Detailed answer

Short answer: If your parents’ home was owned by your dad’s probate estate when it was sold, then the net sale proceeds (after paying mortgages, liens, funeral costs, taxes, administration costs and valid creditor claims) become estate property and any remaining money is distributed according to your dad’s will. But if the house passed outside probate — for example, it was owned jointly with right of survivorship, held in a living trust, or subject to another survivorship/beneficiary arrangement — the sale proceeds may never enter probate and would not be distributed under the will.

How this works in Tennessee — step by step

1. Who owned the house at death? The first question is whether the decedent owned the house individually (in which case it typically becomes part of the probate estate) or whether title passed automatically to someone else (joint tenancy with right of survivorship, tenancy by the entirety, trust ownership, or a beneficiary/transfer-on-death designation). If title passed automatically, the property (or its sale proceeds) usually avoids probate and is not controlled by the will.
2. If the house is part of probate: The executor (personal representative) gathers estate assets, pays valid debts and administration expenses, pays taxes and any statutory allowances, and then distributes the remaining “residue” according to the will. So, after sale and payment of obligations, leftover funds normally flow to the beneficiaries named in the will.
3. Creditor claims and waiting periods: Executors must follow Tennessee probate procedure for notifying creditors and allowing time for claims. Distributing funds before claims are resolved can create liability for the executor if undisclosed valid claims later surface.
4. Priority claims and exemptions: Tennessee law provides certain allowances and exemptions (for example, family allowance, exempt property, and funeral expenses) that can reduce the amount available to pay heirs. These priorities are paid before the will beneficiaries receive the residue.
5. If title passed outside probate: A joint owner or trust successor who sells the home can use sale proceeds as their property. Those proceeds do not get distributed under the decedent’s will unless those proceeds were actually estate property.

Common examples (hypothetical)

Example A (estate-owned house): Dad owned the home in his name only. The estate sells the home for $300,000, pays off a $200,000 mortgage, $10,000 in funeral/administration costs, $5,000 in taxes, and $5,000 in creditor claims. The remaining $80,000 is estate residue and will be distributed under Dad’s will (after the court-supervised creditor period and specific statutory steps are complete).

Example B (non-probate transfer): Dad held the home jointly with Mom as joint tenants with right of survivorship. Mom survives and the title passes to her automatically. If Mom sells the house, the sale proceeds belong to Mom and are not governed by Dad’s will.

Key Tennessee resources and statutes

For general guidance on probate and how estates are handled in Tennessee, see the Tennessee Courts probate self-help pages: https://www.tncourts.gov/programs/self-help/probate.

To review Tennessee statutory law or specific probate code sections, the state legislature’s code index is available at: https://www.capitol.tn.gov/. Search there for probate, administration of estates, creditor claims, and exemptions (for example, look under titles and chapters addressing wills and estate administration).

Note: the probate court in the county where the decedent lived supervises administration and enforces notice and creditor procedures. Your local probate clerk or the Tennessee Courts self-help pages can explain local filing steps.

When the will might not control money from a sale

• Joint tenancy / right of survivorship — passes to surviving owner outside probate.
• Property held in a living trust — trust terms control distribution, not the will.
• Transfer-on-death / beneficiary deed — proceeds follow the named beneficiary outside probate.
• Proceeds already paid to a surviving co-owner — if the co-owner had legal title at death, the funds are theirs.

Practical steps you can take now

• Check the deed at the county register of deeds to see how title was held (individual, joint, trust, etc.).
• Ask the executor/personal representative for a copy of the death certificate, the deed, and an inventory of estate assets and creditor notices.
• Confirm whether the probate court has opened an estate case and whether the executor has filed an inventory and creditor notice. Many creditor deadlines and protections are tied to those filings.
• Do not accept distributions as final until creditor periods and court procedures are complete; if you receive a distribution and later valid claims appear, the executor or beneficiaries may face legal consequences.
• If ownership or distribution is unclear, consult a Tennessee probate attorney for advice specific to the facts.

Helpful hints

• Ownership matters most: verify title immediately (county deed records).
• Sale proceeds are estate property only if the decedent still owned the home at death.
• Ask whether the executor followed probate notice and claim procedures before any final distributions.
• Keep records of all communications, sale documents, and settlement statements from the sale.
• Know that some claims (taxes, funeral costs, statutory allowances) have priority over beneficiaries named in a will.
• If you suspect improper distribution, you can ask the probate court to review the executor’s actions and, if justified, seek recovery or surcharge.

Disclaimer: This article provides general information about Tennessee probate concepts and is not legal advice. It does not form an attorney-client relationship. For advice tailored to your situation, contact a licensed Tennessee attorney who practices probate or estate law.