Detailed answer — what happens to leftover money after a home is sold and debts are paid?

When a deceased person’s home is sold as part of settling their estate, the money from that sale is treated like any other estate asset. Under Nevada probate practice, the person in charge of the estate (called the personal representative or executor) must first use the sale proceeds to pay valid estate obligations: secured debts (for example, a mortgage or lien on the property), funeral and administrative expenses, taxes, and other creditor claims. After those lawful charges are paid, any remaining funds become part of the decedent’s residuary estate.

If the decedent left a valid will, the residuary estate is distributed according to the directions in that will. If the will gives a specific gift of money or the remainder to named beneficiaries, the leftover cash will be paid to them in the order and proportion the will describes. If there is no will (intestate), Nevada’s probate statutes provide a default order of inheritance that determines who receives the remaining assets.

Key points to keep in mind:

• The executor or personal representative must follow the probate process and pay creditors before distributing anything to beneficiaries.
• If estate debts and valid claims equal or exceed the available estate assets, beneficiaries often receive nothing. If assets exceed liabilities, beneficiaries receive the surplus per the will or intestate rules.
• Some property transfers may bypass probate entirely (for example, property owned jointly with right of survivorship, or property held in a trust). In those cases, sale proceeds may not become part of the probate estate at all.
• Certain protections such as a homestead allowance or exemptions may affect how much of the proceeds are reachable by unsecured creditors, depending on the facts and whether an exemption is properly claimed.

For Nevada-specific probate rules and general statutory framework, see the Nevada Revised Statutes and the Nevada Courts’ probate self-help resources:

• Nevada Revised Statutes (NRS) — searchable index
• Nevada Courts — Probate Self‑Help and Forms

Common scenarios explained

1) Home sold by the personal representative during probate

The sale proceeds are estate funds. The personal representative uses the proceeds to pay mortgage or deed-of-trust holders first (secured creditors), then other creditors and administration costs. Any surplus is distributed under the will or by intestate succession.

2) Home sold before probate by the surviving co-owner

If title passed automatically (for example, joint tenancy with right of survivorship) to a surviving owner, the home may not be an asset of the probate estate. Proceeds from a sale by the surviving co-owner usually belong to that co-owner and are not distributed under the deceased person’s will.

3) Home held in a trust

If the home was owned by a revocable trust, trust terms govern distributions. The trustee pays debts and follows the trust instructions; probate usually is avoided.

4) Estate insolvent (debts exceed assets)

If the estate is insolvent, Nevada law dictates the order in which creditors are paid. Beneficiaries receive nothing until all creditor priorities are satisfied.

Helpful hints — what you can do next

1. Identify the personal representative or executor. They have the legal duty to collect assets, pay debts, and distribute what remains.
2. Ask for an inventory and accounting. Beneficiaries are typically entitled to notice of probate proceedings and a summary of assets and distributions.
3. Check whether title passed outside probate (joint tenancy, beneficiary deed, trust). If so, those transfers may affect whether sale proceeds are part of the estate.
4. Confirm whether a mortgage or lien existed on the home; secured creditors are paid from sale proceeds before beneficiaries.
5. If you believe the personal representative is not following the will or Nevada law, you can request a copy of probate filings at the local district court and consider filing a motion or objection in probate court.
6. Preserve documents: the will, deed/title documents, mortgage records, bills related to the property, and any trust documents.
7. Be aware of timelines. Creditors must file timely claims in probate; beneficiaries should act promptly if they have concerns.
8. Ask about tax implications. Nevada has no state estate tax, but federal estate tax and income or capital gains issues can arise depending on the situation.
9. When in doubt, consult a Nevada probate attorney or estate lawyer to review the will, sale, and proposed distributions. An attorney can explain local court practice and help protect beneficiary rights.