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Short summary: When a house owned by a deceased person is sold in New York, the money from that sale normally becomes part of the person’s estate. The estate’s personal representative (the executor named in a will or the court-appointed administrator) is responsible for receiving the proceeds, paying debts, taxes, and expenses, and then distributing what’s left to beneficiaries or heirs. To find out exactly where the sale proceeds went, you will need to look at probate records, the closing documents, and the estate accounting or ask the representative for specific documents.

How this works under New York law (plain language)

• Ownership and title matter first. If the decedent owned the house alone and it is part of the estate, proceeds from a sale become estate funds. If the house passed outside probate (for example, to a joint owner by right of survivorship or to a named beneficiary through a valid transfer-on-death mechanism), the sale proceeds may have gone directly to that joint owner or beneficiary instead of to the estate.
• The person in charge (called the executor if there is a will, or an administrator if there is no will) acts as a fiduciary. They must follow the will (if any) and New York probate rules when handling proceeds, including using estate monies to pay funeral costs, creditor claims, taxes, and reasonable administration expenses before distributing the remainder.
• New York’s estate and surrogate court laws set the framework for who gets paid and when. For general statutory material, see the Estates, Powers & Trusts Law and the Surrogate’s Court Procedure Act: https://www.nysenate.gov/legislation/laws/EPTL and https://www.nysenate.gov/legislation/laws/SCPA. For practical probate and Surrogate’s Court information see the New York State Courts pages: https://www.nycourts.gov/courthelp/estate/index.shtml and https://www.nycourts.gov/courts/surrogates/.

Step-by-step: How to find out exactly where the sale proceeds went

1. Identify who is legally handling the estate.

   Find out whether there is a will and who the executor (personal representative) is. If no will exists, the court appoints an administrator. The court issues formal documents called Letters Testamentary or Letters of Administration — these prove the person’s authority to act. You can get these from the local Surrogate’s Court where the estate is or by asking the person acting for the estate.

2. Get the basic documents you need to trace the proceeds.

   Ask for copies of the following items (a beneficiary or heir usually has the right to ask):

   • The will and any codicils.
   • Letters Testamentary or Letters of Administration (show the fiduciary’s authority).
   • The court order authorizing any sale of real property (if the sale was done through or required Surrogate’s Court approval).
   • The closing statement / settlement statement (HUD-1 or Closing Disclosure) from the house sale showing gross sale price, liens paid, and net proceeds.
   • Bank deposit records that show where the proceeds were deposited (estate bank account, joint account, or other).
   • An inventory or schedule of assets filed with the Surrogate’s Court and any estate accounting or final accounting filed when the estate is closed.
3. Search the Surrogate’s Court file.

   Probate files are public. Visit or contact the Surrogate’s Court in the county where the decedent lived. Ask for the estate file and look for the order approving the sale, the Letters, the inventory, and any accounting or petitions for settlement. Many Surrogate’s Courts will provide copies for a small fee. Directory and general Surrogate’s Court information is at: https://www.nycourts.gov/courts/surrogates/.

4. Review the closing documents.

   The closing statement shows the sale price and exactly how funds were distributed at closing: mortgage payoff, liens, real estate commissions, taxes, and net proceeds. The document will also show the name of the payee for the net proceeds (often an estate trust account or the executor’s escrow account).

5. Check whether proceeds were deposited into an estate account.

   Responsible fiduciaries normally place sale proceeds in a dedicated estate bank account. Ask for the bank account statements showing the deposit and subsequent withdrawals. Those statements show payments to creditors, the payment of taxes, fees to the attorney or real estate broker (if approved), and later distributions to beneficiaries.

6. Look for a formal accounting or petition for distribution.

   Before final distribution the executor/administrator may file an accounting or a petition to settle the estate with the Surrogate’s Court. That accounting itemizes assets received (including sale proceeds), expenses paid, and to whom distributions were made. Review this to see exactly how the money was allocated.

7. If you can’t get documents voluntarily — use court tools.

   Beneficiaries and interested parties can file a motion in Surrogate’s Court to compel the fiduciary to produce an accounting or to review the estate’s records. If you suspect improper handling (misappropriation, self-dealing, or unexplained distributions), the court can order an accounting and impose sanctions if the fiduciary breached duties.

Common scenarios and where the money goes

• Sale proceeds deposited to an estate account → used to pay funeral, executor fees (if approved), creditor claims, estate administration expenses, taxes, then distributed under the will or by intestacy rules (EPTL governs intestacy shares) — see EPTL index: https://www.nysenate.gov/legislation/laws/EPTL.
• House owned jointly with right of survivorship → proceeds usually go to the surviving joint owner and bypass probate (check the deed/title).
• House had a designated beneficiary or transfer-on-death instrument → proceeds may pass to the named beneficiary outside probate (verify the instrument or deed).
• Sale required court approval (e.g., minor heirs, real property that must be sold under court oversight) → the Surrogate’s Court file will show the order authorizing sale and the required accounting.

When to get an attorney involved

If the executor refuses to provide documents, the accounting looks incomplete, the sale was not properly authorized, or you suspect funds were diverted, see a probate attorney. An attorney can help you demand or compel a formal accounting, petition the court to surcharge (hold the fiduciary financially responsible) or remove the fiduciary, and protect your rights as an heir or beneficiary.

Where to learn more from New York courts and statutes

• New York Estates, Powers & Trusts Law (general statutory framework): https://www.nysenate.gov/legislation/laws/EPTL
• Surrogate’s Court Procedure Act (procedures for probate and administration): https://www.nysenate.gov/legislation/laws/SCPA
• NY Courts — Probate and estate administration guidance: https://www.nycourts.gov/courthelp/estate/index.shtml
• New York Surrogate’s Courts general information and directory: https://www.nycourts.gov/courts/surrogates/