Detailed answer

Short answer: Under Alaska law, money remaining from a sale that belonged to someone who died without a will becomes part of that person’s probate estate unless the funds pass automatically to someone else by operation of law (for example, joint ownership with right of survivorship, a payable‑on‑death designation, or an insurance/retirement beneficiary). The court-supervised personal representative (administrator) collects estate assets, pays valid debts and expenses, and then distributes the remainder to heirs according to Alaska’s intestate succession rules.

How this works in practice:

• Is the money part of the estate? If the decedent owned the sale proceeds in their name alone when they died, the funds are estate property. If the funds were in a joint account with right of survivorship, or held in a pay‑on‑death (POD) or transfer‑on‑death (TOD) account, or paid to a named beneficiary (life insurance, retirement account), those funds usually pass to the co-owner or beneficiary outside probate.
• Who manages the estate? When someone dies intestate (without a valid will), interested persons petition the Superior Court to appoint an administrator. That administrator has authority to collect assets (including sale proceeds), pay bills and taxes, and distribute what remains.
• Creditor claims and expenses come first. The administrator must identify and notify creditors, pay valid claims, and pay estate administration costs (funeral, attorney fees, court costs). Only then can distributions to heirs occur.
• Intestate distribution. After valid debts and costs, Alaska’s intestacy rules determine who gets the remainder. These rules are in Alaska’s probate statutes (see Title 13 of the Alaska Statutes) and generally prioritize spouse and children, then parents, siblings, more distant relatives, and finally the state if there are no heirs.
• If the proceeds are still in escrow or with a third party. If funds from a pending sale remain in escrow after the seller’s death, the escrow agent typically will not release the money without (a) written instructions from the personal representative, (b) a small‑estate affidavit if that procedure applies, or (c) a court order. Contacting the escrow company and the court early helps prevent delay.
• Small estates and simplified procedures. Alaska provides procedures that may allow heirs to collect modest estates without full probate. Whether those apply depends on the total estate value and statutory thresholds. If the estate qualifies, a small‑estate affidavit or summary proceeding can speed release of funds without full administration.

Where to find the law: Alaska’s probate and intestacy rules are in Title 13 of the Alaska Statutes. For the statutory text and chapter headings, see the Alaska Legislature’s statutes site: https://www.akleg.gov/basis/statutes.asp#13. For practical probate forms and court guidance, see the Alaska Court System: https://www.courts.alaska.gov/ (search the probate section).

Common scenarios and outcomes

These examples show typical outcomes under Alaska practice (hypothetical facts):

• Single owner, proceeds in bank account: The funds become estate property. The administrator collects them, pays liabilities, and distributes the balance to heirs under intestacy.
• Joint tenant with right of survivorship: The surviving joint owner usually owns the funds automatically and no probate is required for that asset.
• POD/TOD account or named beneficiary: The named beneficiary receives the funds outside probate when they make a claim with the account holder.
• Sale closed but funds held by escrow: The escrow company will require proper legal authority (personal representative, small‑estate affidavit, or court order) before releasing funds.

Practical steps for heirs or potential administrators

1. Locate documents: bank statements, sale/closing paperwork, account beneficiary designations, title/escrow paperwork, and any financial records.
2. Check ownership and beneficiary designations: Confirm whether funds pass outside probate (joint ownership, POD/TOD, life insurance, retirement accounts).
3. Contact the escrow agent or holder of funds: Ask what documentation they require to release money after the owner’s death.
4. Consider small‑estate procedures: If the estate value is low, a simplified process may allow quicker access without full probate.
5. If necessary, open probate: Petition the Alaska Superior Court to appoint an administrator to collect assets, pay debts, and distribute the estate.
6. Get legal help: Consult a probate attorney to understand deadlines, creditor notice requirements, and distribution rules under Alaska law.

Helpful hints

• Don’t assume all funds require probate. Check for survivorship or beneficiary designations first.
• Act quickly on escrow or closing funds. Timely contact to the escrow agent prevents delays and returns of funds to the title company.
• Preserve account and closing papers. Those documents speed claims and prove ownership at death.
• Document communications with banks, escrow agents, and potential creditors. Keep written records and get receipts for submitted documents.
• Ask about small‑estate procedures early. They can save time and cost if the estate qualifies.
• Be cautious about informal distributions. Distributing funds before legal authority can expose you to personal liability if creditors later make valid claims.