Detailed Answer
When a person dies in Nevada without a valid will, any money remaining from the sale of that person’s property generally becomes part of the decedent’s probate estate. The court-appointed personal representative (sometimes called an administrator) must collect estate assets, pay valid debts and expenses, and then distribute the remaining funds to the legal heirs under Nevada’s intestate succession rules. For the statutes that govern who inherits when there is no will, see Nevada Revised Statutes, Chapter 134: NRS Chapter 134. For an overview of Nevada probate procedure, see the Nevada Courts’ probate self-help pages: nvcourts.gov/self-help/probate.
How sale proceeds enter the estate
If a property owned by the decedent is sold before the estate is fully administered, the net sale proceeds are an estate asset. The escrow or title company will usually require documentation (letters testamentary or letters of administration) from the probate court before releasing funds to anyone claiming them. Until the probate court authorizes distribution, the proceeds remain in the estate for creditor payment and lawful distribution to heirs.
Order of steps the personal representative follows
- Identify and gather estate assets (including sale proceeds).
- Notify heirs and known creditors and publish notice if required by the court.
- Pay valid debts, funeral expenses, taxes, and administration costs from estate funds.
- After paying liabilities and following any waiting periods required by the court, distribute the remainder to heirs according to Nevada intestacy rules.
Who inherits under Nevada intestacy rules
Nevada law sets a priority list for heirs. Typical outcomes under NRS Chapter 134 are:
- If the decedent leaves a surviving spouse and children, the spouse and children share under rules in NRS Chapter 134.
- If there is a surviving spouse but no descendants, the spouse may inherit the estate.
- If there is no spouse or children, the estate passes to parents, siblings, or more remote relatives in order of priority described in the intestacy statutes.
Because family situations vary (marriage, stepchildren, adopted children, community property issues), an exact division depends on the decedent’s family facts. See NRS Chapter 134 for statutory detail.
Common exceptions — funds that pass outside probate
Some funds do not enter probate and therefore are not distributed through intestacy:
- Assets with named beneficiaries (payable-on-death bank accounts, retirement accounts, life insurance) pass directly to the named beneficiary.
- Jointly owned property with rights of survivorship typically passes automatically to the surviving joint owner.
- Assets held in trust follow the trust terms and avoid probate.
If the sale proceeds were deposited into an account titled in a way that conveys the funds outside probate (for example, a payable-on-death designation), the funds may pass directly to the named payee instead of becoming estate property.
Practical example (hypothetical)
Hypothetical: Maria dies without a will. She owned a house that closed after her death. The escrow company held $120,000 in net proceeds. The probate court appoints an administrator. The administrator uses part of those proceeds to pay Maria’s final bills and funeral expenses. After creditors and taxes are paid, the administrator distributes the remainder to Maria’s heirs under Nevada’s intestacy laws (spouse, children, or other relatives as provided in NRS Chapter 134). If the house had been owned jointly with right of survivorship, the joint owner would likely receive the property (or proceeds) outright, and those funds would not flow through probate.
What a potential heir or claimant should do
- Identify how the property was titled and whether any beneficiary designation exists.
- Check with the escrow or title company about required probate documents to release funds.
- If probate is needed, file a petition with the probate court or ask the court how to open an administration.
- If you believe you are an heir and you are not being informed, contact the probate court clerk or consider consulting an attorney who handles probate and estate matters in Nevada.
Helpful Hints
- Keep original title documents, deeds, account statements, and any beneficiary designation forms together. These determine whether assets avoid probate.
- Before distribution, the administrator must pay valid creditor claims. Do not assume immediate distribution until the court closes the estate.
- If sale proceeds sit in escrow, expect the escrow company to ask for court-issued letters appointing an administrator before releasing funds.
- Use the Nevada Courts probate self-help pages for step-by-step guidance and local forms: nvcourts.gov/self-help/probate.
- When in doubt, talk with a Nevada probate attorney — they can explain local court practice and help you seek appointment as administrator if appropriate.
Disclaimer: This article provides general information about Nevada law and does not constitute legal advice. It is not a substitute for consulting a licensed Nevada attorney who can evaluate the specific facts and provide legal guidance tailored to your situation.