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Detailed answer — how leftover sale proceeds are handled

1) Determine who technically owns the sale proceeds.

• If the proceeds were deposited into an account owned solely in the decedent’s name, they are probate assets and become part of the estate.
• If the proceeds were paid to a joint account with right of survivorship, a pay‑on‑death (POD) or transfer‑on‑death (TOD) beneficiary, or were titled in a living trust, the money typically passes outside probate to the surviving owner or beneficiary.

2) If the funds are probate property, someone must open an estate case (probate) or use a simplified procedure before the funds can be released.

• A personal representative (previously called an executor) is appointed by the court. That person collects estate assets, including sale proceeds.
• The personal representative uses estate funds to pay funeral costs, administrative expenses, creditors’ claims, and any taxes owed.
• After debts and expenses are paid, the personal representative distributes the remainder following Washington’s intestacy rules (see Title 11 of the RCW).

3) How distribution works under intestacy (no will).

Washington law provides a statutory order of who inherits when there is no will. Whether a surviving spouse, children, parents, siblings, or more remote relatives inherit depends on family relationships and the classification of the property (community property vs. separate property). Those rules are set out in Washington’s probate statutes; the court will apply them to determine who receives the remaining sale proceeds.

4) Short or simplified procedures.

Washington provides simplified procedures for smaller estates or for certain circumstances where full formal probate is unnecessary. If the estate qualifies, a small estate affidavit or a summary administration may allow transfer of personal property (including sale proceeds) without full probate. The local superior court clerk or Washington Courts forms page lists available forms and eligibility rules.

5) Practical implications at a real estate closing.

If a property sale closes after the owner’s death, the closing agent and title company will look to the deed, title insurance, beneficiary designations, and any letters testamentary before releasing funds. If the decedent owned the property solely and there is no nonprobate transfer vehicle, the closing agent will typically require probate authorization or a small‑estate affidavit before disbursing net proceeds to heirs.

6) Example (hypothetical, simplified):

After a sole owner dies intestate and a house sells, the net proceeds go into the estate. The appointed personal representative files probate papers, pays funeral and allowable creditor claims, and then follows intestacy rules to distribute the remainder to heirs. If the proceeds had been paid into a joint account with a survivor named, the surviving co‑owner would generally receive the funds immediately without probate.

Relevant statute collection: Washington’s probate and intestacy laws are in Title 11 of the Revised Code of Washington (RCW). For the statutes that govern how estates are administered and how intestate distributions are made, see: RCW Title 11 — Probate.

Step‑by‑step checklist (what to do if you find leftover sale proceeds after someone dies)

1. Confirm ownership of the funds: check the payee name, account title, and any beneficiary or joint‑owner designations.
2. Notify the closing agent, bank, or title company that the owner is deceased and provide a death certificate if requested.
3. Talk with the county superior court probate clerk about whether a full probate, summary administration, or small estate affidavit will allow release of the funds.
4. If probate is required, file for appointment of a personal representative so the estate can legally collect and distribute the proceeds.
5. Keep records: bank statements, closing statements, receipts for funeral and estate expenses, and all creditor correspondence.
6. Before distributing any proceeds, make sure creditor claims and taxes are handled to avoid personal liability.

Helpful hints

• Do not assume money that appears to be “leftover” automatically belongs to you. Confirm ownership and title.
• If the estate is small, ask the probate clerk about simplified processes. These can save time and expense.
• Keep a certified copy of the death certificate available; many institutions require it.
• If there is a surviving spouse or close family, determine whether community property rules apply. Washington is a community‑property state, and that affects distribution.
• If a beneficiary or joint owner is named, that usually — but not always — controls who receives the funds. Documentation matters.
• When in doubt, consult a probate attorney. Small mistakes in probate or distributions can create personal liability for the person who distributes funds incorrectly.