Detailed answer
This explains, under Arkansas law, what typically happens to money left over after a deceased person’s home is sold and debts are paid. This is a general explanation based on typical facts. It does not replace consulting a licensed Arkansas attorney about a specific situation.
Who controls the sale and the proceeds?
When a person dies, someone must collect their assets, pay valid debts, and distribute what remains. If the decedent left a will, the person named as executor (sometimes called a personal representative) is the one who opens probate and handles those tasks. If there is no will, the court will appoint an administrator. The estate administration process in Arkansas is governed by laws in Arkansas Code Title 28 (Wills, Estates, and Fiduciaries). For general official information see the Arkansas Legislature: https://www.arkleg.state.ar.us/ and Arkansas Courts’ information on probate procedures: https://www.arcourts.gov/.
Is the sale part of the probate estate?
It depends on how title to the house was held before death:
- If the house was owned solely in your dad’s name and there are no non‑probate mechanisms attached (no joint tenancy with right of survivorship, no transfer‑on‑death deed, no living trust holding title), the home is probably part of your dad’s probate estate. In that case the executor can sell the home during administration, pay debts and expenses, and any leftover proceeds become estate assets to be distributed according to the will (or under Arkansas intestacy law if there is no valid will).
- If the house passed outside probate — for example, it was held jointly with right of survivorship, had a valid beneficiary deed or payable‑on‑death designation, or was owned by a living trust — the property belongs to the surviving owner or trust and is not a probate asset. Proceeds from a sale by the surviving joint owner or trustee would not be distributed under the decedent’s will.
What happens after the sale if the home is a probate asset?
When the executor sells the home as part of probate, the money received is treated like any other estate asset. The usual order is:
- Pay funeral and administration expenses (advertising, court costs, attorney and executor fees).
- Pay debts and valid creditor claims against the estate.
- Resolve any tax obligations (estate taxes, income taxes of the decedent, final returns).
- Distribute the remainder (“residue”) to beneficiaries named in the will or, if there is no will or the will does not fully dispose of the residue, under Arkansas intestacy rules.
If the will names beneficiaries (for example, distributes the residue to a child), leftover sale proceeds that are part of the estate will generally be distributed under the will’s terms once all debts and expenses are paid.
Things that can change the result
- Liens and mortgages: outstanding mortgages or liens attach to the property and must be paid from sale proceeds before distributions to beneficiaries.
- Surviving spouse protections: Arkansas law gives certain protections to a surviving spouse (for example, homestead or allowances). Those rights can reduce what passes under the will. See Arkansas Code Title 28 for details: https://www.arkleg.state.ar.us/.
- Creditor claims: creditors have a limited time and procedure to file claims against the estate; valid claims must be paid before distributions.
- Non‑probate transfers: if some funds or property pass outside probate (joint ownership, beneficiary designations, trust distributions), those funds are not controlled by the will.
- Disputes and litigation: if someone contests the will or objects to the accounting, distributions can be delayed while the court resolves the dispute.
What you should do now
If you want to know whether leftover proceeds from a sale will go to beneficiaries named in your dad’s will, take these steps:
- Ask for a copy of the deed and the will. The deed shows how title was held. The will shows what your father intended and who the executor is.
- Ask the executor (or the person selling the house) for an accounting or explanation of how sale proceeds will be handled and the order of payments.
- Check whether there is a trust or beneficiary deed that might pass the house outside probate.
- If you suspect rights of a surviving spouse or other statutory protections are involved, consult an Arkansas probate attorney. The attorney can review the will, deed, and facts and make sure distributions follow Arkansas law (Ark. Code Ann. Title 28 and related rules).
Where the money usually goes — simple hypotheticals
Hypothetical A (probate asset): Dad owned the house alone, left a will naming an executor and leaving his residuary estate to you. The executor sells the home during probate, pays debts and expenses, and the leftover proceeds become part of the residuary estate and are distributed to you as the beneficiary under the will.
Hypothetical B (non‑probate transfer): The house was owned jointly with mom as joint tenants with right of survivorship. When dad died, title passed automatically to mom outside of probate. If mom later sells the house and pays debts, those sale proceeds are hers (or hers and the joint owner’s) and are not controlled by dad’s will.
Bottom line: If the home is a probate asset, leftover sale proceeds after paying valid debts and expenses generally become part of the probate estate and will be distributed according to your father’s will (subject to spouse protections, liens, and creditor claims). If the property passed outside probate, sale proceeds are not distributed under the will.
Not legal advice: This is informational only and not legal advice. For advice about a specific estate, deed, or dispute, contact a licensed Arkansas attorney who handles probate and estate matters.
Helpful hints
- Get copies of the deed, will, and any trust documents to determine whether the property is a probate asset.
- Ask the executor for a written accounting of sale proceeds, debts paid, and planned distributions.
- Check county property records online to see current title and any recorded liens.
- Remember that mortgage lenders and other lienholders are paid from sale proceeds before beneficiaries receive anything.
- Be aware of surviving spouse protections and homestead rules under Arkansas law that can affect distribution; review Arkansas Code Title 28 for statutory language: https://www.arkleg.state.ar.us/.
- If you believe the property passed outside probate (joint tenancy, beneficiary deed, trust), ask for proof (recorded beneficiary deed, trust instrument, or survivorship language on the deed).
- If distributions are delayed or you suspect wrongdoing, consult a probate attorney promptly — delays can limit your ability to protect rights or challenge errors.
- When contacting an attorney, bring the death certificate, will, deed, mortgage statements, and any communications from the executor or estate attorney.