Short answer

If a person who dies without a will (intestate) left money from a sale — for example, proceeds from the sale of a home, car, or other property — those funds are part of the decedent’s estate. In Louisiana the estate must be collected and administered through a succession. A court-appointed succession representative collects assets (including sale proceeds), pays funeral costs, administration expenses, and valid creditor claims, and then distributes what remains to lawful heirs under Louisiana’s intestacy rules. If no heirs exist, the property will ultimately pass to the state under Louisiana law.

Detailed answer — step by step

1. Sale proceeds become estate assets

Money received from the sale of any property owned by the deceased at the time of death generally becomes part of the deceased’s estate. That is true whether the sale happened just before death and the money remained in the decedent’s account, or the property was sold as part of handling the estate after death.

2. A succession must be opened

When someone dies intestate in Louisiana, interested persons (heirs or creditors) open a succession proceeding in the appropriate parish court. The court will recognize a succession representative (often called an administratrix or administrator, or more generally a succession representative). That representative is authorized to gather assets, including sale proceeds, and to manage the succession process under court supervision.

3. Collecting assets and identifying heirs

The succession representative locates bank accounts, securities, sale proceeds, and other assets. The representative will also identify likely heirs under Louisiana’s intestacy rules (for example, surviving spouse, children, parents, siblings, and more remote relatives if closer relatives do not exist). Louisiana’s Civil Code governs intestate succession — the court follows those rules when ordering distribution of the remaining estate.

4. Paying debts, costs, and taxes

Before heirs receive distributions, the estate must pay funeral expenses, reasonable administration costs (court costs, attorney fees where allowed), and valid creditor claims. The succession representative uses estate assets — including sale proceeds — to satisfy these obligations. If the estate lacks enough liquid assets, the representative may be required to sell other estate property to pay debts.

5. Distribution to heirs

After debts and administration costs are paid, the remaining funds are distributed to heirs according to Louisiana’s intestacy rules. The court will enter an order or judgment approving the distribution. Heirs receive funds only after the representative follows any required notice and waiting periods for creditor claims or challenges.

6. What if no lawful heirs are found?

If the court determines there are no lawful heirs, the estate, including any remaining sale proceeds, will escheat to the State of Louisiana in accordance with state law.

7. Small estate procedures and timing

Louisiana provides simplified or summary succession procedures for smaller or uncomplicated estates. These procedures can be faster and cheaper than a full succession, but they still require proof of death, proof of ownership of the asset, and documentation of who is entitled to receive the funds. The exact process and eligibility depend on the type and value of the assets and the parish court’s rules.

8. Practical examples

– If the decedent sold a house shortly before death and the sale funds are in the decedent’s bank account, those funds must be included in the succession and distributed after debts and costs.
– If a bank holds sale proceeds and an heir presents documentation without a succession, the bank will usually require either a succession judgment or a valid small succession affidavit (where appropriate) before releasing funds.

How to claim or protect sale proceeds as an heir

1. Obtain certified copies of the death certificate.
2. Gather proof of your relationship to the decedent (birth certificates, marriage certificate, etc.).
3. Locate account statements, sale contracts, closing statements, or receipts showing the existence and location of the sale proceeds.
4. Contact the bank or institution holding the funds — they will explain what documents they need (court-issued letters of administration, succession judgment, or small succession affidavit).
5. Consider opening a succession in parish court or using a simplified succession procedure if eligible.
6. Talk with a Louisiana succession attorney for help navigating court filings, creditor claims, and distributions if the estate is contested or complex.

When to consult an attorney

Contact an attorney if you expect creditor disputes, multiple claimants to the funds, a disagreement about heirs, or if the estate includes real estate or business interests. An attorney can help ensure proper notice, protect heir rights, and avoid personal liability for a succession representative who distributes funds incorrectly.

Helpful Hints

• Do not assume bank will release funds without court documents — banks normally require a court order or executor/administrator letters.
• Keep careful records of any money paid out by the succession representative to avoid disputes later.
• If you are appointed representative, post any required notices and follow the court’s guidance to limit personal liability.
• Ask the parish clerk of court about small succession rules in your parish — those rules differ by parish and by asset type.
• If a creditor later surfaces after distribution, consult an attorney promptly — the representative may have defenses if they followed the court order and acted in good faith.
• Look for unpaid taxes or liens before distributing funds; unresolved obligations can later become personal obligations of the estate representative if not handled properly.