The Short Answer

In most Florida probate administrations, sale proceeds are held in an estate account under the personal representative’s control until the court process allows distribution—rather than in a separate “trust” or informal escrow. If proceeds can’t be distributed (for example, a beneficiary can’t be found or refuses payment), Florida law provides a court-supervised path to deposit funds into the court registry instead of keeping them in a private escrow.

What Florida Law Says

Florida treats the personal representative as a fiduciary who must safeguard estate assets and distribute them according to the will and the Florida Probate Code. That typically means proceeds from the sale of estate property should remain under the estate’s control until debts, expenses, taxes, and any required court approvals are addressed, and until distribution is legally appropriate.

The Statute

The primary law governing this issue is Fla. Stat. § 733.816.

This statute establishes that when estate property is unclaimed and cannot be distributed (e.g., the lawful owner can’t be found, is unknown, or refuses payment after notice and a reasonable attempt), the court can order the personal representative to deposit the proceeds with the clerk for placement in the registry of the court and eventual disposition under the statute.

Related fiduciary-duty context also appears in Fla. Stat. § 733.602 (general duties; PR is a fiduciary) and Fla. Stat. § 733.603 (PR generally proceeds without court order unless the code/court requires otherwise).

Why You Should Speak with an Attorney

Holding sale proceeds “in escrow” sounds simple, but in probate it can create real risk for the personal representative—especially if someone later argues the money was mishandled, distributed too early, or kept in the wrong place. Legal outcomes often depend on:

• Strict Deadlines: Beneficiaries often want distribution quickly, but Florida law can limit when a personal representative can be compelled to distribute before the estate is ready (see Fla. Stat. § 733.802), and premature distribution can expose the estate (and PR) if debts/taxes remain.
• Burden of Proof: If a beneficiary challenges where the proceeds went, the personal representative may need to justify the decision as consistent with fiduciary duties and the estate’s best interests (see Fla. Stat. § 733.602).
• Exceptions: If proceeds are truly unclaimed or a beneficiary can’t be located, the correct solution may be a court-ordered deposit into the court registry under Fla. Stat. § 733.816—not a private escrow arrangement.

Before you set up any “trust” or escrow structure for estate sale proceeds, it’s smart to have a Florida probate attorney confirm (1) who should hold the funds, (2) what approvals are needed, and (3) how to reduce the risk of objections, surcharge claims, or delays.

If you want more background on adjacent issues, you may also find these helpful: getting an estate EIN in Florida and tax timing after selling inherited real estate in Florida.

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Disclaimer: This article provides general information under Florida law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.