Detailed answer
If a person dies without a will in Wisconsin, any cash that represents leftover sale proceeds becomes part of the decedent’s probate estate. The estate’s personal representative (sometimes called an administrator when there is no will) collects assets, pays valid debts and expenses, and then distributes what remains to the person’s heirs under Wisconsin’s intestacy rules.
Key steps that typically occur:
- Identification and collection of assets: Sale proceeds in bank accounts, escrow, or held by a third party must be identified and gathered by the personal representative.
- Payment of debts and expenses: The personal representative pays funeral costs, taxes, secured creditors, and other valid claims against the estate before distributing any remaining funds.
- Estate administration: If the estate must go through probate, the court supervises appointment of the personal representative and the administration process. In some cases, simplified or small‑estate procedures may apply and avoid full probate.
- Distribution under intestacy: After debts and administration costs, the remaining funds are distributed according to Wisconsin’s intestacy laws. Those laws determine which relatives inherit and in what order (for example, a surviving spouse, children, parents, siblings, etc.). You can read Wisconsin’s intestacy statute chapter here: https://docs.legis.wisconsin.gov/statutes/statutes/852
- No heirs or unknown heirs: If no lawful heirs exist or cannot be located, the remaining property may ultimately transfer to the State of Wisconsin under escheat rules (see Wisconsin statutes on escheat/estate disposition).
Whether the sale proceeds go through full probate depends on the size and nature of the estate. Wisconsin has procedures for smaller estates or certain transfers outside probate (for example, survivorship accounts, payable‑on‑death designations, or transfer on death arrangements). See the statutes and court guidance on estate administration here: https://docs.legis.wisconsin.gov/statutes/statutes/859
Practical example (hypothetical): A decedent sold a house and left $25,000 in a bank account at death. The personal representative will collect that cash as part of the estate, confirm and pay any valid creditors or taxes, and then distribute the remaining amount according to Wisconsin’s intestacy rules. If the decedent is survived by a spouse and children, the statutes dictate how much each inherits; if no close relatives exist, the estate may eventually escheat to the state.
Because the precise distribution can turn on family relationships, existing joint ownership or beneficiary designations, and whether small‑estate procedures apply, the practical result can vary. For the statutory framework and details about administration, see Wisconsin statutes, chapters on intestate succession and estate administration: Wis. Stat. ch. 852 (Intestate Succession) and Wis. Stat. ch. 859 (Administration).
Disclaimer: This is an informational overview, not legal advice. For advice about a specific situation, contact a licensed Wisconsin attorney.
Helpful hints
- Do not distribute funds immediately. Confirm that debts, taxes, and valid claims are paid or resolved before distributing proceeds to heirs.
- Locate important documents: bank statements, sale closing papers, deeds, beneficiary designations, and any prior wills or trust documents.
- Check account ownership and beneficiary designations. Payable‑on‑death or joint‑owner arrangements can transfer outside probate and change who receives sale proceeds.
- Consider whether the estate qualifies for simplified or small‑estate procedures under Wisconsin law to avoid full probate. Review the administration statutes: https://docs.legis.wisconsin.gov/statutes/statutes/859
- If you are the potential personal representative or an heir, file necessary paperwork promptly with the probate court to preserve rights and comply with creditor‑claim deadlines.
- If no heirs are known, the court and state officials have procedures for locating heirs; if none are found, funds may escheat to the state.
- When in doubt, get a probate or estate attorney. An attorney can confirm whether probate is required, help locate heirs, file the correct documents with the court, and ensure distributions comply with Wis. law.