What happens to leftover sale proceeds after a parent’s home is sold in Washington?

Short answer: It depends on how the house was titled and whether the sale happened inside probate or outside of it. If the home was part of your dad’s probate estate, the personal representative (executor) must pay debts, taxes, and administration costs from the sale proceeds and then distribute any remaining money according to your dad’s will. If the house passed outside probate (for example, to a joint owner with right of survivorship or under a community‑property‑with‑right‑of‑survivorship designation), the sale proceeds go to the nonprobate owner and are not controlled by the will.

Detailed Answer — How Washington law treats proceeds from a sold home

This answer assumes no unusual facts (like fraud, pending lawsuits, or special trust arrangements). Always check title records and the will to see how the property was owned or intended to pass.

1. Was the house part of the probate estate?

If the house was owned solely by your dad in his name when he died, it is typically estate property and will go through probate. The person appointed by the court as personal representative must marshal assets, pay valid creditor claims, pay taxes and administration expenses, and then distribute the remainder according to the will. In that typical probate situation, sale proceeds are estate funds and will be distributed under the will after payment of debts and costs.

Relevant law and resources about probate are in Washington’s probate statutes: see Washington Revised Code, Title 11 (Probate) for the legal framework governing administration and distribution: RCW Title 11 — Probate.

2. Did the property pass outside probate?

If the home did not belong solely to your dad at death, the outcome can change substantially:

• If the deed named a joint tenant or joint tenants with right of survivorship, the surviving joint owner typically takes the property automatically when a co‑owner dies. That transfer happens outside probate and the property (or sale proceeds) does not flow under the decedent’s will.
• Washington is a community property state. If the property was held as community property with right of survivorship, it likewise passes to the surviving spouse outside probate. See Washington statutes addressing property and marital rights at RCW Title 26 — Domestic Relations (community property provisions).
• If the house was held in a trust, the trust terms control distribution; the will normally does not affect trust property.

In these outside‑probate cases, the sale proceeds belong to the surviving co‑owner or the trust beneficiaries and are not distributed under your dad’s will.

3. If the personal representative sells the house during probate, how are proceeds handled?

When a personal representative sells estate property under court authorization or under statutory authority, the proceeds are estate funds. The rep must pay:

• administration expenses (court costs, executor fees if allowed);
• funeral costs and taxes; and
• valid creditor claims (credit cards, medical bills, mortgages, liens).

After those payments, the remaining balance becomes part of the residue of the estate and is distributed according to the will. The representative must keep records and provide an accounting to the court and beneficiaries.

4. What if creditors exhaust the proceeds?

If debts and expenses exceed available funds from the sale and other estate assets, the estate may be insolvent. The estate pays creditors according to priorities in state law, and heirs/beneficiaries under the will receive nothing (or only a reduced share).

5. Practical checks you should make

• Look up the deed in the county recorder’s office to confirm how title was held (sole owner, joint tenants, community property with right of survivorship, etc.).
• Ask whether a probate case has been opened and whether someone is serving as personal representative. If probate is open, ask for a copy of the petition and any court orders.
• Request an accounting (estate inventory and receipts/disbursements) from the personal representative. Beneficiaries and interested persons generally have rights to information about estate administration under RCW Title 11 (probate rules).

Helpful Hints

• Check the deed first — title determines a lot. If the deed names a surviving owner with rights of survivorship, the will probably does not control the house or its proceeds.
• If the house was in a trust, contact the successor trustee. Trust assets bypass probate and follow the trust document.
• Ask for written documentation from the personal representative: inventory, creditor payments, closing statement for the sale, and proposed distribution plan.
• If you suspect the personal representative is mismanaging funds, beneficiaries can petition the probate court for an accounting or removal. See general probate rules at RCW Title 11.
• Keep records of communications and requests. Send requests in writing and keep copies.
• When in doubt, talk to a probate attorney. An attorney can check deeds, review the will, and explain whether the sale proceeds should be in the estate or paid to a nonprobate transferee.

Where to read the law yourself: Washington Revised Code, Title 11 (probate statutes) is the central place for probate administration and distribution rules: https://app.leg.wa.gov/RCW/default.aspx?title=11. For marital and property issues (community property, survivorship designations), see Title 26: https://app.leg.wa.gov/RCW/default.aspx?title=26.

Final practical example (hypothetical): Dad owned the house in his name alone and died. The personal representative sells the home for $300,000, pays off a $200,000 mortgage, $20,000 in valid creditor claims, and $10,000 in administration costs and taxes. The remaining $70,000 is estate money. That $70,000 must be distributed according to the will (for example, to named beneficiaries) after the rep follows probate procedures and accounting. If instead the deed showed dad and mom as joint tenants, mom would receive the house or sale proceeds directly, and the will would not control those funds.

Note on timing: Estates often take months to a year (or longer) to close. Creditors must be notified and given time to present claims. The personal representative should not distribute leftover funds until creditor deadlines and court approvals are satisfied.

Disclaimer: I am not a lawyer and this is not legal advice. This article explains general Washington probate concepts for educational purposes only. For advice about a specific situation, consult a licensed Washington probate attorney.