Detailed Answer — How Florida law treats leftover sale proceeds when a person dies intestate

When a Florida resident dies without a will (intestate), money that remains from a recent sale — for example, proceeds from the sale of a house, car, or other property — becomes part of the decedent’s estate unless it passed outside probate before death. The probate process (or a simplified alternative) is used to collect assets, pay valid debts and expenses, and then distribute any remaining funds to heirs under Florida’s intestacy rules.

Key legal rules that apply

• Intestate succession. If the decedent left no valid will, Florida’s intestacy rules determine who inherits the estate. See Florida’s intestacy statutes (Chapter 732) for the full text: Fla. Stat. ch. 732.
• Administration and payment of creditors. Before any leftover sale proceeds are distributed to heirs, the estate must pay funeral costs, administration expenses, and valid creditor claims in the order set by Florida law. The court-supervised administration process is governed by Florida’s probate statutes and rules. See the statutes on estate administration: Fla. Stat. ch. 733.
• Small-estate and summary procedures. If the estate’s assets in Florida are small, the estate may qualify for a simplified process (summary administration) or other non-administrative procedures, which are faster and cheaper than full administration. See Florida’s summary administration rules: Fla. Stat. ch. 735.
• Exceptions: non-probate transfers. Some money never goes through probate. Proceeds that were placed in accounts with a payable-on-death (POD) or transfer-on-death (TOD) beneficiary, held as joint tenants with right of survivorship, or otherwise transferred by contract or beneficiary designation pass directly to the named survivor(s) outside probate.
• Homestead considerations. If the sale proceeds were generated by sale of homestead property and the proceeds remained invested as homestead (rare and fact-specific), different rules can apply. Generally, though, once homestead property is sold and the proceeds are not kept under the protection of homestead law at the time of death, they will be treated as general estate assets. See the Florida Constitution (Article X, § 4) for homestead protection: Florida Constitution.

How distribution typically works in practice

Here are the practical steps a probate court (or the simplified alternative) follows:

1. Locate and identify assets — including any sale proceeds that remain in bank or brokerage accounts in the decedent’s name.
2. Determine which assets are non-probate (POD, TOD, joint tenancy) and exclude those from estate administration.
3. Open probate (or use summary administration) and appoint a personal representative if required.
4. Pay funeral expenses, administration costs, and valid creditor claims in the legally prescribed order.
5. Distribute the remainder to heirs according to Florida’s intestacy rules (Chapter 732). In general:
   • If the decedent is survived by a spouse and no descendants (or all descendants are also descendants of the surviving spouse), the spouse inherits the entire estate.
   • If the decedent is survived by a spouse and descendants who are not descendants of the surviving spouse, the spouse typically receives one-half of the estate and the descendants split the other half.
   • If the decedent has no spouse but has descendants, the descendants inherit (usually equally by representation).
   • If there are no descendants or spouse, other relatives (parents, siblings, more remote relatives) may inherit under the statute.

Illustrative hypothetical

Hypothetical: Maria sold her house two months before she died. Sale proceeds of $120,000 were deposited into her sole bank account. Maria died without a will and without any named POD beneficiary on that account.

Result under Florida law: The $120,000 is an estate asset. The personal representative (appointed by the probate court) must locate creditors and pay valid claims and administration costs. If, after paying debts and expenses, $100,000 remains, that remainder will be distributed to Maria’s heirs under the intestacy rules (Chapter 732). If Maria’s bank account had been payable-on-death to “John Smith,” John would receive the funds directly and they would not be part of the probate estate.

Timing and costs

Probate timing varies widely. Full administration can take many months or longer depending on the complexity and creditor claims. Summary administration and other streamlined methods can close an estate more quickly when the law’s eligibility requirements are met.

Where to find the law

• Florida intestacy rules: Fla. Stat. ch. 732
• Summary administration and simplified procedures: Fla. Stat. ch. 735
• Probate/estate administration rules: Fla. Stat. ch. 733
• Florida Constitution (homestead protection): Article X

Short summary: Sale proceeds that are still owned by the decedent at death are usually estate property. They must be used to pay expenses and creditors first, then distributed under Florida’s intestacy rules unless the funds passed outside probate (joint account, POD, etc.).

Disclaimer: This article explains general principles of Florida law and is for educational purposes only. It is not legal advice. For help with a specific estate matter, consult a licensed Florida attorney.

Helpful Hints

• Check account titles and beneficiary designations immediately — POD/TOD and joint accounts avoid probate and determine whether the funds are estate assets.
• Keep records of the sale (contract, settlement statement) and bank statements showing where proceeds were deposited.
• If the estate appears small, ask whether summary administration or a non-administrative transfer process applies — these can save time and cost. See Fla. Stat. ch. 735: Chapter 735.
• Know that creditors have priority. Even if heirs expect to receive the funds, creditor claims and administration expenses must be handled first.
• If you are an intended heir, gather proof of your relationship (birth certificates, marriage certificates) to present to the personal representative or the court.
• When in doubt, consult a Florida probate attorney early — they can explain whether probate is required, which procedure fits the facts, and how funds will be distributed under Florida law.