Detailed Answer

Short answer: Who gets the money from selling a deceased parent’s house in Virginia depends on how the property was titled, whether the estate is being probated, whether there are mortgages or liens, and whether a will or trust controls distribution. The personal representative (executor/administrator) normally must collect the sale proceeds, pay debts and administration costs, then distribute the remainder to beneficiaries under the will or under Virginia’s intestacy rules. For the controlling statutes, see Virginia Code Title 64.2 (Wills, Trusts, Fiduciaries, and Decedents’ Estates): https://law.lis.virginia.gov/vacode/title64.2/

How the property’s title affects where proceeds go

• Owned jointly with right of survivorship: The survivor (joint owner) typically owns the property outright at death and sale proceeds pass directly to that survivor outside probate.
• Held in a revocable living trust: The trustee controls the sale and distributes proceeds per trust terms, outside probate.
• Owned solely in the decedent’s name: The property is part of the decedent’s probate estate. The personal representative must usually obtain court authority to sell, deposit proceeds into the estate account, pay valid claims, and then distribute the remainder.
• Tenants in common: Each co-owner has a share. A decedent’s share passes by will or intestacy; co-owners may need a partition or sale to realize value.

What happens to sale proceeds during probate

When the property is part of the probate estate, the usual flow is:

1. The court appoints a personal representative (executor or administrator).
2. The representative sells the property, often after court approval if required.
3. Sale proceeds go into the estate’s bank account.
4. The representative uses the estate funds to pay secured debts (mortgage, tax liens), funeral expenses, administration expenses (attorney fees, court costs), and valid creditor claims.
5. After paying debts and taxes, the representative distributes the remaining funds to beneficiaries under the will or under Virginia’s intestacy rules.

Relevant Virginia law on wills, estates, and administration is found at Title 64.2: https://law.lis.virginia.gov/vacode/title64.2/. For intestacy provisions (how property passes if there is no valid will), see Chapter 2: https://law.lis.virginia.gov/vacode/title64.2/chapter2/

How to find out exactly where the proceeds will go—step by step

Use this practical checklist to trace where the money will end up.

1. Find out how the house is titled: Look at the deed recorded in the land records at the circuit court clerk’s office in the county where the property sits. The deed shows names and ownership form (joint tenancy, tenants in common, sole ownership). Many clerk’s offices have searchable online land records.
2. Check for a trust or will: Ask family members for a will or trust. If you suspect a trust, look for a trust document or ask the trustee. A valid trust or survivorship title may keep the sale and distribution out of probate.
3. Contact the personal representative (executor/administrator): If probate is open, the clerk of the circuit court can tell you whether someone has been appointed and who it is. The personal representative controls the estate property and prepares the account showing receipts and distributions. The court file and inventories are generally public; request copies from the clerk.
4. Obtain the probate file and inventory: The probate docket or estate file contains the inventory and account that list assets, sales, expenses, creditor claims, and proposed distributions. Ask the circuit court clerk how to view or request estate records in that county.
5. Search for liens, mortgages, and tax records: A title search (either via the land records or through a title company) will show mortgages, tax liens, mechanic’s liens, or judgments that must be paid from sale proceeds prior to distribution. Check property tax records with the local tax assessor.
6. Review the creditor claims and payment priority: The personal representative must notify creditors and pay valid claims from estate funds. Secured creditors (e.g., mortgage) are typically paid from sale proceeds before unsecured creditors and beneficiaries.
7. Ask for the estate accounting or settlement statement: The PR should provide an accounting showing gross sale proceeds, closing costs, payoff amounts (mortgage, liens), administration expenses, taxes, and the net amount available for distribution.
8. Confirm distributions: Distribution follows the will’s instructions or, if no will, intestacy law. If you need clarification about an account or distribution, request itemized statements from the representative or file a request with the court to review the estate account.

Special situations to watch for

• Small estates / summary procedures: Virginia provides simplified procedures in limited situations that may allow transfer without full probate. If the estate qualifies, proceeds may move faster; check with the circuit court clerk.
• Pending mortgage or foreclosure: A mortgage holder can force sale or foreclosure; the mortgage must be paid out of proceeds or otherwise resolved before distribution to beneficiaries.
• Disputes over the will or title: If someone contests the will or title, the court may block distribution until the dispute resolves.

When to consider hiring an attorney

Consider hiring an attorney if any of the following apply:

• The title is unclear or the deed shows joint owners or trust language you do not understand.
• Creditors or mortgage holders threaten foreclosure or assert large claims.
• Someone is withholding the probate file or the personal representative won’t provide an accounting.
• There is a will dispute or sibling conflict over distributions.
• The estate involves complex tax, business, or out-of-state property issues.

Where to look for official documents and help

• Circuit court clerk where the property is located — land records and probate records.
• Local tax assessor’s office — property tax and assessed value records.
• Title company — complete title search and payoff figures for mortgages and liens.
• Virginia Code, Title 64.2 — laws on wills, probate, fiduciary duties, and intestate succession: https://law.lis.virginia.gov/vacode/title64.2/
• Virginia court self-help pages or clerk’s office for small estate and probate forms.

Common timeline and costs

The timeline depends on whether the estate is contested and whether probate is required. An uncomplicated probate and sale can take several months. Costs include real estate closing costs, payoff of mortgage(s), local transfer taxes (if any), personal representative and attorney fees (allowed by court), and costs of administration. The personal representative must account for these charges in the estate accounting.

Helpful Hints

• Start by checking the deed at the county circuit court clerk’s land records — that often answers the title question quickly.
• Ask the personal representative for a copy of the closing statement (HUD-1 or Closing Disclosure) showing gross and net sale amounts and payoffs.
• Request the estate inventory and final accounting from the clerk’s office if probate is open; these are primary sources showing exactly where funds went.
• Use a licensed title company for a full lien search before relying on net distribution figures communicated informally.
• Keep written records of communications and ask for written explanations of any deductions from sale proceeds.
• If you suspect mishandling, you can petition the circuit court to compel an accounting or to remove a personal representative for cause.

Disclaimer: This article explains general Virginia law and common procedures. It is educational only and not legal advice. For advice about a specific situation, consult a licensed Virginia attorney or contact the circuit court clerk where the property is located.