Ohio: What Happens to Leftover Money After My Parents’ Home Is Sold?

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.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

Detailed Answer

Short answer: In Ohio, whether leftover money from the sale of your parents’ home is distributed under your dad’s will depends on who actually owned the property at the time of death and how ownership was titled. If the home was part of your dad’s probate estate (for example, it was solely in his name or his ownership interest had to pass through probate), the sale proceeds become estate assets. The executor or administrator must pay valid debts and costs first, and any remaining funds are distributed according to your dad’s will. If the property passed automatically to someone else outside of probate (for example, to a surviving joint tenant), the proceeds typically do not become part of your dad’s probate estate and therefore are not distributed under his will.

How this works — common ownership scenarios in Ohio

  • Property solely in deceased’s name: If your dad held title only in his name, the home is generally part of his probate estate. An executor will sell or otherwise liquidate the asset if needed to pay debts and expenses. After creditor claims, taxes, and administration costs, leftover proceeds are distributed under the will. See Ohio law on wills and estate administration: Ohio Rev. Code Chapter 2107 (Wills) and Chapter 2117 (Administration of Estates).
  • Joint tenancy with right of survivorship (JTWROS): If the deed names your dad and another person (commonly the surviving spouse) as joint tenants with right of survivorship, the surviving joint tenant usually becomes the sole owner automatically at death. The property (and proceeds if it is later sold by the survivor) does not pass through probate and is not distributed under your dad’s will. See rules on conveyances and title: Ohio Rev. Code Chapter 5302 (Conveyances).
  • Tenants in common: If the deed lists owners as tenants in common, each owner has a separate share. Your dad’s share would pass through his estate and, after sale of the whole property (with the co-owner’s consent or through partition), his share of the proceeds would be distributed under his will.
  • Property held in trust or outside probate: If your dad placed the home in a living trust, or if a beneficiary designation or other nonprobate transfer applies, the trust or beneficiary controls distribution. In that case, the will does not control those assets.

Executor duties and creditor claims

If the home is part of the probate estate, the executor (personal representative) must follow Ohio probate law when managing sale proceeds. Typical steps include:

  1. Identify and notify creditors and pay valid claims and funeral expenses.
  2. Pay taxes, mortgage balances, and costs of administering the estate.
  3. After those obligations are satisfied, distribute the remaining estate funds according to the will.

These duties are governed by Ohio probate statutes and local probate court rules. See general probate administration guidance: Ohio Rev. Code Chapter 2117.

Common factual examples

Example 1 — Sole ownership: Dad owned the house alone. He died. The executor sells the house to pay debts. After creditor claims and costs are paid, $50,000 remains. That $50,000 is part of the estate and is distributed under the terms of your dad’s will.

Example 2 — Joint tenancy: The deed lists Mom and Dad as joint tenants with rights of survivorship. Dad died; ownership automatically vests in Mom. If Mom later sells the house, proceeds belong to Mom and do not pass under Dad’s will.

Example 3 — Tenants in common: Mom and Dad owned the property as tenants in common (each 50%). Dad died owning his 50% interest. The estate is entitled to Dad’s 50% share; the will controls that share’s distribution after probate matters are resolved.

Practical steps you should take

  • Get a copy of the deed from the county recorder to confirm how the property was titled.
  • Locate your dad’s will and any trust documents.
  • Contact the probate court in the county where your dad lived to determine whether an estate has been opened or whether one needs to be opened.
  • If the property appears to be estate property, expect the executor to marshal assets, pay debts, and follow probate procedures before distributing leftover money.
  • If you suspect the property passed outside probate (joint tenancy or trust), ask for a copy of the deed and the trust documents to confirm.

Helpful Hints

  • Confirm title early — the deed decides whether the home goes through probate.
  • Ask for an inventory from the executor — Ohio rules require an inventory of estate assets.
  • Be aware of creditor claim deadlines — the estate must give notice and resolve valid claims before distribution.
  • If the surviving spouse claims the property as joint tenant but the deed doesn’t clearly show survivorship language, seek legal help.
  • If the estate is small, Ohio may have simplified procedures — check with the local probate court.
  • Keep copies of death certificates, the deed, the will, mortgage statements, and any trust paperwork — these documents make resolving ownership much easier.

Where to read Ohio law

Relevant Ohio Revised Code chapters to review:

When to consult an attorney

Talk to a probate attorney if the title is unclear, if there is a dispute among heirs or the surviving spouse, if creditors are asserting large claims, or if you need help interpreting the will or trust. An attorney can explain how Ohio law applies to your exact facts and protect estate and beneficiary rights.

Disclaimer: I am not a lawyer. This article is for general information only and does not constitute legal advice. Laws change and every situation is different. For guidance specific to your case, consult a licensed Ohio attorney.

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.