Detailed Answer
This explains how you can trace exactly where the money from a house sale goes under Washington law. The path that sale proceeds follow depends on how the property was owned and whether the house was sold inside probate, outside probate (for example, by a surviving joint owner or a trustee), or under a transfer-on-death arrangement. Below are the common scenarios, the steps to verify where the money went, and the Washington law resources you can consult.
Common scenarios and where proceeds typically go
- Sold by the personal representative (executor) in probate. If the decedent’s estate is being administered in probate, the executor or personal representative usually must obtain court authority to sell estate real property (or rely on power in the will). Net sale proceeds are deposited to the estate bank account, used to pay mortgages, liens, estate expenses, attorney fees, taxes, and valid creditor claims. Any remaining balance is distributed to beneficiaries according to the will or, if no will, according to Washington’s intestacy rules. See RCW Title 11 for Washington’s probate code: https://app.leg.wa.gov/rcw/default.aspx?cite=11.
- Property in a living trust. If the house was owned by a revocable living trust, the trustee controls sale proceeds and must follow the trust terms. Proceeds remain trust assets and are distributed to beneficiaries per the trust instrument.
- Joint tenancy or community property with right of survivorship. If the house was held as joint tenants with right of survivorship (or community property with right of survivorship), ownership normally transfers automatically to the surviving owner outside probate. The surviving owner receives the proceeds when they sell.
- Transfer-on-death deed (TOD). A TOD deed transfers title on death to the named beneficiary outside probate. The beneficiary receives the proceeds on sale.
How to find exactly where the sale proceeds went — step by step
- Identify how the property was titled. Go to the county auditor/recorder’s online records and pull the deed for the property. Look for wording such as “joint tenants,” “with right of survivorship,” a trust name, or a transfer-on-death (TOD) designation. The recorded deed tells you the legal owner at death or after.
- Check for a probate case or trust administration. Search the Superior Court records in the county where the decedent lived or the property sits. Probate filings are public records. You can find court locations and links at the Washington Courts directory: https://www.courts.wa.gov/court_dir/. If there is a probate case, pull the docket and these key documents: petition for probate, letters testamentary (or letters of administration), order authorizing sale, inventory and appraisal, notice to creditors, accounting, and the final distribution order.
- Ask the personal representative or trustee for documents. If the estate is in probate, the personal representative should provide (or the court will have) the closing statement from the sale (HUD-1 or settlement statement), a bank statement showing deposit of proceeds to the estate account, and the distribution accounting showing who was paid and when. If a trustee sold the house, ask for the trust accounting and the sale settlement statement.
- Review closing and accounting documents. The settlement statement will show gross sale price, real estate commissions, taxes, mortgage payoff, liens, and net proceeds. The estate accounting will show how the net proceeds were applied. Together they let you trace where every dollar went.
- Confirm payments to creditors and liens. Recorded lien releases or mortgage payoff statements show that mortgage and other secured claims were paid from the proceeds. County recorder records will show releases of recorded liens.
- If there’s no probate case, check for other transfer mechanisms. If there’s no probate record, verify whether the property passed to a joint owner, TOD beneficiary, or trustee. That person or entity will control the proceeds.
- When you can’t get answers, use court tools. If the estate is in probate and the personal representative won’t provide an accounting, you can ask the probate court to compel an accounting or to review transactions. Washington’s probate statutes authorize court supervision of estate administration (see RCW Title 11): https://app.leg.wa.gov/rcw/default.aspx?cite=11.
Relevant Washington statutes and rules
Key state law areas that govern these issues include the probate code (Title 11 RCW) and the intestate succession provisions that control when there is no valid will (see chapter 11.04 RCW). For an overview of chapter listings and text, see:
- RCW Title 11 (Trusts, Estates, and Protective Proceedings): https://app.leg.wa.gov/rcw/default.aspx?cite=11
- Intestate succession rules: https://app.leg.wa.gov/rcw/default.aspx?cite=11.04
When to get help from an attorney
Consider hiring an attorney if:
- The personal representative refuses to provide documents or an accounting.
- You suspect misuse of estate funds or missing proceeds.
- Title records are unclear or you believe the property passed under a trust or TOD deed you cannot access.
- Disputes arise among heirs or beneficiaries.
An attorney can file a petition with the probate court to compel an accounting, seek turnover of funds, or obtain court supervision of a sale and distribution.
Timing note: Probate and estate accounting can take months to complete. Creditors have a limited time to file claims. The court-approved final distribution will show the final destination of estate funds.
Disclaimer: This information is educational only and not legal advice. It does not create an attorney-client relationship. For advice about your particular situation, consult a licensed Washington attorney.
Helpful Hints
- Start with the recorded deed at the county auditor’s office to learn how the property was titled.
- Search the county Superior Court probate docket for filings—those documents show sales, orders, and distributions.
- Ask for the sale’s closing statement, the estate bank account statement, and the final probate accounting; those documents trace the money flow.
- If the property was in a trust, request the trust instrument and the trustee’s accounting.
- Keep copies of all records you collect: deeds, lien releases, sale settlement, bank statements, and court orders.
- If the personal representative will not cooperate, you can petition the probate court to compel an accounting or seek enforcement.
- When in doubt, consult a Washington probate attorney to review the documents and, if needed, represent you in court.
- Use the Washington Courts directory to find the correct Superior Court clerk where the probate would be filed: https://www.courts.wa.gov/court_dir/.