What happens to sale proceeds after a decedent’s home is sold in Georgia?

This FAQ-style explanation describes how Georgia law typically treats money left over after a deceased person’s home is sold and debts are paid. It covers the common scenarios you’re likely to encounter and practical next steps. This is educational information only and not legal advice.

Detailed Answer

Short answer: Usually, if the house is part of your father’s probate estate, any net proceeds from a sale go into the estate and are distributed under the terms of your father’s will (after the executor pays valid debts, taxes, and administration costs). But different ownership arrangements and actions taken before or after death can change who gets the money.

Key Georgia law background

Georgia law generally requires that assets owned by the decedent at death be gathered by the personal representative (executor or administrator), debts and expenses be paid, and the remainder be distributed according to the will or by intestacy rules if there is no valid will. See Georgia Code, Title 53 — Wills, Trusts, and Administration of Estates: https://www.legis.ga.gov/georgia-code/title/53

Common scenarios

Sale by the personal representative after death (typical probate sale): If the home is an asset of your dad’s estate and the personal representative sells it during probate, the closing proceeds are estate funds. The personal representative pays mortgage(s), liens, funeral expenses, taxes, and creditor claims. After creditors and administration expenses are paid and the probate court approves distributions (if required), the remainder is distributed according to the will. This is the most straightforward situation where leftover funds flow into the residuary estate and get distributed as the will directs.
Sale before probate by an agent using a power of attorney (POA): A POA normally ends at the principal’s death. An agent cannot validly act on behalf of a deceased person. If an agent used a POA to sell the house after the owner’s death, the sale may be void or the agent may have to account for the proceeds to the estate. If a sale occurred while the decedent was alive and competent, the proceeds belong to whoever owned the property at the time of sale.
Survivorship ownership (joint tenancy or tenancy by the entirety): If the property was owned jointly with another person as joint tenants with right of survivorship or as tenants by the entirety (common for married couples in Georgia), the surviving owner typically becomes the sole owner automatically at death. In that case the property (and any sale proceeds after a post-death sale by the survivor) generally do not become part of your father’s probate estate and are not distributed under his will.
Property held in a trust: If the house was held in a living trust (revocable trust), the trustee follows the trust terms. Proceeds from a sale of trust property go to the trust, then get distributed according to the trust document, not the will.
Sale by a guardian or conservator: If a court-appointed guardian or conservator sells property belonging to an incapacitated person while the person is alive, the sale is governed by court approval and the proceeds belong to the ward. After death, any funds that were still the decedent’s property become part of the estate unless a survivorship, trust, or other non-probate arrangement applies.
Sale by an heir or relative without authority: If someone without legal authority sold the home after death, the transaction may be challenged. Proceeds may need to be recovered for the estate; consult a probate attorney promptly.

How distribution works if the sale is an estate transaction

The personal representative collects estate assets, including sale proceeds.
Priority payments are made: funeral expenses, estate administration costs (including the personal representative’s allowed fees), secured debts (mortgages or liens), and other valid creditor claims. Georgia probate law governs these priorities under Title 53: https://www.legis.ga.gov/georgia-code/title/53
Any remaining funds are distributed according to the will. If there is no will, Georgia’s intestacy statutes determine who gets what.

When the will controls

If the house (or its sale proceeds) is part of the probate estate, the will’s directions about specific gifts, debts to be paid from the estate, and residual distribution control who receives the leftover money. Typical example: the will might give $50,000 to a charity and the remainder to children equally; sale proceeds flow into the estate and are used to satisfy those dispositions.

When the will does not control

The will does not control non-probate assets. Non-probate assets include property that passed by survivorship, property in a trust, assets with designated beneficiaries (retirement accounts, life insurance), and property already transferred out of the decedent’s name before death.

Practical indicators to determine where the money should go

Who was listed as the owner on the deed on the date of death? If the deed named your father alone, the property is likely probate property unless a trust or other non-probate device applies.
Was a mortgage or lien paid at closing? Secured creditors must be paid from the sale proceeds before distribution.
Was the sale handled by an executor or by someone claiming authority through a POA after death? If the latter, the sale may be invalid and the proceeds should be accounted for in probate.
Does a probate case exist and has the personal representative filed an inventory or accounting? Probate records (Letters Testamentary or Letters of Administration) show who has authority to handle estate funds.

What you can do next

Ask who sold the house and request the closing statement (HUD-1/Closing Disclosure) and the deed transfer. The closing statement shows how the sale funds were applied.
Check the deed and chain of title (county clerk/registrar) to see how the property was owned at death.
Look for probate filings in the county probate court where your father lived. If there is a probate case, the court file will show the estate assets, creditors’ claims, and distribution plan; the personal representative’s letters give authority to act. Many Georgia probate courts have online records or staff who can help; a list of Georgia courts is at https://www.gacourts.gov/
If the sale was conducted by someone without authority, or you suspect mishandling of estate funds, contact a Georgia probate attorney to review the facts. An attorney can advise whether the sale must be reversed, proceeds recovered, or an accounting required.

Helpful Hints

Get basic documents early: death certificate, deed, closing statement, the will, and any trust documents.
Check whether the property was joint tenancy or tenants by the entirety — those forms of ownership pass outside probate.
Remember: a power of attorney ends at death. After death, only a court-appointed personal representative or someone with other court authority may handle estate property unless the property passed outside probate.
If you are a beneficiary, request a copy of the estate inventory and the personal representative’s accounting. Georgia law requires certain reporting during administration (see Title 53: https://www.legis.ga.gov/georgia-code/title/53).
Time matters: creditors’ claim periods and probate deadlines vary. If you suspect wrongdoing, consult a probate attorney promptly to protect beneficiaries’ rights.
If you cannot afford an attorney, contact your local legal aid office or the Georgia Bar Association for referrals to low-cost resources.