Detailed Answer

When a person dies without a will (intestate) in Mississippi, any money that belongs to the decedent — including leftover proceeds from a sale of real estate or other property — becomes part of the decedent’s probate estate unless the funds passed outside probate by law. The probate court supervises collection of assets, payment of debts and taxes, and distribution of the remaining funds to heirs under Mississippi’s intestacy rules.

1. Is the sale proceeds part of the probate estate?

Yes, unless the proceeds already transferred outside probate. Common nonprobate transfers include:

• Funds in an account with a named payable-on-death (POD) beneficiary or transfer-on-death (TOD) designation;
• Proceeds that went directly to a surviving joint owner holding property with right of survivorship;
• Proceeds paid directly to an identified beneficiary under a contract, deed, or beneficiary designation.

If none of those apply, the sale proceeds are an estate asset and must be handled through probate.

2. Who controls the money during probate?

A court appoints a personal representative (administrator) if there is no will naming an executor. The administrator secures assets, pays lawful creditors and taxes, and distributes remaining funds to heirs. To begin, a petition for administration is filed in the local chancery or county probate court. The court issues letters of administration that give the administrator legal authority to act.

3. How are creditors and expenses handled?

The administrator must pay valid debts, funeral costs, administration expenses, and taxes from estate assets before distributing any leftover funds. Mississippi law governs claim periods and creditor priorities. Only after paying these obligations can the administrator distribute the net proceeds to heirs.

4. Who inherits under Mississippi’s intestacy rules?

Intestate distribution depends on who survives the decedent (spouse, children, parents, siblings, etc.). The estate is divided according to Mississippi’s descent and distribution statutes. Because family situations vary, the exact split depends on whether a spouse and/or descendants survive the decedent and whether those descendants are also descendants of the surviving spouse.

For the governing Mississippi statutes on intestate succession and probate administration, see the Mississippi Code (Title 91 and related provisions) on the Mississippi Legislature website: https://www.legislature.ms.gov/.

5. Practical examples (hypotheticals)

Example A — Decedent owned and sold a house before death and the bank still holds $50,000 in the decedent’s account with no POD beneficiary. The administrator must include that $50,000 in the probate estate, pay valid debts and taxes, then distribute the remainder under intestacy rules.

Example B — Decedent sold a house but the sale proceeds were paid to a joint account with right of survivorship. The surviving joint owner automatically owns the funds; they do not pass through probate.

6. Timeframe and likely timeline

Probate timelines vary. The administrator typically must:

1. File for letters of administration;
2. Inventory estate assets (including sale proceeds);
3. Notify creditors and pay allowable claims within statutory periods;
4. Prepare an accounting and petition the court for distribution;
5. Distribute remaining funds to heirs per statute.

The entire process can take months to more than a year depending on complexity, creditor claims, disputes, and court schedules.

7. What if heirs disagree or someone contests administration?

Heirs may contest the administrator’s actions or file disputes over whether funds are estate property or nonprobate. The probate court resolves contested issues. If disagreements arise, consider hiring an attorney experienced in Mississippi probate and intestacy law.

Statutes and where to read them

Key topics you may want to read in the Mississippi Code include intestate succession (descent and distribution) and probate administration rules (often found in Title 91 and related provisions). The Mississippi Legislature maintains the state code and court information at: https://www.legislature.ms.gov/. For specific statutory language, search the Code for terms like “intestate,” “descent and distribution,” and “letters of administration.”

Important: This article provides a general overview. Mississippi law contains specific rules and exceptions that apply to particular facts.

Helpful Hints

• Secure the funds: If you find sale proceeds belonging to a deceased person, keep bank records safe and contact the bank to report the death. Do not spend estate funds.
• Check for nonprobate designations: Look for POD/TOD designations, joint ownership, or beneficiary designations that could move money outside probate.
• Obtain death certificates: Banks and the probate court will require certified copies to process claims and open an estate file.
• File for administration promptly: If you are entitled to administer the estate, petition the local probate or chancery court for letters of administration to act legally on behalf of the estate.
• Keep good records: Track receipts, bills paid, and distributions. The administrator will need to provide an accounting to the court and heirs.
• Talk to a probate attorney if unsure: If the estate is large, has possible creditors, contains real estate, or if heirs dispute distribution, consult a Mississippi probate attorney to protect rights and avoid mistakes.
• Expect creditor claims: Do not distribute funds until you allow for creditor claims and taxes. Unauthorized distribution can create personal liability for the administrator.

Disclaimer: This article is educational only and does not provide legal advice. It summarizes general principles of Mississippi probate and intestate succession. For advice about a specific situation, consult a licensed Mississippi attorney who handles probate and estate matters.