How to find out exactly where the sale proceeds from your dad’s house will go

Short answer: The destination of sale proceeds depends on how your dad owned the house (sole owner, joint owner, trust, or beneficiary deed) and whether the house is part of a probate estate. In Nebraska, sale proceeds typically pay secured liens and estate expenses first, then creditors, and finally beneficiaries under the will or under Nebraska intestacy rules. To know exactly where funds will go you must check property records, the title/closing statement, and any probate or trust filings. This is general information, not legal advice.

Detailed answer — step-by-step

1. Identify how the house was owned

The very first question is ownership form. Common possibilities:

• Sole ownership in your dad’s name — the house usually becomes part of his probate estate.
• Joint tenancy or tenancy by the entirety with right of survivorship — the surviving owner typically becomes sole owner automatically and the house (or sale proceeds) is non-probate property.
• Transfer-on-death (beneficiary) deed — if a valid beneficiary deed names a person, the named beneficiary receives the property on death without probate.
• Trust ownership — if the home was titled in a living trust, the trustee follows the trust instructions and the home usually avoids probate.

How to check: review the recorded deed at the county register of deeds (or recorder) where the property sits. The deed shows names, ownership type, and recorded mortgages or other recorded liens.

2. If the house sold while it was still in your dad’s name (closing before transfer of ownership)

If a sale closed while title remained in your dad’s name, the closing agent or title company disburses proceeds according to the title search and closing statement. Typical payments made at closing:

• Payoff of mortgages and recorded liens (mortgage lender, tax liens, mechanic’s liens).
• Real estate taxes and prorations.
• Closing costs and real estate commissions.
• If title shows your dad as sole owner and there is no recorded survivorship or beneficiary, the net proceeds belong to his estate and should be turned over to the personal representative (executor/administrator) if probate is open or expected.

3. If the house is part of a probate estate in Nebraska

When the home is estate property, Nebraska law gives the personal representative certain duties: collect estate property, pay valid debts and taxes, and distribute what remains to beneficiaries under the will or under Nebraska’s intestacy rules. In practice:

• The representative sells the property (if approved by the court or under powers granted in the will), deposits net sale proceeds into the estate bank account, and pays estate obligations.
• Estate obligations that generally have priority include funeral costs, administration expenses, taxes, and valid creditors’ claims.
• After paying debts and allowed expenses, remaining funds are distributed to beneficiaries according to the will or intestacy rules.

For Nebraska Probate Code and procedures, see Chapter 30 (Decedents’ Estates) on the Nebraska Legislature site: Neb. Rev. Stat., Chapter 30.

4. Secured creditors and liens normally get paid first

Mortgage lenders, recorded tax liens (county, state, federal), and properly recorded mechanic’s liens are paid from sale proceeds at closing. If the lender has a security interest, title companies or closing attorneys usually require payoff to deliver clear title to the buyer.

5. If the house was non-probate (joint owner, beneficiary deed, or trust)

When the property passes outside probate, sale proceeds usually follow the non-probate succession:

• Joint tenant survivor owns the property or receives proceeds.
• Beneficiary named on a transfer-on-death instrument receives the property or its proceeds.
• Trust assets are distributed by the trustee according to the trust instrument.

6. How you can find exactly where the proceeds will go — practical steps

1. Get the deed and recorded documents. Visit the county register of deeds (where the house is located) or the county’s online land records. The deed shows how title was held and lists recorded liens.
2. Obtain the title search or title commitment. A title company or closing agent prepares this; it lists liens, mortgages, and other claims that must be satisfied at closing.
3. Ask for the final closing statement (Closing Disclosure/HUD-1). That document lists every payoff and the net proceeds distribution from the sale.
4. If probate has been opened, get copies of the probate filings from the county court (petition, appointment of personal representative, inventory, and accountings). Probate records are public; the county court clerk can help you find the case. See Nebraska probate forms and information: Nebraska Judicial Branch — Probate forms.
5. Request the estate accounting from the personal representative or trustee. Executors must provide accountings to beneficiaries and to the court in certain circumstances. If the executor refuses, beneficiaries can petition the court for an accounting.
6. Search for liens and tax records: county treasurer/assessor for unpaid property taxes, county clerk or register of deeds for recorded liens, and state/federal tax agencies for tax liens.
7. Consult the closing/title company and the lender(s). They can tell you which parties are being paid at closing and why.

7. If you are a beneficiary or think you should get part of the proceeds

If you are named in a will or are an heir under intestacy rules, and you believe the proceeds were misdirected or not accounted for, steps you can take include:

• Ask the personal representative for a formal accounting and copies of the closing statement, bank statements, and receipts showing distributions.
• File a claim in the probate case (if you are a creditor) or file an objection or petition with the county court if you suspect misconduct or improper distributions.
• If the house passed outside probate to a joint owner or beneficiary, you may have limited remedies. You can still investigate recorded instruments and closing documents, and if you suspect fraud, speak with an attorney.

8. Typical documents to request or obtain

• Recorded deed and any beneficiary/transfer-on-death deed.
• Title commitment, title insurance policy, and final closing statement (Closing Disclosure/HUD-1).
• Mortgage payoff statement(s) and lien releases.
• Probate petition, appointment order, inventory of estate assets, and accountings filed with the county court (if applicable).
• Trust document and trustee accountings (if a trust exists).

Where to look for records in Nebraska

• County Register of Deeds — recorded deeds and liens.
• County Clerk or County Court — probate filings and case records.
• Title company or closing attorney — title report and closing statement.
• County Treasurer/Assessor — property tax status and amounts due.
• Nebraska Legislature site for probate statutes: Neb. Rev. Stat., Chapter 30 (Decedents’ Estates).
• Nebraska Judicial Branch probate information and forms: Probate forms.

When to consult an attorney

Consider contacting a Nebraska probate or real estate attorney if:

• You cannot get the closing statement or a complete accounting.
• You suspect the personal representative acted improperly or failed to follow the court’s directions.
• The title search shows unexpected liens or claimants.
• The ownership status is unclear or you face disputes among heirs.

Reminder / disclaimer: This article explains general principles under Nebraska law and practical steps you can take to trace sale proceeds. It does not constitute legal advice. For advice about a specific situation, consult a licensed Nebraska attorney.

Helpful Hints

• Start with the deed: it answers the ownership question more often than anything else.
• Ask the title company for the closing statement — it shows exactly where every dollar went.
• If the property is in probate, visit the county court clerk’s office where the probate case is filed to get copies of filings and accountings.
• Keep copies of correspondence and request documents in writing so you have a paper record.
• If possible, obtain a short title report early — it identifies mortgages and liens that will be paid out of sale proceeds.
• If you are an heir, be polite but persistent. Executors sometimes respond to a firm written request for an accounting faster than to informal queries.
• When in doubt about legal rights or contesting distributions, consult an estate / probate attorney promptly — deadlines for claims and objections can be short.