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Short answer: In Oregon, money left from selling a decedent’s property becomes part of the decedent’s estate. If the person died without a will (intestate), a court-appointed personal representative (administrator) or the small‑estate procedures handle the funds: creditors and expenses are paid first, then the remaining proceeds are distributed to heirs under Oregon’s intestacy rules (ORS Chapter 114). If no heirs can be found, the remaining funds may ultimately go to the State of Oregon.

Step-by-step explanation

1. Proceeds become estate property. Any sale proceeds from assets owned by the decedent at death generally belong to the decedent’s estate. That holds even if the sale happened shortly before or after death, unless the account or title had a valid beneficiary or joint-owner arrangement that allows the funds to pass outside probate.
2. Determine whether the funds bypass probate. Some funds never enter probate: payable-on-death (POD) accounts, jointly owned accounts with rights of survivorship, life insurance or retirement plan proceeds that name a beneficiary. Those pass directly to the named beneficiary and are not distributed under intestacy rules.
3. Open probate or use small-estate procedures if needed. For amounts that must be administered through probate, someone (often a close relative) petitions the probate court to be appointed personal representative (also called administrator). Oregon also offers simplified procedures for small estates so beneficiaries can collect modest amounts without full probate.
4. Pay creditors, taxes, and expenses first. The personal representative uses estate assets (including sale proceeds) to pay funeral costs, administrative expenses, outstanding bills, and creditor claims permitted by the court. Federal or state estate or income taxes (if any) are paid according to applicable rules.
5. Distribute the remainder under Oregon intestacy law. After valid claims are paid, the remaining funds are distributed to heirs according to Oregon’s intestate succession statutes (see ORS Chapter 114). Who inherits depends on which relatives survive the decedent: spouse, children (descendants), parents, siblings, and more remote relatives in a statutory order.
6. If no heirs exist or cannot be found. If an heir search fails and no lawful heirs exist, remaining estate property may escheat to the State of Oregon according to state law.

Common scenarios (examples)

– If a decedent leaves a surviving spouse and children, the proceeds typically are split among the spouse and children according to the statutory share rules.
– If a decedent leaves only a surviving spouse and no descendants, the spouse usually receives all of the probate estate.
– If no spouse, no descendants, but surviving parents, the proceeds generally pass to the parents.
– If the proceeds were in a POD account naming a beneficiary, the beneficiary receives the funds directly and probate distribution rules do not apply.

These examples are illustrative. The precise distribution depends on the decedent’s surviving relatives and the nature of the assets.

Key Oregon statutes and resources

• Intestate succession (who inherits when there is no will): Oregon Revised Statutes, Chapter 114 — https://www.oregonlegislature.gov/bills_laws/ors/ors114.html

For probate procedures and small-estate options, check the Oregon Judicial Department and Oregon Revised Statutes governing probate administration. If you need help locating the exact procedural statute, the court clerk in the county where the decedent lived can point you to the correct forms and local rules.

Disclaimer: This is general information, not legal advice. I am not a lawyer. Laws change and every situation is different. For advice about a specific estate or to begin probate, consult a licensed Oregon attorney experienced in probate and estate law.