FAQ: Who gets leftover sale proceeds when someone dies intestate in Maine?
Short answer: In Maine, money from a sale that belonged to a person who dies without a will becomes part of that person’s probate estate unless it passed outside probate (for example, by joint tenancy, a payable-on-death account, or a beneficiary designation). The personal representative (administrator) collects estate assets, pays valid debts and administration costs, then distributes the remaining cash according to Maine’s intestacy rules in the Maine Probate Code.
Detailed answer — how sale proceeds are handled under Maine law
1. Determine how the proceeds were held at the time of death
Not all sale proceeds go through probate. You must first identify how the funds were titled:
- If the proceeds were in an account titled solely in the decedent’s name, they are an estate asset and normally pass through probate.
- If the funds were in an account with a surviving joint owner with rights of survivorship, they typically pass directly to the surviving joint owner outside probate.
- If the account had a beneficiary designation or payable-on-death (POD) or transfer-on-death (TOD) instruction, the named beneficiary receives the funds outside probate.
- If the proceeds were from the sale of property the decedent owned as a tenant in common, the decedent’s share becomes estate property and is handled through probate.
2. If proceeds are part of the probate estate
When sale proceeds are estate assets, these basic steps occur:
- A personal representative (administrator) is appointed by the probate court to collect assets, including the sale proceeds.
- The administrator uses estate funds to pay funeral and administration expenses, reasonable attorney fees, taxes, and valid creditor claims.
- After creditors and expenses are paid (and after any required waiting periods or notices), the remaining cash is distributed to heirs under Maine’s intestacy rules.
3. How Maine’s intestacy rules determine who gets what
Maine’s Probate Code sets the order and share of distribution when someone dies without a will. Which relatives inherit depends on who survives the decedent (spouse, children, parents, siblings, etc.). If the decedent has a surviving spouse and/or descendants, the shares will follow the statutory priority and percentage rules. If no heirs exist, the estate may ultimately escheat to the State of Maine.
For the exact statutory framework, see the Maine Probate Code (Title 18‑B) on intestate succession: https://legislature.maine.gov/statutes/18-B/.
4. Practical examples (hypothetical)
Example A — Proceeds in a sole account: Patricia sold a house before she died and left $50,000 in a bank account in her name alone. No beneficiary existed. The $50,000 is estate property. The administrator pays valid bills and creditors, then distributes the net remainder to Patricia’s heirs under Maine intestacy rules.
Example B — Joint account: James sold a car and deposited proceeds into an account held jointly with his sister with rights of survivorship. When James dies, the surviving sister typically keeps the account balance without probate.
Example C — Mixed situation: Maria sold a rental and signed the closing check to herself; she deposited half into a POD account naming her child and half into her personal account. The POD portion goes directly to the named child; the personal account portion is estate property and will be distributed under intestacy after administration.
5. Small estates, summary administration, and timing
Maine provides simplified procedures for small estates or where the only assets are limited cash or personal property. These procedures can shorten administration and transfer of funds to heirs, but they still require following statutory steps and filing with the probate court when appropriate. Check the Maine probate court resources for small‑estate rules and forms:
https://www.courts.maine.gov/ and the Maine Probate Code: https://legislature.maine.gov/statutes/18-B/.
6. When creditors and taxes must be paid
The estate must satisfy valid creditor claims and any applicable taxes before distributing funds. The administrator follows statutory notice periods so unknown creditors have an opportunity to file claims. Distribution before creditor claims are resolved can expose the administrator and beneficiaries to liability.
7. If no heirs are found
If no heirs can be located, or if the statute finds no one entitled under intestacy, the residue of the estate may escheat to the State of Maine in accordance with state law.
Helpful Hints
- Don’t assume sale proceeds automatically go to the closest relative — check how the funds were titled and whether there were beneficiary designations.
- Locate account records, closing statements, deeds, beneficiary forms, and any beneficiary or POD/TOD designations early.
- Contact the probate court in the county where the decedent lived to learn whether small‑estate procedures apply and to get necessary forms. Maine courts: https://www.courts.maine.gov/.
- Keep receipts and records of all estate expenses and payments. The administrator must account for receipts and disbursements to the court and heirs.
- Be cautious about paying out distributions until creditor notice periods have passed. Early distribution can create personal liability for the administrator.
- If ownership is unclear (joint tenancy vs. tenants in common), request copies of the property deed and account documents — the phrasing determines whether an asset passes outside probate.
- If you believe the estate will be complex, or if family members dispute distributions, consider talking with a probate attorney who handles Maine estates.
Where to read the law and get court information
Maine Probate Code (Title 18‑B) — general statute index: https://legislature.maine.gov/statutes/18-B/
Maine Judicial Branch (probate court information and self‑help): https://www.courts.maine.gov/
Disclaimer
This article explains general principles of Maine probate and intestacy law for informational purposes only. It is not legal advice and does not create an attorney‑client relationship. For advice about a particular situation, consult a licensed Maine attorney who practices in probate and estate administration.