Detailed Answer

Short answer: it depends on who owned the home at the time of the sale or at your parent’s death. Under Colorado law, money left after paying loans and bills will go to whoever legally owns the proceeds. If the proceeds are part of your dad’s probate estate, his will controls distribution. If the money belongs to someone else (for example, the surviving joint owner), the will does not control it.

Key ownership scenarios (hypothetical examples)

• House owned solely by your dad at his death. If the executor (personal representative) sells the house to pay debts or to administer the estate, any sale proceeds left after paying valid claims, funeral and administration costs, and taxes generally become estate assets and are distributed under the will. The executor must follow Colorado probate rules when paying creditors and distributing assets. See Colorado probate law (Title 15) for the statutes and rules that govern administration: Title 15, Colorado Revised Statutes.
• House owned by your parents as joint tenants with rights of survivorship. If the deed names both parents as joint tenants (or other survivorship ownership), when one parent dies the property typically vests automatically in the surviving owner. The property — and any proceeds from a later sale by the survivor — does not pass through the deceased parent’s will or probate. (That means the will generally does not control any surplus from that sale.) See the Colorado Courts overview of probate and non-probate transfers: Colorado Courts — Probate.
• House owned as tenants in common (no survivorship right). Each owner has a distinct share. If your dad owned a fractional share and he died, his share becomes part of his probate estate and will be distributed under his will (or by intestacy if he left no valid will). A sale that converts that share into cash for the estate will be handled through probate.
• House sold while both parents were alive. If the home was sold and the title and proceeds were distributed or deposited before your dad’s death, then the money may no longer be part of his estate. Who receives the proceeds depends on how the sale papers and checks were handled (joint or individual bank accounts, who signed the sales documents, etc.).

Who gets paid first before beneficiaries receive anything?

When property is part of a decedent’s probate estate, Colorado law requires that valid creditor claims, funeral expenses, administration costs, and certain taxes be paid before any distributions to beneficiaries under a will. That means beneficiaries receive any remainder only after the estate’s obligations are satisfied. The personal representative has a legal duty to follow the statutory order of payment during administration. For practical guidance on probate steps and creditor claims, see: Colorado Courts — Probate and Title 15 of the Colorado Revised Statutes: Title 15.

Practical points to check right away

• Check the deed to see how the property was titled (sole owner, joint tenants with rights of survivorship, tenants in common).
• Find out when the sale occurred relative to your dad’s death and who signed the closing documents and received proceeds.
• Ask whether the seller used the proceeds to pay joint debts (like a joint mortgage) or whether the proceeds went into an account in the surviving spouse’s name.
• If the executor handled the sale during probate administration, request an estate accounting to see how proceeds and debts were applied and what (if any) remains to be distributed under the will.

Simple examples to illustrate distribution

1. If Dad owned the house alone, the executor sells it for $300,000, pays $50,000 in mortgages and $20,000 in valid creditor claims and expenses, the remaining $230,000 is estate money and would be distributed under the will.
2. If Mom and Dad owned the house as joint tenants and Mom survives, the house becomes Mom’s property outside probate. If she later sells and pays off the mortgage, the leftover money belongs to Mom — not to heirs under Dad’s will.
3. If the house sale happened before Dad died and the net proceeds were put into Mom’s personal bank account, those proceeds are likely Mom’s separate property (unless evidence shows otherwise) and not controlled by Dad’s will.

When you should consider an attorney

Talk with an estate or probate attorney if you suspect the sale or distribution was improper, if you cannot determine ownership from the deed or closing papers, or if beneficiaries are disputing distributions. An attorney can review deeds, closing statements, the will, and any estate accounting to determine whether distributions followed Colorado law.

Resources

• Colorado Revised Statutes, Title 15 (Probate, Trusts, and Fiduciaries): https://leg.colorado.gov/content/title-15-probate-trusts-and-fiduciaries
• Colorado Courts — Probate information and self-help resources: https://www.courts.state.co.us/Self_Help/Probate/Probate.cfm

Disclaimer: I am not a lawyer and this is not legal advice. This article explains general principles of Colorado law to help you understand likely outcomes. For advice about a specific situation, consult a licensed Colorado attorney.

Helpful Hints

• Start by pulling the property deed at the county clerk’s office or online to confirm title type (sole owner, joint tenants, tenants in common).
• Get a copy of the closing statement (HUD-1 or Closing Disclosure) from the sale — it shows who received the proceeds and what debts were paid.
• Ask the executor or personal representative for an estate accounting if probate is open. That accounting should show sale proceeds and distributions.
• If you are a beneficiary and believe estate assets were mishandled, ask for written explanations. If unsatisfied, an attorney can advise about filing objections with the probate court.
• Keep copies of the will, death certificate, deed, closing documents, mortgage payoff statements, and any bank statements showing deposits from the sale — these documents resolve most disputes quickly.
• If both parents were on the mortgage but the title showed survivorship, consult an attorney before assuming sale proceeds are part of the deceased’s estate — mortgage liability and property ownership can diverge.