Detailed Answer
If a person dies in Pennsylvania without a valid will (called dying “intestate”), any money left from the sale of their property becomes part of the decedent’s estate. The estate follows a standard legal process before anyone receives those sale proceeds. Below are the key steps and legal rules that control what happens to that money under Pennsylvania law.
1. An administrator is appointed to manage the estate
Because there is no will naming an executor, the probate court (Register of Wills and the Orphans’ Court division in each county) appoints an administrator. The administrator (sometimes called an “administrator with will annexed” or simply an “administrator” when there is no will) receives authority from the court in the form of letters of administration. The administrator has a duty to gather assets (including sale proceeds), protect them, and use them to settle the estate. For information about Pennsylvania probate procedures and administration, see Title 20 of the Pennsylvania Consolidated Statutes (Decedents, Estates and Fiduciaries): 20 Pa.C.S. (Title 20).
2. The administrator collects and secures the sale proceeds
Sale proceeds—cash from selling real estate, vehicles, personal property, or other assets—are estate assets. The administrator must collect those proceeds, deposit them in an estate account (not a personal account), and keep accurate records. The administrator uses estate funds to pay legal obligations before distributing money to heirs.
3. Debts, administration expenses, and taxes are paid first
Pennsylvania law requires the estate to pay valid claims and expenses before any distribution to heirs. That typically includes:
- Funeral and burial expenses
- Taxes (federal and Pennsylvania inheritance tax where applicable)
- Debts and creditor claims allowed by the court
- Costs of administration (attorney fees, appraisal, court costs)
The administrator must follow procedures for notifying creditors and resolving claims under the probate rules. Only after these obligations are satisfied can the remaining money be distributed to heirs.
4. Remaining funds are distributed according to intestate succession rules
After paying debts and expenses, the administrator distributes the remaining funds according to Pennsylvania’s intestacy statutes (the legal order of who inherits when there is no will). The basic rules (set out in Title 20 of the Pennsylvania Consolidated Statutes, Chapter 21) are:
- If there is a surviving spouse and no children (or if all children are also the spouse’s children), the spouse usually inherits the entire intestate estate.
- If there is a surviving spouse and children who are not all the spouse’s children, the estate is divided between the spouse and the decedent’s children according to the statutory formula.
- If there is no surviving spouse, the decedent’s children inherit the estate in equal shares.
- If there are no spouse or descendants, closer relatives such as parents, siblings, nieces and nephews inherit in a defined order.
For the exact statutory language and order of heirs, see the intestate succession provisions at 20 Pa.C.S., Chapter 21: 20 Pa.C.S. Chapter 21 (Intestate Succession). The administrator follows those rules when distributing the remaining sale proceeds.
5. What if no heirs can be found?
If the court and administrator cannot locate any heirs entitled to the estate under the intestacy rules, Pennsylvania law provides procedures for unclaimed property or escheat. In such cases, after a prescribed search and notice period, the funds may be turned over to the Commonwealth. The county Register of Wills or the Orphans’ Court can explain those procedures in the local jurisdiction.
6. Practical timing and common complications
- Administration can take months to more than a year. The administrator must wait until creditor claims and tax matters are resolved before final distribution.
- If someone disputes the appointment of the administrator, the validity of debts, or who the heirs are, distributions may be delayed while the court resolves the dispute.
- If the sale proceeds come from property held jointly or with a named beneficiary (payable-on-death accounts, joint tenancy with right of survivorship), those funds may pass outside probate. The administrator only controls assets that are part of the probate estate.
For general probate and inheritance tax information, visit the Pennsylvania Department of Revenue and the courts’ probate resources: Pennsylvania Department of Revenue and Pennsylvania Courts.
Disclaimer: This article explains general Pennsylvania probate and intestacy concepts only. It is not legal advice and does not create an attorney-client relationship. For advice about a specific estate, contact a licensed Pennsylvania probate attorney or the Register of Wills in the county where the decedent lived.
Helpful Hints
- Contact the county Register of Wills early — they can explain how to open an estate and how to obtain letters of administration.
- Keep careful records of the sale proceeds: sales contracts, closing statements, bank deposit records, and receipts for estate expenses.
- Confirm whether the asset passed outside probate (joint accounts, beneficiary designations). If so, those proceeds may not be part of the probate estate.
- Notify likely heirs and potential creditors promptly to reduce the chance of disputes and delays.
- Set up a dedicated estate bank account for probate funds — do not mix estate money with personal accounts.
- Ask the administrator to get a formal accounting before final distribution. Beneficiaries are entitled to see how the funds were handled.
- Check for possible Pennsylvania inheritance tax obligations and filing deadlines; unpaid taxes can hinder distribution.
- If someone challenges a distribution or the administrator’s actions, consult a probate attorney promptly — challenges have strict deadlines.