale occurred before or after death can change the result.

Helpful Hints

• Start by pulling the deed from the county recorder to confirm ownership and survivorship language.
• If the property was in both parents’ names, check whether the deed uses terms like “joint tenants with right of survivorship” or “tenants by the entirety.” Those words usually mean the property passes outside the will.
• If the home was sold and proceeds are in a bank account, those funds are likely estate assets if they remained in your dad’s name at death.
• Ask the personal representative for a written inventory and accounting if you’re an interested party; Minnesota probate rules require notice and records during administration.
• If total estate assets are small, Minnesota has simplified procedures for small estates that may allow faster distribution — ask a local probate clerk or attorney.
• When in doubt, consult a licensed Minnesota probate attorney early. A short consultation can clarify whether the proceeds should flow through probate or to non‑probate beneficiaries.

Disclaimer: This article is educational only and not legal advice. For guidance about a specific estate, contact a licensed Minnesota attorney who handles probate and estate matters.