Detailed Answer
This answer explains how money left after selling a parent’s home is handled under South Carolina law. The short answer: usually, yes—if the house is part of your father’s probate estate, net sale proceeds become estate assets and are distributed according to your father’s will (after lawful debts and expenses are paid). But several common exceptions can keep the sale proceeds out of the probate estate. Whether the leftover money goes out under the will depends on how title was held, whether the property passed outside probate, and how the sale occurred.
How it normally works when the house is part of the probate estate
If the decedent (your father) owned the house solely in his name and did not place it in a trust or name a beneficiary who takes by operation of law, the house is part of his probate estate. The personal representative (executor or administrator) has authority under South Carolina probate law to marshal assets, sell estate property if needed, pay valid debts and expenses (mortgage, taxes, funeral, probate costs, attorney fees), and then distribute any remaining funds to beneficiaries according to the will. The net proceeds from a sale of estate property are treated as cash in the estate and distributed under the will after creditor claims are resolved and statutory allowances are paid. For the governing rules on estate administration and duties of personal representatives, see South Carolina Code Title 62 (Probate Law): https://www.scstatehouse.gov/code/title62.php.
Common exceptions — when sale proceeds do NOT follow the will
- Joint ownership with right of survivorship: If the home was held jointly (joint tenancy) or as tenancy by the entireties with a surviving owner, the property typically passes automatically to the surviving co-owner outside of probate. In that case, proceeds (if the surviving owner sells it) do not become part of your father’s estate and do not get distributed under his will.
- Trust ownership: If the house was owned by a living trust, the trustee controls sale and distribution under the trust terms. Trust assets usually avoid probate and do not pass under the will.
- Property with a designated payable-on-death or transfer-on-death beneficiary: Some assets pass directly to named beneficiaries and bypass probate.
- Security interests and liens: If there is a mortgage or lien, the sale proceeds must first satisfy the secured creditor. That can significantly reduce or eliminate any leftover for the estate.
- Transfers prior to death: If the decedent transferred the property before death (deed to someone else, gift, etc.), the property may be outside the estate.
How creditor claims and expenses affect distribution
The personal representative must identify and pay valid creditor claims and estate administration costs before distributing assets to beneficiaries. That typically includes mortgages, property taxes, funeral expenses, attorney and executor fees, and any approved creditor claims. Only after lawful claims and statutory allowances are paid will remaining funds be available for distribution under the will.
Examples (hypotheticals)
Scenario A: Father owned the house alone. The executor sells the house for $250,000, pays off a $150,000 mortgage, $10,000 in taxes and closing fees, $7,500 in funeral and probate expenses, and $2,500 in attorney and executor fees. The remaining balance (about $80,000) becomes estate cash and will be distributed according to the will once creditor claim procedures are complete.
Scenario B: Father owned the house jointly with the mother as joint tenants with rights of survivorship. The father dies; the mother becomes sole owner automatically. If the mother sells the home, the sales proceeds belong to her and are not distributed under the father’s will.
What to check right now
- Look at how the deed lists ownership: sole ownership, joint tenancy, or tenancy by entireties.
- Check whether the home is titled in a trust or whether there is a transfer-on-death beneficiary.
- Ask the personal representative for an estate inventory and accounting showing sale proceeds, debts paid, and proposed distributions.
- Confirm any mortgages or liens on the property—these are paid first from sale proceeds.
Practical steps and next actions
- Request copies of the deed and the recorded will from the personal representative or the probate court.
- Ask for the estate accounting and closing statement showing the sale price, payoff amounts, costs, and remaining balance.
- If you suspect the property passed outside probate (joint title, trust), obtain a copy of the deed or trust documents to confirm.
- If you think the sale or accounting is improper, speak with a South Carolina probate attorney. They can advise whether the personal representative followed legal procedures and whether you have grounds to challenge distributions.
Helpful Hints
- Keep documents: death certificate, deed, mortgage statements, and a copy of the will.
- Get any accounting in writing. Personal representatives must provide reports; review them carefully.
- Ask whether the sale was authorized by the will or by the probate court (some sales require court approval).
- If you are a beneficiary, you generally have the right to a full accounting before distribution.
- Time frames and notice requirements vary. If you have questions about deadlines for creditor claims or contesting distributions, consult a probate attorney promptly.
Disclaimer: This information is educational only and not legal advice. It describes general principles of South Carolina probate practice; it does not create an attorney-client relationship. For advice about your specific situation, consult a licensed South Carolina attorney who handles probate and estate matters.