Detailed Answer
Short answer: If the house is part of your dad’s probate estate, any net money left after the house is sold and all valid debts, liens, taxes, and administration costs are paid becomes estate property and will be distributed according to your dad’s will (subject to statutory allowances and creditor claims). If the house passed outside probate (for example, was owned jointly with right of survivorship, held as tenancy by the entirety, or had a valid beneficiary/transfer-on-death designation), the sale proceeds may not be part of the probate estate and therefore may not be distributed under the will.
How this works under Virginia law (plain language)
Under Virginia law, when a person dies the things they owned do one of two things:
- Pass outside probate automatically (nonprobate property), or
- Become part of the probate estate and are handled by the executor or personal representative.
If the house is probate property (for example, the deed shows your dad as the sole owner), the executor can sell the house during estate administration with court approval or under authority granted by the will or statutes. The money from that sale becomes estate cash. The executor must use estate cash to pay:
- the mortgage or other liens secured by the house;
- funeral expenses, valid creditor claims, and taxes (including income and possibly federal estate tax if the estate is large); and
- administration costs such as attorney and executor fees and court costs.
After valid debts, claims, and administrative expenses are paid and creditor claim deadlines have run, the remaining cash is distributed according to the terms of the will. If your dad’s will leaves the residuary estate or specifically directs how cash is to be split, the executor follows those terms when distributing the leftover funds.
When sale proceeds might not follow the will
The sale proceeds may not be part of the probate estate (and so would not be governed by your dad’s will) if any of the following apply:
- The house was owned jointly with a right of survivorship or as tenancy by the entirety. The surviving co-owner typically becomes the sole owner automatically.
- The property had a valid beneficiary designation or transfer-on-death deed that named someone other than the estate as recipient.
- The sale was by a surviving joint owner exercising their ownership rights, not by the executor acting in probate.
Important procedural steps the executor must follow
- Identify whether the house is probate property by checking the deed and title.
- Inventory estate assets and file necessary paperwork with the circuit court handling probate.
- Give notice to creditors and allow time for claims to be filed.
- If selling real estate, obtain court approval where required or follow statutory procedures set out in Virginia’s probate code.
- Pay liens, creditor claims, taxes, and administration costs from estate funds.
- Distribute any remaining funds to beneficiaries according to the will once administration is complete.
Hypothetical examples
Example A (probate property): Dad owned the house solely. The executor sells the house for $300,000. There is a $100,000 mortgage, $10,000 in funeral and probate costs, and $5,000 of valid creditor claims. After paying those amounts ($115,000) and the mortgage ($100,000) out of sale proceeds, the net leftover—minus any additional fees or taxes—is estate cash. That leftover is distributed under the will to the named beneficiaries.
Example B (nonprobate transfer): The house was titled jointly with a surviving spouse as joint tenants with right of survivorship. When dad died, the spouse automatically owned the house. If the spouse sells the house, the sale proceeds belong to the spouse and generally do not become part of dad’s probate estate or get distributed under the will.
Where to look in Virginia law and court resources
Virginia’s probate and estate rules are in Title 64.2 of the Code of Virginia. For general guidance on probate procedures in Virginia, see the Code and court resources:
- Code of Virginia, Title 64.2 (Wills, Trusts, and Administration of Estates): https://law.lis.virginia.gov/vacode/title64.2/
- Virginia Courts – probate information and local circuit court contacts: https://www.vacourts.gov/courts/circuit/probate.html
Common complications to watch for
- Disputed ownership or unclear title can delay sale and distribution.
- Unpaid creditors can assert claims against proceeds during the probate claims period.
- Improper sales (by someone without authority) can lead to lawsuits and reversal or damages.
- Surviving spouse rights, homestead exemptions, or family allowances may affect how much is available for distribution.
Next practical steps
- Check the deed and title to determine how the house was owned.
- Ask the executor for a copy of the estate inventory and any probate filings.
- If you suspect the sale was wrongful or the distribution is incorrect, consult an attorney experienced in Virginia probate law promptly.
Disclaimer: I am not a lawyer. This information is educational and does not constitute legal advice. For advice specific to your situation, consult a licensed Virginia attorney who handles probate and estate matters.