Disclaimer
This information is educational only and not legal advice. I am not a lawyer. For advice about your specific situation, consult a licensed Missouri attorney or the probate court in the county where the property is located.
Detailed Answer
If your parent’s house is sold, the destination of the sale proceeds depends on who legally owned the house and whether the house is part of an estate or a trust. Missouri law treats differently property that passes by title (deed), by survivorship, by trust, or through probate. Below is a step‑by‑step explanation of how to determine exactly where the money will go.
1. Confirm how the property is titled
Start by checking the recorded deed. Look at the names on the deed and the wording that describes ownership:
- Sole ownership in your dad’s name only — the house will usually be part of his estate and must pass under his will or Missouri intestacy rules if there is no will.
- Joint tenants with right of survivorship — the surviving joint owner(s) automatically own the property when your dad died; the property typically does not go through probate and sale proceeds belong to the surviving owner(s).
- Tenants in common — each owner has an individual share; your dad’s share would pass according to his will or intestacy and may be part of probate.
- Owned by a trust — the trustee controls the property. On sale, the trustee distributes proceeds under the trust terms without probate.
- Life estate / remainder interests — distributions follow the life-estate agreement or deed language.
You can get a copy of the deed at the county recorder (also called the recorder of deeds or land records). Most Missouri counties provide online searchable land records.
2. If the property is subject to probate
When the house is part of probate, the executor (if there is a will) or the administrator (if there is no will) handles sale and distribution under court supervision. Before distributing sale proceeds, the estate must pay:
- Mortgages and other secured loans (payoffs are made from sale proceeds).
- Unpaid property taxes, tax liens, and recorded judgments (these survive death and attach to title until paid).
- Approved creditor claims presented during the probate claims period.
- Probate court costs, attorney fees, and costs of administration (appraisal, broker fees, closing costs when allowed).
After these obligations are satisfied, the remaining funds are distributed to beneficiaries per the will. If there is no will, Missouri intestacy law governs distribution. Missouri’s statutes on decedents’ estates and the probate process provide the rules for administration and distribution. See Missouri Revised Statutes, Chapter 474 (Decedents’ Estates: Administration and Distribution): https://revisor.mo.gov/main/OneChapter.aspx?chapter=474.
3. If the property passed outside probate
If title passed by survivorship (joint tenancy), by living trust, or by beneficiary deed/pourover deed, the house may not be part of probate. In those cases:
- Joint owner(s) receive the property automatically. If they sell, proceeds go to those owners after paying liens and taxes.
- The trustee (for trust property) must follow the trust document. Proceeds go to the trustee first, and then to the beneficiaries as the trust requires.
- Records at the county recorder’s office and the trust documents or trustee instructions will show who has authority to sell and who is entitled to the proceeds.
4. Liens, mortgages, and taxes get paid first
Sale proceeds do not all go to heirs or beneficiaries immediately. At closing, title companies and closing attorneys typically pay off recorded mortgages and liens from the sale proceeds. If the property was subject to federal or state tax liens, or to recorded judgments, those claims must be addressed before net proceeds are distributed.
5. How to find exact distribution amounts
To determine exact distribution amounts you will need:
- A copy of the recorded deed and a current title report to identify mortgages and liens.
- If probate is open, review the estate inventory, court orders authorizing sale, and the proposed distribution plan or final accounting filed with the probate court.
- If there is a trust, review the trust instrument and the trustee’s accounting.
- Settlement statements from the closing (HUD‑1 or Closing Disclosure) that show gross sale price, payoffs, closing costs, commissions, and net proceeds.
- Any court orders directing payment of funeral costs, family allowances, or other statutory allowances.
6. What to do if you can’t get the answers
- Contact the county recorder’s office for copies of the deed and any recorded liens.
- Contact the probate court clerk in the county where your dad lived to see if an estate case is open and to request filed documents (petitions, inventories, receipts, accountings).
- Ask the executor, administrator, or trustee for the closing statement and an accounting of how proceeds were distributed.
- If you suspect improper handling, you can file a petition in probate court for an accounting or to challenge the executor/administrator or trustee actions.
7. Timing and possible reductions
Even when sale proceeds are designated to a beneficiary, distributions can be delayed for payments to creditors, tax obligations, attorney fees, or court procedures. You should expect some or all of these deductions if the sale was part of estate administration.
8. Common scenarios (examples)
Example A: Dad held title alone, he had a will, and the executor sold the house during probate. The mortgage was paid at closing; approved creditor claims and probate costs were paid. The remaining net proceeds were deposited in the estate account and distributed to beneficiaries under the will when the court approved the final accounting.
Example B: Dad and his spouse owned the house as joint tenants. When he died, surviving spouse owned the home outright. The surviving spouse sold the house and received the net proceeds after paying the mortgage and closing costs. Probate was not required for the house.
Example C: The house was in a living trust. The trustee sold the house and distributed proceeds according to the trust terms without probate court involvement.
Helpful Hints
- Start with the deed: the county recorder is the simplest place to confirm ownership type and recorded liens.
- Get the closing statement (often called a HUD‑1 or Closing Disclosure). It is the single best document showing where money went at sale.
- Check the probate court file if you suspect the sale was part of the estate. Probate filings are public records in the county where the decedent lived when they died.
- Request an estate inventory or trustee accounting in writing if you are a beneficiary or interested party; executors, administrators, and trustees owe certain duties to beneficiaries and interested persons.
- If you see unidentified lien payoffs or unexplained deductions on the settlement statement, ask for documentation (lien release, payoff statement, invoice) before accepting the accounting.
- If you believe the executor or trustee is mismanaging funds, you can ask the probate court to compel an accounting or to remove the fiduciary. An attorney can help evaluate options.
- Keep copies of all documents you obtain (deeds, closing statements, probate filings, trust instrument). They form the paper trail that shows exactly how proceeds were distributed.
- Use the Missouri Revised Statutes as a reference for probate procedures: see Chapter 474 (Decedents’ Estates: Administration and Distribution): https://revisor.mo.gov/main/OneChapter.aspx?chapter=474.
If you want, tell me what you have already checked (deed, county records, probate case status), and I can list the exact documents to request next and where to ask for them in Missouri.