What steps to take to find out where the sale proceeds from your dad’s house will go

Quick answer: To know exactly where sale proceeds will go in Rhode Island, you must determine how title to the house is held, whether the house is subject to a trust or probate, and what liens or debts must be paid. The closing statement from the title company or closing attorney will show the final distribution. You can also review probate records or obtain an accounting from a trustee. This article explains the common paths money follows and practical steps to get precise, document-backed answers.

Disclaimer

This is general information and not legal advice. I am not a lawyer. For advice about your specific situation, consult a licensed Rhode Island attorney or the local probate court.

Detailed answer

1. First, identify how the house is owned

Ownership determines whether the house goes through probate and who controls the proceeds.

• Sole ownership (only your dad on the deed): The house typically becomes part of your dad’s estate and may be administered through probate. Sale proceeds belong to the estate and must be used to pay estate expenses, liens, and debts before distribution to heirs or devisees.
• Joint tenants with right of survivorship or tenancy by the entirety: Ownership automatically passes to the surviving owner(s) on death. The surviving owner generally receives the property (so sale proceeds belong to the survivor), and the asset usually bypasses probate.
• Tenants in common: The deceased owner’s share becomes part of the estate and is handled under the will or by intestacy rules.
• Trust ownership: If the house is in a living trust, the trustee controls sale and distribution under the trust terms. Trust administration is private; the trustee should provide an accounting to beneficiaries.

2. Check for a will or a trust

If there’s a will, the executor named in it manages estate assets, including sale proceeds, under probate supervision. If there’s a trust, the trustee distributes proceeds per the trust rules. In Rhode Island, probate administration and trust administration follow state statutes and local probate court procedures — search Rhode Island General Laws and the probate court site for more detail: Rhode Island General Laws and Rhode Island Judiciary — Probate & Family.

3. Understand who gets paid first

When a house sells, the closing statement itemizes payments. Typical priority order:

1. Mortgage payoff(s) and recorded liens (mortgage lenders, tax liens, mechanic’s liens).
2. Closing costs (title, escrow, real estate agent commissions, recording fees).
3. Costs of sale that the estate or owner agreed to pay (repairs, broker fees).
4. Estate-level expenses if the property is part of an estate (probate fees, attorney fees, funeral expenses, administrative costs).
5. Creditors’ claims against the estate — Rhode Island probate law sets procedures and timeframes for filing claims in probate.
6. Balance (net proceeds) distributed to the person or entity entitled to them (surviving joint owner, beneficiary under the will or trust, or distributees under intestacy).

4. How to get the exact distribution details

Follow these steps to get a precise accounting of where the sale proceeds will go:

• Obtain the deed and title history: Visit the city or town land records office or online recorder to see the deed, ownership form (joint tenants vs. tenants in common), and any recorded liens.
• Ask for a copy of the closing statement: The title company or attorney who handled the sale must produce the HUD-1/Closing Disclosure that shows exactly where each dollar went. If you are an heir or an interested party in probate, request it from the executor, closing attorney, or title company.
• Check the mortgage payoff statement and lien releases: The mortgage lender provides a payoff figure; the title company will show the payoff on the closing statement and should record lien releases.
• Review probate court records (if property went through probate): Probate files often include inventories, petitions to sell, receipts, and accountings. These public records show how the estate’s assets (including sale proceeds) were used. Contact the probate court in the city/town where your dad lived: Rhode Island Probate & Family Courts.
• If a trust holds the property: Request an accounting from the trustee. State law and the trust instrument determine how much the trustee must disclose to beneficiaries.

5. What to do if you can’t get records or you suspect mistakes

If the executor, trustee, or closing agent refuses to provide documents or you believe the proceeds were misapplied:

• Send a written request for the closing statement, payoff letters, and any trustee accountings. Keep copies.
• Contact the probate court clerk and ask how to request copies of the estate file or petition for an accounting.
• Consult a Rhode Island probate or real estate attorney — they can request records formally, file motions in probate, or bring other remedies.

6. Some Rhode Island legal concepts that commonly affect distribution

• Intestate succession rules determine distribution if there is no valid will. Rhode Island statutes set the order of heirs.
• Probate procedures control how executors notify creditors and dispose of assets.
• Trust administration rules affect whether beneficiaries receive accountings and distributions.
• Recorded liens and mortgage law determine payoff obligations at closing.

Helpful Hints

• Start with the deed: the deed shows owners and the type of ownership. That fact alone frequently answers whether proceeds pass outside probate.
• Ask the title company for the Closing Disclosure — it lists every payee and line-item deduction from the sale proceeds.
• Get certified copies of the death certificate; many institutions require them to release information or transfer funds.
• Search the local probate court online docket or visit in person to view estate filings (petitions to administer, inventories, accountings).
• If there is a trust, ask the trustee for a copy of the trust (if you are a beneficiary) and a written accounting of trust receipts and disbursements.
• Keep records: save emails, letters, closing documents, lender payoffs, and receipts for repairs or commissions — these prove how proceeds were used.
• Time matters: probate claim deadlines and procedures vary. If creditors or contests arise, act quickly and consider legal counsel.
• When in doubt, consult a licensed Rhode Island probate or real estate attorney to review documents and represent your interests.

For Rhode Island probate procedures and to locate the proper probate court in your area, see the Rhode Island Judiciary Probate & Family Courts page: https://www.courts.ri.gov/Courts/ProbateFamily/Pages/default.aspx. For statutory text and to research relevant Rhode Island laws (for example, statutes on wills, trusts, and estate administration), consult the Rhode Island General Laws: https://www.rilegislature.gov/Statutes/.

If you want, tell me which of these situations fits your facts (sole ownership, joint ownership, in a trust, or unknown) and I can outline the exact documents to request and the likely chain of payments for that scenario.