How to find exactly where the sale proceeds from your dad’s house will go

Short answer: Track ownership and encumbrances (deeds, mortgages, liens), determine how title passes at death (will, trust, joint ownership, or intestacy), and follow the probate or trust administration steps. Contact the county register of deeds, the lender/title company, and the personal representative or trustee for documentation. This article explains the typical South Dakota procedures, key statutes, and practical steps you can take.

Detailed Answer

1. Who legally owned the house at your dad’s death?

Begin by confirming how title was held. Common possibilities:

• Owned solely in your dad’s name (probate likely required).
• Owned jointly with right of survivorship (passes automatically to the surviving owner).
• Held in a revocable trust (trustee controls distribution outside probate).
• Transferred on death / beneficiary deed (passes to named beneficiary without probate if valid).
• Owned subject to a mortgage or other liens (mortgage must be paid from proceeds or refinanced).

How title is held controls whether proceeds go to a personal representative (executor/administrator), a surviving joint owner, a trustee, or a named beneficiary.

2. Where to look for documentary evidence

• County Register of Deeds: pull the deed and recorded documents (mortgages, judgments, liens). In South Dakota, deeds and liens are recorded in the county where the property sits.
• Probate court records: if a probate estate is opened, filings (petition, inventory, order of distribution) will show how the court directed sale proceeds to be applied.
• Title company or closing attorney: the title company handling the sale generates a settlement statement showing payoff amounts and net proceeds.
• Mortgage lender and taxing authorities: payoff statements from the mortgage holder and proof of current taxes will show amounts subtracted from sale proceeds.
• Will, trust documents, beneficiary deeds, or designated transfer-on-death forms: these control distribution outside or inside probate.

3. If the property is in your dad’s name alone: probate usually controls distribution

When the decedent died owning the house solely, South Dakota’s probate procedures apply. The personal representative must collect assets, pay valid debts and funeral expenses, and then distribute what remains to the heirs under the will or under intestate succession if there is no valid will. South Dakota’s probate code is codified in Title 29A of the South Dakota Codified Laws; see the Unified Probate Code provisions here: SDCL Title 29A (Probate).

4. How sale proceeds are used during administration

Typical order of payout from sale proceeds (after closing) in South Dakota:

1. Pay off the mortgage and liens recorded against the property (mortgage lienholders have priority on the real estate). The title company’s payoff figures will show exact amounts.
2. Pay closing costs and real estate commissions (shown on the settlement statement).
3. Pay property taxes and assessments due.
4. Pay valid creditor claims against the estate (creditors must timely present claims during probate). See the probate code for creditor claim procedures: SDCL Title 29A.
5. Pay estate administration expenses (attorney fees, personal representative fees if allowed, court costs).
6. Distribute any remaining net proceeds to the person(s) entitled under the will or the rules of intestate succession.

5. If the house passes outside probate

If ownership transfers to a joint owner, a trustee, or a named beneficiary (for example, by a beneficiary deed), the transfer happens outside probate, and the party who becomes owner controls the sale proceeds. You will need to request the closing settlement statement from whoever sold the property (trustee, joint owner, or beneficiary) to learn how proceeds were applied.

6. What documentation you can request

• Settlement statement / closing disclosure (itemizes payoffs, commissions, taxes, net proceeds).
• Mortgage payoff statement(s).
• Recorded deed and lien searches from the county register of deeds.
• Probate filings: petition, letters testamentary or letters of administration, inventory, accountings, and the final order of distribution (if estate went through probate).
• Trust accounting if a trustee handled the sale (trustees often must provide an accounting to beneficiaries).

7. Timelines and creditor priority

South Dakota probate law requires notice to creditors and allows time for claims. Personal representatives generally must pay valid creditors before distributing assets. If you suspect unpaid debts that might reduce the proceeds, ask for the estate’s accounting or check probate files. Reference: SDCL Title 29A (probate procedures and creditor claims).

8. Practical steps to find out where the proceeds went

1. Check the county register of deeds to confirm the recorded owner and any recorded transfer-on-death deed, mortgage, or liens.
2. Ask the closing/title company for the settlement statement from the sale; if you do not know the company, the deed or county records often list the closing or conveyancing attorney.
3. If probate was opened, contact the probate clerk in the county where your dad lived and ask for copies of filings (petition, letters, inventory, accountings, final distribution order).
4. If there is a will, contact the named personal representative (executor). If the property was in a trust, contact the trustee and ask for the trust accounting relevant to the sale.
5. Request payoff statements from any mortgage or lienholders listed in the title run.
6. Review the estate accounting or request one in writing from the personal representative or trustee. Beneficiaries and heirs typically have the right to an accounting during probate or trust administration.
7. If you face resistance or suspect misconduct (e.g., funds diverted improperly), consult an attorney experienced in probate/trust litigation for South Dakota remedies, including filing a petition in probate court for an accounting or removal of a personal representative or trustee. See probate rules in SDCL Title 29A.

9. Who has rights to ask questions and receive documents?

If you are a named beneficiary in a will or trust, or an heir at law under intestacy, you generally have the right to information about estate administration. If you are not sure of your status, check the will or consult the probate file to confirm whether you are listed as a beneficiary or next of kin.

Helpful Hints

• Start with the county register of deeds. It’s public and often available online for basic title and lien searches.
• Ask for the full closing/settlement statement — it shows exactly how sale proceeds were allocated.
• If a mortgage exists, get a payoff statement in writing; the mortgage holder’s lien must be satisfied at closing unless the buyer assumes it.
• If probate is open, request a copy of the personal representative’s accounting and the court’s final distribution order.
• Be polite but persistent with the personal representative or trustee; they may not know what documentation beneficiaries expect and often will provide it when asked in writing.
• If documentation is refused or you suspect misapplication, a probate attorney can file a motion for accounting or other relief in probate court.
• Keep copies of all requests and responses (email or certified mail) — they form part of the record if a dispute arises.
• Remember the order of priorities for payment: recorded liens and mortgages, closing expenses, taxes, allowed creditor claims, then distributions to heirs/beneficiaries.

Resources

• South Dakota Codified Laws — Title 29A (Probate/Uniform Probate Code): https://sdlegislature.gov/Statutes/Codified_Laws/Default.aspx?Title=29A
• South Dakota Unified Judicial System (court and probate resources): https://ujs.sd.gov/
• County Register of Deeds (search for the recorder in the county where the property is located). Most county websites allow online searches for deed and mortgage records.

Disclaimer: This is general informational content and not legal advice. Laws change and every situation is different. For advice tailored to your facts or to take legal action (for example, to request an accounting, object to distributions, or pursue removal of a personal representative or trustee), consult a licensed South Dakota attorney experienced in probate and estate matters.