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Detailed answer — what happens to money left after a house is sold and debts are paid (Rhode Island)

When a decedent’s house is sold as part of settling the estate, the net proceeds from that sale normally become part of the probate estate. The executor (or administrator) uses estate funds to pay valid debts, funeral expenses, taxes, and administration costs. After those priorities are satisfied, any remaining money generally becomes part of the residue of the estate and is distributed according to the will.

Key points under Rhode Island law you should know:

• Sale proceeds become estate assets: If the property is owned by the decedent in their name (not held in joint tenancy, not subject to a payable-on-death beneficiary, and not held in a trust), sale proceeds ordinarily enter the probate estate and are available to pay creditors and for distribution.
• Creditors and priority claims are paid first: Mortgages, taxes, and valid creditor claims have priority. The executor must identify and pay those claims before distributing any leftover funds to beneficiaries named in the will.
• Distribution under the will: After paying debts, taxes, and administration expenses, the executor follows the will’s directions. If the will leaves the residue to particular persons (for example, to the children, to the surviving spouse, or to named beneficiaries), the leftover money will be distributed according to those terms.
• Surviving spouse or family protections: Rhode Island law provides statutory protections that can affect distribution (for example, family allowances or elective shares for a surviving spouse). Those protections can reduce what beneficiaries under the will ultimately receive. See Title 33 of the Rhode Island General Laws for probate and estate rules: https://webserver.rilin.state.ri.us/Statutes/TITLE33/.
• Nonprobate assets are not controlled by the will: If the house was owned jointly with right of survivorship, held in a revocable trust, or the proceeds were payable to a named beneficiary, those proceeds may bypass probate and not be distributed under the will.
• If there is no will: If the decedent left no valid will, state intestacy rules determine who gets the leftover funds. The court will distribute according to Rhode Island’s intestacy rules in Title 33.

Typical steps the executor follows:

1. Open probate and have the will allowed by the probate court.
2. Inventory estate assets (including the house) and identify secured liens and debts.
3. Sell the house if necessary to pay debts or to carry out the terms of the will. Proceeds are deposited into an estate account.
4. Provide notice to creditors and allow the statutory claims period to run.
5. Pay creditors, taxes, funeral and administration expenses, and any statutory family allowances or elective-share amounts required by law.
6. After final accounting and court approval (if required), distribute the remaining funds according to the will (or intestacy rules).

Common complications to watch for

• If the house had a mortgage or tax lien, the sale must satisfy those secured debts first.
• Survivorship ownership (joint tenancy) or beneficiary designations often mean the property or proceeds avoid probate.
• Claims by creditors or ongoing disputes among beneficiaries can delay distribution for months or longer until resolved or allowed by the court.
• Family allowances or a surviving spouse’s elective share can change the portion of the estate that passes under the will.

Helpful hints

• Ask the executor for a copy of the probate filing, the inventory, and the estate accounting so you can see how the house proceeds were handled.
• Check whether the property was held jointly, in a trust, or had beneficiary designations—those affect whether proceeds go through probate.
• Confirm whether a mortgage, tax lien, or other secured debt attached to the property; sale proceeds first satisfy those liens.
• If you are the surviving spouse, ask about statutory protections (family allowance or elective share) that may affect distribution under Rhode Island law (Title 33: https://webserver.rilin.state.ri.us/Statutes/TITLE33/).
• If distributions seem delayed or unclear, consider requesting the probate court for an accounting or speak with a probate attorney to review your rights and the executor’s duties.
• Gather important documents early: the decedent’s will, mortgage statements, deed, bank and investment statements, and any beneficiary forms.
• Keep communication civil. Executors have fiduciary duties and must act in the estate’s best interest; asking for records and timelines is a reasonable first step.