How leftover sale proceeds are handled in New Hampshire when someone dies without a will

Short answer: If a person dies without a will (intestate) in New Hampshire, money left over from the sale of their property becomes part of the decedent’s estate. A probate court-appointed personal representative (administrator) must collect those funds, pay valid debts and expenses, and then distribute any remaining money under New Hampshire’s intestacy rules. If no lawful heirs exist, the funds may ultimately pass to the state.

Detailed answer — step by step

1. Identify whether the funds are part of the probate estate

Not all proceeds automatically go through probate. Proceeds will be part of the probate estate unless they already passed outside probate (for example, via a joint tenancy right of survivorship, a pay-on-death or transfer-on-death designation, or a named beneficiary). If the sale closed and the money went into an account or escrow in the decedent’s name alone, the funds are generally an estate asset.

2. Open probate or a summary procedure, if appropriate

Because the decedent died intestate, someone (often a spouse, adult child, or other close relative) must petition the probate court to be appointed administrator for the estate. The administrator has legal authority to collect assets (including sale proceeds), pay lawful debts, and distribute the remainder according to intestate succession.

3. Collect and secure the proceeds

The administrator gathers bank statements, the closing statement from the sale, and any escrow or settlement documents proving the source and amount of the funds. The administrator should place estate funds in a separate estate account and keep careful records. If a third party (escrow company, title company, or buyer) still holds the proceeds, they usually will only release funds with court authorization or an agreement by all interested parties.

4. Pay debts, taxes, and estate expenses first

Before any distribution to heirs, the estate must pay valid creditor claims, funeral costs, outstanding mortgages or liens related to the sold asset, probate costs, and any required taxes. New Hampshire law establishes the priority and procedures for creditor claims in probate; the administrator must follow those rules and the court’s instructions.

5. Distribute any remaining funds under New Hampshire intestacy rules

After lawful claims and expenses are paid, the administrator distributes the leftover proceeds to heirs according to New Hampshire’s intestacy laws. Generally, distribution follows a hierarchy: a surviving spouse and descendants (children), then parents, then more distant relatives. If the decedent has no surviving heirs, the estate may escheat to the State of New Hampshire.

6. Special situations to watch for

• Joint accounts, POD/TOD designations, or survivorship rights typically bypass probate and pass directly to the named co-owner or beneficiary.
• If the sale produced proceeds while the decedent was alive but the decedent died before closing, questions can arise about who had title at closing; the contract and escrow instructions matter.
• If the estate is small, New Hampshire procedures may allow simplified or summary administration that speeds release of funds without a full probate docket—check the probate court rules and local practices.

Practical examples (hypotheticals)

Example 1 — Simple probate: A homeowner dies without a will. Their house sells, and the proceeds land in an account titled in the decedent’s name. An adult child petitions to be administrator, secures the funds in an estate account, pays the mortgage balance and funeral expenses, and then distributes the net proceeds to the surviving spouse and children under the court-approved intestate distribution.

Example 2 — Passes outside probate: A different decedent had named a specific beneficiary on an account used to receive sale proceeds. Those funds transfer directly to the named beneficiary and do not become part of the probate estate.

What to do now — recommended next steps

1. Locate any will or beneficiary designations. If none exist, prepare to open probate.
2. Gather documents: closing/settlement statements, bank statements, titles, mortgage statements, and the death certificate.
3. Contact the probate court in the county where the decedent lived to learn local filing requirements and any small-estate shortcuts.
4. Consider hiring a probate attorney if the estate has significant assets, unresolved debts, potential disputes, or complicated title issues.
5. Do not distribute funds to heirs before debts are addressed and the court approves distributions. Premature distribution can expose the distributor to personal liability.

Useful New Hampshire resources

• New Hampshire Judicial Branch — Probate Courts: https://www.courts.state.nh.us/courts/probate/
• New Hampshire Revised Statutes and legislative materials (general index): https://www.gencourt.state.nh.us/

Helpful Hints

• Keep estate funds separate. Open an estate bank account rather than mixing personal funds.
• Get multiple death certificates; institutions often require originals or certified copies.
• Ask the title or escrow company whether funds can be held or must be released to an administrator. They often require a court order or letters of administration.
• Notify known creditors and allow the probate process to address claims before distributing assets.
• If you suspect unknown heirs, do a careful search—escheat procedures can be complex if heirs later appear.
• Keep detailed receipts and accounting—administrators must report to the court and heirs.

Disclaimer: This article explains general legal principles under New Hampshire law and is for educational purposes only. It is not legal advice and does not create an attorney-client relationship. For advice about a specific situation, contact a licensed New Hampshire probate or estate attorney or the local probate court.