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If a person who recently sold property or otherwise had cash from a sale dies without a will (intestate) in New Mexico, any remaining sale proceeds that belonged to that person at the moment of death normally become part of the decedent’s probate estate. Those proceeds do not automatically pass to buyers, relatives, or others unless a lawful transfer already occurred before death.

Here are the main steps and rules that usually apply:

• Who controls the proceeds: The probate court appoints a personal representative (called an administrator when there is no will). The administrator collects estate assets (including cash from sales), pays valid debts and expenses, and distributes what remains to heirs under New Mexico’s intestate succession rules. For general probate guidance, see the New Mexico Courts probate self-help pages: https://www.nmcourts.gov/self-help/probate/.
• When proceeds are already in escrow or contract status: If sale funds were held by an escrow or title company at the time of death, the escrow holder will usually follow the escrow instructions and will require documentation (death certificate, letters of administration, or court order) before releasing funds. If the sale had not closed, the administrator may need to complete or rescind the transaction depending on contract terms.
• Paying debts and expenses first: The administrator must identify and pay valid creditor claims, funeral and administration costs, taxes, and other allowable expenses before distributing any remainder to heirs. Only the net balance is distributed.
• Distribution to heirs (intestate succession): After debts and administration costs are paid, the remaining money is distributed under New Mexico’s intestacy rules. Those rules determine who inherits (spouse, children, parents, siblings, etc.). You can review New Mexico statutory law resources via the state legislature site: https://www.nmlegis.gov/, which provides access to the New Mexico Statutes (search under probate/intestate succession).
• No identifiable heirs: If the court and administrator cannot find any lawful heirs, estate property eventually escheats to the State of New Mexico or may be delivered as unclaimed property. The State Treasurer’s unclaimed property office handles many such funds; see: https://www.nmtreasurer.org/unclaimed-property/.
• Small estate procedures: Some estates qualify for simplified procedures (summary administration or small‑estate affidavit) that let heirs claim cash or other assets without full probate. Eligibility rules and steps vary. Check the probate court or the New Mexico Courts self‑help pages for local procedures.

Practical examples (hypotheticals):

• If a decedent sold a house and received the net sale check that remained in the decedent’s bank account at death, that cash is an estate asset. The administrator collects the balance, pays debts, and distributes what remains to heirs under intestacy.
• If sale proceeds were in escrow and the buyer closed before the seller’s death, proceeds likely went to the seller’s account; the administrator will treat those funds as estate property. If escrow held funds and a closing hadn’t occurred, the escrow agent will hold funds until provided with documentation from the court or administrator.

Key procedural points to watch:

• Someone (often a close relative) must open a probate case and ask the court to appoint an administrator.
• The administrator provides the court with an inventory of estate assets, including any sale proceeds.
• Creditors have the right to present claims; valid claims are paid out of estate assets before distributions.
• After claims and costs, the administrator petitions the court to distribute remaining funds to heirs.

For statute references and exact procedures, search the New Mexico statutes and probate rules at the New Mexico legislature and court websites: https://www.nmlegis.gov/ and https://www.nmcourts.gov/self-help/probate/. If you cannot locate heirs or you think funds should be returned to a buyer or third party, contact the escrow/title company and the county probate clerk promptly.

Helpful Hints

• Act quickly: Open probate or contact the escrow agent soon after the death to prevent funds from being frozen or transferred incorrectly.
• Get several certified copies of the death certificate early—escrow, banks, and courts will ask for them.
• Collect documentation: sale contracts, escrow statements, bank statements, property deeds, and any beneficiary or transfer-on-death documents.
• Check for a will before assuming intestacy. A will can change the person who receives proceeds.
• Ask the escrow/title company for instructions in writing about how they will handle the funds and what documents they need to release them.
• Use small‑estate forms if the estate qualifies to avoid full probate—ask the probate clerk whether simplified procedures apply.
• Keep careful records of all payments made by the administrator (creditors, taxes, expenses) to avoid disputes with heirs later.
• If no relatives appear to be heirs, check the State Treasurer’s unclaimed property database after a reasonable time: https://www.nmtreasurer.org/unclaimed-property/.
• When in doubt, consult a probate attorney in New Mexico—especially if the estate has large assets, unclear title issues, or disputes among potential heirs.