Short answer

If your dad’s house is being sold, the exact destination of the sale proceeds depends on who owns the house, whether it’s subject to a mortgage or liens, whether the house is part of a probate estate, and whether a will or trust controls the property. The clearest place to see the distribution is the closing/settlement statement prepared by the title company or closing agent. If the sale happens as part of an estate administration, the personal representative’s accounting and the chancery court orders will explain how proceeds are applied and distributed.

Detailed answer — step by step

1) Identify how title to the house is held

Ownership controls what happens to proceeds:

• If the house was owned jointly with rights of survivorship (e.g., joint tenancy with another person), ownership usually passes automatically to the surviving co-owner. Proceeds from a sale by that co-owner typically belong to the surviving owner after paying mortgages and liens.
• If the house was owned solely in your dad’s name at his death, the house likely becomes part of his probate estate unless a trust or a payable-on-death / transfer-on-death mechanism applied.
• If the house was in a living trust, the successor trustee should handle sale and distribution under the trust terms, outside probate.

2) Determine whether the property is in probate or transfers outside probate

Probate (estate administration) changes the procedure. In Mississippi, probate is handled in chancery court. If the property is in probate, the personal representative (executor or administrator) has duty to pay estate debts first, then distribute the remainder under the will or under intestacy rules. You can check chancery court records where the decedent lived to see filings and orders. For general information about Mississippi probate process, see the Mississippi Judiciary site: https://courts.ms.gov, and for state statutes consult the Mississippi Legislature site: https://www.legislature.ms.gov.

3) Understand how liens, mortgages, taxes, and closing costs get paid

At closing, the settlement statement (often called a Closing Disclosure or an itemized settlement statement from the title company) shows the exact payees and amounts. Typical priority of payments from sale proceeds:

1. Payoff of any outstanding mortgages or deeds of trust secured by the property (paid directly to the lender at closing).
2. Payment of property taxes and any tax liens or recorded liens (county tax liens, IRS liens, mechanics’ liens, etc.).
3. Closing costs and fees — title insurance, escrow or title company fees, recording fees, and real estate broker commissions.
4. Costs of the estate administration (if in probate) — court costs, attorney fees approved by the court, and funeral expenses or expenses of last illness that the estate must pay.
5. After debts and allowable expenses are paid, the net proceeds are distributed to the estate or to the named beneficiaries/owners per the title and governing documents.

4) If the house is sold by the personal representative during probate

The personal representative must follow chancery court authority and applicable Mississippi probate law. The sale proceeds become estate assets. The representative pays valid estate debts and then distributes the remainder under the will or intestacy rules. If beneficiaries dispute the accounting or distribution, they can ask the chancery court for an accounting or to enforce their rights. You can review filings and orders at the local chancery court in the county where your dad lived; chancery court records will show the administrator’s reports and distributions. See general information at the Mississippi courts site: https://courts.ms.gov.

5) If the house was sold while your dad was alive, or sold by a private owner after transfer

If the sale occurred before probate (for example, sale while alive or by surviving joint owner), you should ask the closing or title company for the settlement statement. That statement lists each disbursement and shows exactly who received the money and why.

6) How to obtain the documents that show where proceeds went

• Request the closing settlement statement from the title company or closing agent — it is the most detailed breakdown of payees.
• Ask the mortgage lender for the payoff statement(s).
• Search county land records and the recorder’s office to see recorded liens and satisfactions.
• If the house is part of a probate case, obtain the personal representative’s account or the court-ordered distribution from the chancery court file.
• If the property was in a trust, request the trust accounting from the successor trustee.

7) Common scenarios with short examples

Scenario A — Mortgage & probate: Dad owned house outright but left a will naming an executor. The executor sells the house during probate. At closing the title company pays off the mortgage balance, pays commissions and closing fees, pays any county property taxes, and then the remainder goes into the estate’s bank account. The executor later distributes the net to beneficiaries after paying estate debts and getting court approval if required.

Scenario B — Joint ownership: Dad held title with his spouse as joint owners with right of survivorship. After his death the property belonged to the surviving spouse; if that spouse sells, proceeds generally belong to the surviving spouse after paying liens and closing costs.

Scenario C — Trust: Dad placed the house in a revocable living trust with a successor trustee. The successor trustee sells the house and distributes proceeds according to the trust. Trust administration typically occurs outside chancery court probate (unless contested).

8) If you suspect mismanagement or improper distribution

If a personal representative, trustee, or surviving co-owner will not provide documentation or you suspect funds were misapplied, you may:

• Request a formal accounting from the personal representative or trustee.
• File a petition in the chancery court asking the court to compel an accounting or to review the representative’s actions (if the estate is in probate).
• Seek an attorney to advise about possible removal of the personal representative or other remedies.

Chancery courts hear probate disputes in Mississippi. For contact and process information, see the state judiciary site: https://courts.ms.gov, and for statutory guidance consult the Mississippi Legislature site: https://www.legislature.ms.gov.

Helpful hints

• Ask for the closing/settlement statement first — it shows every dollar paid at closing and to whom.
• Locate the deed and title report to check how the property was titled the day before the sale.
• Check county recorder and tax assessor records for recorded liens and tax status.
• If the house is in probate, get copies of the probate petition, letters of administration/executor, and any court orders. Those will show who has authority and what the court has approved.
• Keep records. Save copies of payoff statements, closing documents, and communications with the personal representative or title company.
• If someone refuses to share the closing statement, a written request from an interested person (beneficiary, heir, co-owner) may prompt disclosure; if not, you can ask the chancery court to compel an accounting.
• Remember secured creditors (mortgage lenders, tax authorities) are usually paid first from sale proceeds.
• Understand that distribution may require court approval when a probate estate is large, contested, or when the decedent’s will limits the personal representative’s powers.