Short answer: It depends on how the house was titled and whether the home is a probate asset. If the house is part of your dad’s probate estate, the sale proceeds (after paying mortgages, liens, taxes, funeral and administration costs, and valid creditor claims) generally become part of the estate and are distributed according to your dad’s will. If the house passed automatically to someone else outside probate (for example, by survivorship or beneficiary designation), the leftover money usually belongs to that non‑probate owner and is not governed by the will.

Why ownership and title matter

When someone dies, a specific asset’s path depends on how title or ownership was structured before death:

• Sole ownership in your dad’s name: The property is a probate asset. If the executor sells it, sale proceeds go into the estate, creditors are paid, and whatever remains (the residue) is distributed under the will.
• Joint ownership with right of survivorship or tenancy by the entirety: The surviving owner usually takes full ownership automatically at death. The property (and the sale proceeds) bypass probate and are not distributed by the decedent’s will.
• Property held in a trust or with a payable‑on‑death beneficiary: Those arrangements transfer outside probate. The trust or beneficiary designation controls distribution.

What gets paid first when the house is sold

Typically the estate pays, in roughly this order:

1. Costs of administration (executor fees, court costs, appraisal and sale costs)
2. Mortgage balance, secured liens, and property taxes tied to the home
3. Funeral expenses and required family allowances (if applicable)
4. Valid creditor claims filed against the estate
5. Taxes due by the estate (income or estate taxes, if any)

After these are paid, the remaining money (the residue) is distributed according to the will if the asset is part of the probate estate.

Typical steps an executor follows

• Locate the original will and file it with the probate court.
• Ask the court to appoint an executor (if one is not already named or serving).
• Inventory estate assets and determine which are probate vs. non‑probate.
• Obtain court approval (if required) to sell real property.
• Sell the house, pay liens and valid claims, and keep records.
• Request court permission to distribute remaining assets to beneficiaries named in the will.

Common scenarios (hypothetical facts)

Scenario A — House titled only in Dad’s name: Dad dies; executor sells the house for $300,000. Mortgage and liens total $120,000, closing and admin costs $10,000, and valid creditor claims $20,000. After paying those, the remaining $150,000 is estate residue and is distributed per the will.

Scenario B — House titled as joint tenants with Mom: Dad dies; ownership automatically vests in Mom. If Mom sells the house after probate, the proceeds belong to Mom, not to beneficiaries under Dad’s will.

Scenario C — House held in a living trust: The trustee follows the trust terms. The sale proceeds go to the trust or its beneficiaries under the trust document, not under the will.

When the will does not control

The will only controls probate assets. Assets that pass by operation of law (survivorship, joint tenancy, tenancy by entirety), trust assets, or assets with designated beneficiaries do not get distributed by the will. If you are unsure how the house was titled, check the deed at the county registry of deeds and ask the executor for documentation.

Where to find New Hampshire guidance

For general New Hampshire probate process information and forms, consult the New Hampshire Judicial Branch probate pages: https://www.courts.nh.gov/services/probate-estate. For the state statutes and more detailed legal language, see the New Hampshire Revised Statutes Online: https://www.gencourt.state.nh.us/rsa/html/indexes/default.html.

Disclaimer: I am not a lawyer. This article provides general information about New Hampshire probate concepts and is not legal advice. For advice about a specific situation, consult a licensed New Hampshire estate or probate attorney or contact the probate court handling the estate.