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Detailed answer — what generally happens

If a person who owns money from a recent sale (for example, proceeds from the sale of real estate, a vehicle, or other property) dies without a will, those sale proceeds become part of the deceased person’s estate. Under Wyoming law, estate assets are collected and used to pay valid debts and administration costs first. Any remaining funds are then distributed to heirs according to Wyoming’s intestacy rules.

Key points:

• The sale proceeds are estate property. Even if the sale closed or the buyer paid before the seller died, the money belongs to the deceased person at death unless the seller had already validly transferred it to someone else.
• A personal representative (an executor named in a will, or an administrator appointed by the court when there is no will) controls estate assets. That representative is responsible for collecting assets (including sale proceeds), paying debts and expenses, and distributing what remains to heirs.
• If the estate has no debts or after debts are paid, Wyoming’s intestate succession rules determine who receives the leftover proceeds (commonly the surviving spouse, children, parents, or more distant relatives, depending on who survives the decedent).

For general information about Wyoming probate and statutes, see the Wyoming Legislature and Wyoming Judicial Branch websites: Wyoming Legislature (statutes) and Wyoming Judicial Branch. The statewide probate and intestacy rules are available in the Wyoming statutes and judicial resources.

Typical steps after a seller dies intestate and sale proceeds exist

1. Identify who holds the funds. If an escrow or title company holds sale proceeds, that company will typically require evidence of the decedent’s death and instructions from the personal representative or court before releasing funds.
2. Open an estate or seek appointment of an administrator. Anyone interested in the estate (often a close family member) can petition the county probate court to be appointed administrator. The administrator obtains authority from the court (letters of administration) to collect assets, pay debts, and distribute the remainder.
3. Inventory and pay debts. The administrator will inventory estate assets (including the sale proceeds), notify creditors as required, pay valid claims and administration expenses.
4. Distribute remaining funds under intestacy. After obligations are satisfied, the administrator distributes remaining proceeds to heirs according to Wyoming intestacy law.

Who inherits when there is no will (intestate succession overview)

Under Wyoming’s intestacy rules, distribution depends on which family members survive the decedent. Common patterns (generalized):

• If the decedent is survived by a spouse but no descendants, the spouse usually receives the entire intestate estate.
• If the decedent is survived by a spouse and descendants (children), distribution often depends on whether those children are also children of the surviving spouse; the estate may be divided between spouse and children.
• If there is no spouse or descendents, the estate commonly goes to parents, then more distant relatives (siblings, nieces/nephews, etc.).

These are general rules only. Exact shares depend on family relationships and Wyoming law as applied by the probate court. See Wyoming statutory and probate resources at the Wyoming Legislature and Wyoming courts sites: https://wyoleg.gov and https://www.courts.state.wy.us. (Wyoming’s probate statutes set out the statutory process for administration and intestate distribution.)

Special situations

Small estates and informal procedures: If the estate’s assets (including the sale proceeds) are small, Wyoming may permit a simplified or informal probate process or a small‑estate claim procedure that lets heirs collect funds without full probate. Whether a small‑estate process applies and how to use it depends on the size of the estate and the county court’s rules.

Funds in escrow or title company: If a title company or escrow holder holds sale proceeds, they will usually require letters testamentary or letters of administration before releasing funds. Sometimes the title company will accept a notarized affidavit or a small‑estate affidavit if permitted under Wyoming law and company policy.

Joint accounts, payable-on-death designations, or trusts: If the decedent had named a beneficiary, held the funds in a joint account with right of survivorship, or used a trust, the money may pass outside probate directly to the named beneficiary or joint owner.

Hypothetical example

Example: Jane sold her house and the title company held the $80,000 net sale proceeds in escrow. Jane died intestate before the escrow company released funds. Because the proceeds are Jane’s property at death, the escrow company will not release them until someone shows authority to receive them. A family member petitions the county probate court to be appointed administrator. The administrator obtains letters of administration, equips them to the escrow company, collects the $80,000, pays Jane’s funeral costs and any valid debts, and then distributes the remainder to heirs under Wyoming intestacy rules.

When you should get an attorney

Consider hiring a probate attorney if:

• The sale proceeds are large or the estate has multiple creditors or contested claims.
• Heirs disagree about who should get the funds.
• Title companies or banks refuse to release sale proceeds without complex documentation.
• You need help with court filings to open an estate or complete a small‑estate procedure.

Disclaimer

This information is educational only and does not constitute legal advice. I am not a lawyer. Laws vary and change. For advice specific to your situation, consult a licensed Wyoming probate attorney or the local probate court.

Helpful hints

• Preserve documents: keep the sale contract, closing statements, escrow correspondence, and any beneficiary designations handy.
• Check how the funds are held: escrow companies and banks have specific procedures; ask what documentation they require to release funds after a death.
• Act promptly: probate timelines and creditor notice periods can affect how much remains for distribution.
• Ask about small‑estate options: if the estate is modest, your county probate court may offer a simpler route to collect funds.
• Obtain letters of administration: most institutions will require court‑issued proof of authority before releasing estate funds.
• Keep clear records: administrators should track receipts, bills paid, and distributions carefully — courts often require an accounting.