Understanding how an executor should calculate your percentage share of a sibling’s house sale under Michigan law

Quick disclaimer: This is general information, not legal advice. I am not a lawyer. For advice about your situation, consult a licensed Michigan probate attorney.

Detailed answer

When a sibling’s home is sold during probate in Michigan, the executor (legally called the personal representative) must collect the sale proceeds, pay debts and valid charges against the estate, and then distribute the remainder to beneficiaries according to the will or Michigan’s rules of intestacy if there is no will. To confirm the executor’s calculation, you need to understand what gets deducted from the gross sale price and how your share is determined.

1. Who decides the distribution?

The decedent’s will (if there is one) controls distribution. If there is no will, Michigan’s Estates and Protected Individuals Code (EPIC) governs intestate succession (see MCL 700.1101 et seq.). For the exact statutory text, see the Michigan Legislature website: MCL 700.1101 et seq. (EPIC) and the Michigan Courts site for probate information: courts.michigan.gov.

2. Items normally deducted from the house sale price before distribution

The executor typically deducts these items from the gross sale proceeds to arrive at the net proceeds available for distribution:

• Mortgage(s) or other liens that must be paid at closing (payoff statements).
• Real estate commission.
• Closing costs attributable to the seller (title, transfer taxes, recording fees, prorated property taxes, homeowner association assessments, escrow holdbacks, repairs required by the buyer, etc.).
• Estate administration expenses related to the sale (reasonable attorney fees, probate court fees, appraisal fees, advertising/marketing for sale, repair invoices if the estate paid for repairs to effect sale).
• Valid creditor claims against the estate that the personal representative pays from estate funds rather than other assets.

After paying these costs, the executor should add the remaining net proceeds to the estate’s other assets and then distribute according to the will or intestate rules.

3. How your percentage share is determined

There are two common scenarios:

• If the will specifies a share (for example, “50% to my brother, 50% to my sister” or “split equally among my children”), your share comes from the estate’s distributable net assets in the proportions the will specifies.
• If there is no will, Michigan’s intestacy rules set the shares. Who inherits and what percentage depends on which relatives survive the decedent (spouse, children, parents, siblings). The EPIC sets those rules; see the statutes referenced above.

4. How to check the math — step by step

Ask the executor (personal representative) for the following documents and use them to check the calculation:

1. Purchase closing statement / Closing Disclosure or HUD‑1 (seller side) showing gross sale price, commissions, closing costs, and net proceeds.
2. Mortgage and lien payoff statements and copies of checks or statements showing lien satisfaction.
3. Receipts or invoices for repairs, staging, or other sale-related expenses paid by the estate.
4. Copies of any estate-level bills paid from the sale proceeds (attorney fees, probate costs, appraisal fees).
5. The estate inventory and appraisement and any interim accounting the executor has prepared.
6. The will (if any) showing the distribution plan, or documentation explaining intestacy outcome.

Basic math you should perform:

• Start with the gross sale price.
• Subtract commissions and seller closing costs shown on the closing statement.
• Subtract mortgage/lien payoffs and any required tax prorations.
• The remainder is net proceeds from the sale that go into the estate.
• Add or subtract other estate receipts/expenses so you know total distributable assets.
• Apply the will’s percentages or intestacy fractions to the total distributable estate (or to the residue, depending on the will’s terms) to calculate your share.

5. Example (hypothetical) calculation

Hypothetical facts: House sold for $250,000. Realtor commission $15,000. Seller closing costs and prorations $3,000. Mortgage payoff $120,000. Repairs paid by estate $2,000. Estate attorney and probate fees charged against the estate $5,000.

Calculation:

• Gross sale price: $250,000
• Less commission $15,000 = 235,000
• Less seller closing costs and prorations $3,000 = 232,000
• Less mortgage payoff $120,000 = 112,000
• Less repairs $2,000 = 110,000
• Net sale proceeds added to estate = $110,000
• Less probate/attorney fees paid from estate $5,000 = distributable estate amount from this asset = $105,000
• If you are entitled to 50%, your share = $52,500

6. If numbers don’t match or you suspect an error

Start by requesting an explanation in writing. If the executor cannot or will not provide clear documentation:

• Ask the executor for a formal accounting. Under Michigan law, beneficiaries are entitled to information and can seek a court‑ordered accounting if necessary.
• If the estate is independently administered and the executor resists, you can petition the probate court to compel an accounting or to review the executor’s conduct. The Michigan Courts website explains probate filings and forms: courts.michigan.gov.
• If you suspect misappropriation or breach of fiduciary duty, you may ask the court to surcharge (monetarily hold the executor liable), remove the executor, or take other remedies available under the EPIC.

7. Time limits

There are deadlines for filing claims and for bringing certain actions in probate. If you think something is wrong, act promptly. Ask the executor for accountings early rather than waiting until distributions are complete.

Helpful Hints

• Always request the seller-side closing statement (Closing Disclosure/HUD-1). It shows exactly what was paid and from what account.
• Ask for written copies of lien payoff statements so you can verify mortgage payoffs match the amounts deducted.
• Keep a running worksheet (spreadsheet) with gross sale price, each deduction, and the resulting net proceeds; compare it to the executor’s accounting line by line.
• If the decedent owned the home in joint tenancy or had a transfer-on-death designation, the property may have passed outside probate — ask how title was held before assuming probate distribution rules apply.
• Document all requests you make to the executor in writing (email is fine). Copies help if you need to file a petition in probate court later.
• Consider a short consultation with a Michigan probate attorney to review the accounting and advise whether to request a formal court accounting or take other action. A lawyer can explain specific statutes and deadlines applicable to your case.

For general reference on Michigan probate law, see the Estates and Protected Individuals Code (EPIC) at the Michigan Legislature: MCL 700.1101 et seq.. For probate procedures and forms, see the Michigan Courts site: courts.michigan.gov.

Final note: Executors are fiduciaries and must act in the estate beneficiaries’ best interests. If you suspect improper deductions or distributions, collect the documents listed above and talk with a probate attorney about next steps.