Short answer
Yes — if a parent’s home is sold by the estate or by the personal representative to pay debts and expenses, any money left after paying valid debts, funeral and administration costs, taxes, and court-ordered allowances generally becomes part of the probate estate and will be distributed according to the decedent’s will. However, money or property that is not part of the probate estate (for example, property held in joint tenancy with right of survivorship, assets titled to a trust, or accounts with named beneficiaries) does not pass through probate and therefore is not distributed under the will.
How this works in Nebraska
When someone dies in Nebraska, a personal representative (also called an executor if named in a will) handles the estate through probate under Nebraska probate law. The representative must locate estate assets, pay valid creditor claims and administration costs, and then distribute any remaining assets according to the will. The Nebraska Probate Code governs the process; see Chapter 30 of the Nebraska Revised Statutes for the statutory framework: Neb. Rev. Stat., Chapter 30 (Probate Code).
Key steps the personal representative follows
- Identify and collect estate assets (bank accounts, real estate, personal property).
- Provide notice to creditors and pay valid creditor claims and taxes.
- Sell assets if needed to pay debts or to carry out the terms of the will.
- Pay funeral expenses, probate costs, and any allowed family or homestead allowances.
- Prepare an accounting and distribute the remaining estate according to the will or, if no will, under Nebraska intestacy rules.
Common exceptions — when proceeds do NOT go through the will
Before assuming leftover sale proceeds will pass under your father’s will, check whether the property or proceeds fall into any of these categories:
- Nonprobate property: jointly owned property with right of survivorship usually passes automatically to the surviving joint owner, not under the will.
- Trust property: real estate or accounts titled in a living trust pass according to the trust terms.
- Payable-on-death (POD) or transfer-on-death (TOD) designations: bank accounts, securities, and some real estate with beneficiary designations avoid probate and pass directly to the named beneficiaries.
- Homestead protections, family allowance, or exempt property: Nebraska law provides certain protections for a surviving spouse and minor children that can affect how much of the estate is available for distribution under the will.
What to check right now
- Who owns the house? Look at the deed. If it’s in your father’s name alone and subject to probate, proceeds likely become estate property.
- Was there a will or a trust? If the house was in a trust, the trust terms control.
- Is there a named beneficiary or joint owner? If yes, the property or proceeds may pass outside probate.
- Has someone been appointed personal representative? That person is the one who will manage sale and distributions under court supervision.
- Ask for an estate inventory and accounting. Nebraska courts require administration steps and supervision of actions by the representative.
What if you disagree with the handling or distribution?
You can ask the court for review. Common remedies include asking the county court that handles probate to require a formal accounting, objecting to creditor claims, petitioning to remove or surcharge a personal representative for mismanagement, or contesting whether property belonged to the estate. Time limits and procedural rules apply, so act promptly and consider getting legal help.
Helpful hints
- Collect documents: death certificate, will, deed to the house, recent mortgage statements, bank statements, and any beneficiary designations.
- Confirm title: check the county recorder’s office for how the property is titled.
- Talk to the personal representative: request a copy of the inventory or proposed accounting.
- Keep records: save receipts, communications, and copies of filings in the probate case.
- Watch deadlines: Nebraska’s probate process has deadlines for creditor claims and for objecting to actions in the case.
- Seek legal help early if you expect a dispute or if large assets are involved. An attorney experienced in Nebraska probate law can explain specific deadlines and rights.