Disclaimer: This information is educational only and is not legal advice. For advice about your specific situation, consult a Virginia probate attorney.
Detailed Answer
When an estate sells a decedent’s house in Virginia, the personal representative (often called the executor) must collect the sales proceeds, pay valid estate expenses and debts, and then distribute the remainder to beneficiaries according to the will or Virginia probate law (Title 64.2 of the Virginia Code). For an heir or beneficiary who wants to confirm that their percentage share was calculated correctly, follow these steps.
1. Ask for the estate accounting and closing paperwork
Request copies of these documents from the personal representative:
- Sale closing statement (HUD-1 or Closing Disclosure) showing gross sale price, seller closing costs, commissions, title fees, prorations, and mortgage payoff.
- Mortgage & lien payoff statements.
- Receipts for estate expenses paid from sale proceeds (repairs, realtor commissions, advertising, insurance, utilities, estate taxes, funeral expenses if paid from estate).
- The estate inventory/appraisement and any intermediate accountings filed in probate court.
- The will (if any) or the court’s intestacy determination if there was no will.
2. Recreate the basic calculation
Do the math yourself using a simple, transparent formula:
Net sale proceeds available for distribution = Gross sale price − (seller closing costs + realtor commissions + title fees + repairs/holding costs + mortgage & lien payoffs + taxes attributable to sale + any other valid estate expenses).
Then apply the distribution rule under the will or Virginia’s intestacy rules (see Title 64.2): if the will gives percentage shares, multiply the net distributable proceeds by your percentage share. If the will directs specific distributions, follow those directions before dividing any residue.
Example (hypothetical): House sold for $300,000. Seller costs and payoffs total $60,000 (including mortgage payoff of $40,000 and $15,000 realtor/title/closing costs and $5,000 repairs/unpaid bills). Net distributable = $240,000. Your percentage share 25% → your amount = $60,000.
3. Watch out for common adjustments
- Mortgage and lien payoffs paid through escrow reduce gross proceeds and should be listed on the closing statement.
- Estate-level debts and administration expenses (valid bills, probate court costs, attorney fees, certain taxes) may be paid from the estate before distribution.
- Capital gains or estate tax issues generally do not reduce the gross sale proceeds distributed to heirs unless the estate pays those taxes from estate assets; consult a tax advisor for tax allocation questions.
- Sometimes a will directs that certain expenses be deducted before percentage division, or that beneficiaries share certain costs — check the will’s wording carefully.
4. Know your rights under Virginia law
Beneficiaries may request an accounting and copies of records from the personal representative. The Virginia Code governs estate administration under Title 64.2 (Administration of Estates). For general statutory text, see the Virginia Code, Title 64.2: https://law.lis.virginia.gov/vacode/title64.2/
The Virginia judiciary also provides probate procedure guidance here: https://www.vacourts.gov/courts/circuit/probate/index.html
5. If numbers don’t match: formal steps you can take
- Send a written, polite request to the personal representative asking for clarification and itemized backup for any amounts you don’t understand.
- If the reply is incomplete or unsatisfactory, request a formal accounting in probate court. A probate court can order the personal representative to file an account showing all receipts, disbursements, and distributions.
- If the accounting reveals negligence, fraud, excessive fees, or improper distributions, you can petition the court to surcharge (require repayment of losses), remove the personal representative, or seek other remedies. The court has authority under the probate statutes and rules to resolve disputes.
6. When to get professional help
If calculations are complicated (e.g., disputed credits, commingled assets, multiple property adjustments, or tax allocation questions), consider hiring a probate attorney or an accountant experienced with estates. An attorney can file motions, request a judicial accounting, and represent you in court if needed.
Helpful Hints
- Start by asking for the closing disclosure and an itemized estate accounting — many disputes resolve once records are shared.
- Look line-by-line at the closing statement: realtor commission, payoff amounts, prorations, repairs, and seller credits should all be visible.
- Confirm how the will defines the distribution: residuary percentage vs. specific gifts changes when you divide proceeds.
- Keep all communications in writing and keep copies. Written requests create a record for court if you need one.
- Get an independent appraisal if you believe the property sold for far less than fair market value; a low sale price can reduce everyone’s share and may be a basis to challenge the sale if misconduct is suspected.
- Ask whether estate taxes or final income tax liabilities were paid from sale proceeds. Tax allocation can affect net distributable funds.
- If the personal representative is distant or nonresponsive, the circuit court in the decedent’s county is where you request an accounting or other relief (see Virginia probate procedures at https://www.vacourts.gov/courts/circuit/probate/index.html).
For statutory provisions on estate administration, distribution, and related court powers, consult Title 64.2 of the Virginia Code: https://law.lis.virginia.gov/vacode/title64.2/
Remember: This article is informational only and does not create an attorney-client relationship or substitute for tailored legal advice. If you suspect miscalculation, mismanagement, or fraud, speak with a Virginia probate lawyer promptly.