Maine — Where Will My Dad’s House Sale Proceeds Go? FAQ and How to Find Out

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.

How to trace where sale proceeds from a deceased person’s house will go in Maine

Short answer: The destination of sale proceeds depends on how the house is owned (sole owner, joint owner, trust, or by a transferable instrument), whether the estate goes through probate, and whether any mortgages, liens, taxes, or creditor claims exist. In Maine, a personal representative (if the estate is probated) or a trustee/other named transferee (if the property passes outside probate) must satisfy liens and debts first, then distribute remaining funds according to the will or Maine’s intestacy rules. See the Maine Probate Code (Title 18‑A) for the legal framework.

Detailed answer — step by step

1. Identify how title was held

Who owns the house on paper determines whether proceeds pass through probate or directly to someone else. Common ownership patterns:

  • Sole ownership in your dad’s name: the house usually becomes part of his probate estate and sale proceeds go to the estate subject to probate administration.
  • Joint tenancy with right of survivorship or tenancy by the entirety: ownership typically passes automatically to the surviving joint owner on your dad’s death, so proceeds from any later sale belong to the surviving owner, not the probate estate.
  • Trust ownership: if the house is owned by a living trust, the trustee follows the trust terms and distributes sale proceeds per the trust document, outside probate.
  • Transfer-on-death (TOD) deed or deed with beneficiary (if Maine recognizes that instrument): proceeds pass to the named beneficiary outside probate.

How to check: order a copy of the deed from the county Registry of Deeds (where the property is located). That deed will show the recorded owners and any listed co‑owners or transfer provisions.

2. If the house is part of probate, find the personal representative or probate file

If the house goes into probate, a personal representative (executor/administrator) is appointed by the probate court to collect assets, pay debts, and distribute remaining proceeds. You can:

  • Search the probate court records in the county where your dad lived to find the estate case number and file. Maine probate court information and how to locate the court are available from the Maine Judicial Branch: Maine Probate Courts.
  • Request the probate docket file or contact the court clerk to learn who the personal representative is and to view filings (petitions, inventories, accountings, and orders).

3. Understand the order of payments from sale proceeds

When the personal representative sells the house, proceeds are used in this general order:

  1. Pay off mortgages and recorded liens (mortgage lenders or judgment lienholders have priority over unsecured creditors).
  2. Pay costs of sale (real estate commissions, closing costs) and probate administration expenses (attorney fees, court costs).
  3. Pay funeral expenses, allowed family allowances, and taxes owed by the decedent (including federal and state income taxes, and any estate taxes where applicable).
  4. Pay valid creditor claims against the estate.
  5. Distribute remaining funds according to the will; if no valid will exists, distribute under Maine’s intestacy rules (the Maine Probate Code governs distribution).

These priorities come from Maine’s probate statutes and general fiduciary duties for personal representatives. For the Maine Probate Code (Title 18‑A), see: Maine Revised Statutes, Title 18‑A — Probate Code.

4. Look for liens, mortgages, tax encumbrances, and judgments

Even if the deed shows sole ownership, recorded mortgages and liens remain attached to the property until satisfied. To discover these:

  • Order a title search or check recorded instruments at the county Registry of Deeds.
  • Ask the personal representative for a copy of the title report and closing statement after sale.

5. If you are a beneficiary or potential heir, request an accounting

Beneficiaries and heirs are entitled to information about estate administration. In Maine probate cases you can:

  • Request from the personal representative a detailed accounting showing sale proceeds, payments (mortgage, liens, taxes), administration costs, and the proposed distribution.
  • If the personal representative refuses or you suspect improper handling, you can petition the probate court to compel an accounting or to review the personal representative’s actions. The Probate Code gives the court power to enforce fiduciary duties — see Title 18‑A for the court’s oversight authority: Title 18‑A — Maine Probate Code.

6. If the property passed outside probate (joint title or trust), follow that route

When property passes outside probate:

  • Joint survivor: contact the surviving joint owner to confirm ownership and the disposition plan for sale proceeds.
  • Trust: ask the trustee for the trust instrument and accounting showing sale proceeds and distributions.
  • Named beneficiary under a transfer instrument: the beneficiary or named transferee controls distribution according to the instrument.

7. When something looks wrong — court options and remedies

If you suspect mismanagement or you have a competing claim:

  • You can file objections with the probate court, request an accounting, and, if necessary, petition to remove a personal representative for cause.
  • The court can order recovery of funds, surcharge a fiduciary for breaches, and direct proper distribution under the will or intestacy law.

Key statutes and resources

Note: the exact statutory subsections that apply will depend on your facts (for example: whether there is a will, whether a trust exists, and the presence of liens or a surviving spouse). Review Title 18‑A and the probate filings for the estate to identify the controlling provisions.

Helpful hints — what you can do right now

  • Get a copy of the deed at the county Registry of Deeds to see how the property was titled.
  • Search the probate court for an estate case in the county where your dad lived. If one exists, obtain the case number and file documents (petition, appointment of personal representative, inventory, accountings).
  • Ask the personal representative (executor) for a written accounting and a copy of the closing statement showing gross sale proceeds and how funds were applied at closing.
  • Order a title search or ask for the title company’s report used at closing to identify mortgages, liens, or other encumbrances paid from sale proceeds.
  • If the property passed by trust or joint ownership, ask the trustee or surviving joint owner for documentation showing how funds will be distributed.
  • Keep copies of correspondence and any documents you receive. If necessary, request certified copies of probate orders from the court clerk.
  • If you’re unsure of your rights or you suspect misconduct, consult a Maine probate attorney for advice and (if needed) to represent you in court. A lawyer can review the probate file and, if appropriate, file motions to compel an accounting or challenge distributions.

Disclaimer: This article explains general Maine law and common steps for tracing sale proceeds after a person’s death. It is educational only and is not legal advice. For advice about a specific situation, contact a licensed attorney in Maine who practices probate and estate law.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.