Detailed Answer
If a house owned by your father has been sold (or is about to be sold), you likely want to know who is entitled to the sale proceeds and in what order creditors and heirs get paid. Under Wisconsin practice, the answer depends on who actually owned the house at the time of death, whether there is a will or trust, whether the house was sold inside or outside probate, and whether any mortgages, liens, taxes, or claims must be paid first.
1. Identify how the property was titled
Title determines whether the house (and its sale proceeds) passes automatically to someone else or becomes part of your father’s estate:
- Sole ownership: If the deed lists only your father, the house is usually part of his probate estate and sale proceeds belong to the estate until the personal representative (executor/administrator) pays debts and distributes the remainder under the will or Wisconsin intestacy law.
- Joint ownership with right of survivorship: If the deed names another person as a joint tenant with right of survivorship (e.g., a spouse or child, depending on the deed language), ownership typically passes directly to the surviving co-owner outside probate. In that case, proceeds from a sale by the surviving co-owner generally belong to that survivor, not to the probate estate.
- Tenancy in common: If title is tenants in common, each owner has an individual share that does not automatically pass to the other owners at death. Your father’s share would go through probate.
- Trust ownership: If the house was titled in a revocable trust, the trustee follows the trust terms and distributes trust funds to named beneficiaries without probate (or with limited court involvement).
2. Check the deed and public records
Get a copy of the deed and run a title search through the county Register of Deeds for the county where the property sits. The public record will show:
- how title was held (owner names and wording)
- mortgages, deeds of trust, or other secured loans
- judgment liens, tax liens, or recorded claims against the property
Contact your county’s Register of Deeds office or use the Wisconsin Circuit Court Access (WCCA) to search for recorded documents and for any probate case: https://wcca.wicourts.gov/. For general probate information from the Wisconsin courts: https://www.wicourts.gov/services/public/probate.htm.
3. If the house is part of probate, how proceeds are handled
When the property is part of a probate estate (owner held title individually at death and not in a trust or survivorship arrangement), the typical sequence is:
- The personal representative (executor or administrator) collects estate assets, which may include the house and its sale proceeds once sold.
- Creditors’ claims and secured debts are paid first out of estate assets or from sale proceeds (for example, mortgage payoffs and property tax liens). Secured creditors are generally paid from the collateral (the home) or from sale proceeds.
- Administrative expenses follow (funeral costs, costs of administration, attorney and personal representative fees, court costs).
- Valid unsecured creditor claims are then paid to the extent estate assets remain.
- Any remaining balance is distributed to the beneficiaries under the will or, if there is no will, to heirs according to Wisconsin intestacy rules.
In short: sale proceeds usually go first to pay mortgages and liens, then to pay estate administrative costs and claims, and finally to beneficiaries or heirs.
4. If a trust owned the house
If the house was owned by a revocable trust, the trustee manages sale and distribution according to the trust document. Proceeds would be paid out per the trust’s terms: pay debts and expenses first (as the trust directs), then distribute to named beneficiaries. Trust administration generally avoids probate.
5. How to find exactly where the proceeds will go — practical steps
Follow these steps to get a clear answer in your situation:
- Obtain a certified copy of your father’s death certificate (needed by title companies, banks, and the court).
- Get a copy of the deed from the county Register of Deeds to confirm how title was held.
- Search recorded liens and mortgages at the Register of Deeds and check for federal or state tax liens through appropriate agencies.
- Look for a will or trust document. If you don’t know where these might be, check with close family, attorneys your father used, or his safe deposit box (if you have authority to access it).
- Check whether a probate case has been opened in the county where your father lived. Use the Wisconsin Circuit Court Access (WCCA) public search: https://wcca.wicourts.gov/. If a personal representative was appointed, that person handles estate funds and must account for them.
- Ask the personal representative or trustee for a written accounting. Beneficiaries have the right to information about estate assets and distributions; a court can compel an accounting if necessary.
- Obtain a title report or hire a title company or real estate attorney to run a thorough title search and produce a payoff demand for any mortgage(s). The payoff statements show how much must be paid from sale proceeds to clear title.
- If you’re a beneficiary and suspect improper handling, you may request a court order (through the probate court) to require an accounting or to contest distributions. The county Register in Probate can explain local filing steps and forms.
6. Common complications
- Undiscovered liens or creditor claims can reduce the net proceeds available to heirs.
- Disputes among heirs about whether the property should have been sold or how proceeds were used can lead to court proceedings.
- Title problems may delay sale or require additional legal action to clear title before proceeds can be distributed.
7. Where to get authoritative state resources
- Wisconsin Courts probate information: https://www.wicourts.gov/services/public/probate.htm
- Search circuit court records / probate cases (WCCA): https://wcca.wicourts.gov/
- Wisconsin statutes and code (general index): https://docs.legis.wisconsin.gov/statutes
Final point — when to involve a lawyer
If you want a precise legal ruling about entitlement to proceeds (especially when title is unclear, liens exist, beneficiaries dispute the distribution, or the personal representative refuses to provide an accounting), consult a Wisconsin probate or estate attorney. An attorney can:
- Review title documents, the will or trust, and any recorded liens;
- Request or obtain formal accountings and file motions in probate court if needed;
- Represent you in disputes over creditor claims or distributions.
Disclaimer
This article explains general principles about how sale proceeds from a decedent’s house are treated under Wisconsin practice. It does not provide legal advice and does not create an attorney-client relationship. For advice specific to your situation, consult a licensed Wisconsin attorney.