Detailed Answer
Quick overview: In Massachusetts, when a person dies without a will (intestate), any money that comes into the estate — including leftover proceeds from the sale of the decedent’s property — is estate property. The probate process determines who may collect and distribute those funds. The personal representative (appointed by the Probate Court) must use sale proceeds first to pay valid debts, funeral and administration expenses, and taxes. Any remaining balance is distributed to the decedent’s heirs according to Massachusetts intestacy law.
Step-by-step, what typically happens:
- Proceeds become part of the estate. If property is sold after death (for example, real estate, a car, or personal property), the money from that sale is estate property unless the decedent had already validly transferred the funds to someone else or the asset passed outside probate (for example, by joint ownership with right of survivorship or by beneficiary designation).
- A personal representative is appointed. Because the decedent died intestate, someone (often a close family member) will petition the Massachusetts Probate and Family Court to be appointed personal representative. That person has authority to marshal estate assets — including sale proceeds — pay bills and taxes, and distribute the residue of the estate under the intestacy rules. See Massachusetts’ probate rules and forms at the Probate and Family Court website: https://www.mass.gov/orgs/probate-and-family-court.
- Debts, expenses, and taxes are paid first. The personal representative must identify and pay allowed creditor claims, funeral costs, administration costs (including their own statutory commission unless waived), and any estate or income taxes before distributing anything to heirs. The representative should follow the court’s directions and the statutory priorities set out in Massachusetts probate law.
- The remainder is distributed under the intestacy rules. After satisfying liabilities, the remaining sale proceeds are distributed to heirs under Massachusetts intestacy law. Intestacy determines which family members inherit (spouse, children, parents, siblings, etc.) and in what order. For the statutory framework, see Massachusetts General Laws, Chapter 190B (Uniform Probate Code): https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleII/Chapter190B. For the intestacy provisions in particular, see Section 3-101: https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleII/Chapter190B/Section3-101.
Illustrative hypotheticals (simple examples):
- If A dies without a will and leaves a surviving spouse but no children, the remaining sale proceeds will typically go to the spouse after debts and expenses.
- If B dies leaving a spouse and children, the funds are shared among the spouse and children according to the intestacy rules; the exact shares depend on the family makeup under Massachusetts law.
- If C dies with no identifiable heirs, the residue (including leftover sale proceeds) may ultimately escheat to the Commonwealth of Massachusetts after the court and statutory processes are complete.
Practical timing and court involvement: Probate timelines vary. The personal representative normally must open an estate in Probate Court, give notice to creditors, file inventories and accountings when required, and petition the court for final distribution. Smaller estates sometimes qualify for simplified or expedited procedures, but eligibility and procedures depend on the estate’s assets and circumstances. See the Probate and Family Court resources for guidance: https://www.mass.gov/guides/information-for-personal-representatives.
Key legal references:
- Massachusetts General Laws, Chapter 190B (Uniform Probate Code): https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleII/Chapter190B
- Intestate succession (see the intestacy section of Chapter 190B): https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleII/Chapter190B/Section3-101
- Probate and Family Court official guidance: https://www.mass.gov/orgs/probate-and-family-court
Common complications
- Disputed ownership — family members may claim the sale proceeds are theirs (for example, arguing the asset was owned jointly or passed by contract). The probate court resolves such disputes.
- Creditor claims exceed available cash — if liabilities exceed the estate’s assets, heirs typically receive little or nothing.
- Assets that pass outside probate — bank accounts or securities with pay-on-death or transfer-on-death designations do not become probate assets and so are not distributed by intestacy rules.
Next steps if you are involved: If you are holding or know about leftover sale proceeds from someone who died without a will in Massachusetts, consider contacting the local Probate and Family Court to determine whether an estate has been opened. If not, a close family member may petition to be appointed personal representative so the funds can be administered and distributed properly.
This is general information only and is not legal advice. For advice about a specific situation, consult a licensed Massachusetts probate attorney or contact the Probate and Family Court.
Helpful Hints
- Secure documentation: keep the decedent’s death certificate, sale closing statement, bank statements, and any correspondence about the sale.
- Check title and beneficiary designations: determine whether the asset passed automatically outside probate (joint tenancy, TOD/POD).
- Contact the Probate and Family Court early: the court can confirm whether an estate is open and provide necessary forms. https://www.mass.gov/orgs/probate-and-family-court
- Don’t distribute funds until liabilities are cleared: unauthorized distributions can create personal liability for the person who pays out estate money.
- Consider small-estate procedures: if the estate is small, simplified collection procedures may apply — ask the court or an attorney if your situation qualifies.
- Keep good records: the personal representative should document all receipts, payments and distributions in case the court or heirs request an accounting.
- Get help if there’s a dispute: if family members disagree about who should get the money, seek probate counsel promptly to avoid costly mistakes.