Detailed answer — tracing sale proceeds from a decedent’s house in West Virginia
This page explains, in plain language, how to find out exactly where the money from the sale of your dad’s house went under West Virginia law. It assumes you have little or no legal background and walks through the likely steps and documents you can inspect. This is educational information only and not legal advice.
Who controls the sale proceeds?
Where the sale proceeds go depends on how the property was owned and whether the decedent’s estate is being administered through probate:
- If the property was owned jointly with another person with rights of survivorship, the surviving co-owner usually receives ownership automatically and sale proceeds normally go to that co-owner (not to the probate estate).
- If the property had a designated beneficiary (for example, a transfer-on-death deed), the beneficiary may take outside probate and receive the proceeds.
- If the property remained in your dad’s name and the executor/personal representative sold it as part of probate administration, the sale proceeds generally become estate assets. The personal representative must use those funds to pay valid debts, taxes, funeral and administration costs, then distribute the leftover to beneficiaries under the will or under West Virginia’s intestacy rules if there is no will.
What gets paid first — typical priority of distribution
When a sale occurs in the course of probate administration, West Virginia law and usual practice give priority to certain obligations. In practical order, proceeds will commonly be used to pay:
- Secured liens on the property (mortgage, tax liens, record judgment liens) — these are usually paid at closing from sale proceeds.
- Costs of sale and closing (real estate commissions, title or closing fees).
- Administration expenses: fees to attorneys and the personal representative, appraisal and court costs, and other necessary expenses.
- Funeral expenses and last medical bills (priority for certain claims may be set by statute and by creditor filing rules).
- Creditor claims allowed in the probate process (creditors must file claims or be barred by deadline).
- Taxes owed by the decedent or by the estate (state and federal death-related taxes, income tax liabilities, property taxes).
- Statutory allowances for surviving spouse/children where applicable, and finally
- Distribution to beneficiaries under the will, or under West Virginia intestacy rules if there is no valid will.
These priorities are governed by West Virginia probate rules and statutes on administration and creditor priority; see West Virginia Code, chapter governing decedent estates and probate administration: West Virginia Code – Chapter 44 (Probate/Decedent’s Estates).
Documents that show exactly where proceeds went
To trace the money, obtain these documents and review them carefully:
- Closing statement / Closing Disclosure (HUD-1 or similar). This shows the sale price and every line item paid out of proceeds at closing (mortgage payoff, seller’s closing costs, commissions, liens paid).
- Payoff statements for any mortgages or liens. These show how much was owed and to whom payoffs were sent.
- Probate court docket entries and orders (petition to sell real property, court approval of sale, order approving distribution). The court order will show how the personal representative was authorized to use proceeds and any distribution direction.
- Final accounting or inventory filed by the personal representative. Probate rules typically require an inventory and an accounting that lists receipts, disbursements, and proposed distributions.
- Ledger or bank statements for the estate account showing deposits of sale proceeds and subsequent disbursements.
- Deed or transfer documents recorded in the county land records (to see who got title after sale).
Where to get those documents in West Virginia
- Contact the closing agent or title company that handled the sale and ask for the final closing statement.
- Ask the personal representative (executor) for copies of the probate filings, the estate accounting, and the estate bank statements. The personal representative must keep records and provide them when lawfully requested or ordered by the court.
- Search the probate case file at the county court handling probate in the county where your dad lived. West Virginia courts and local clerks keep probate dockets and filings. See the West Virginia Judiciary website for local court information: West Virginia Courts.
- Search county land records or the county recorder/assessor’s office for recorded deeds and liens (to verify mortgage payoffs and lien releases).
- If you cannot obtain documents voluntarily, you can file a request in the probate court for an accounting or for copies of filings; the court can compel production.
Common scenarios and what they mean for proceeds
Here are short descriptions of likely outcomes depending on common situations:
- Property sold before probate was opened and the buyer closed directly with a title company: sale proceeds likely became part of your dad’s estate (if title remained solely in his name) and must be administered in probate.
- Property sold during probate with court approval: proceeds are estate property and must be used to pay debts and then distributed per the court order.
- Property owned jointly with right of survivorship or via TOD deed: proceeds may pass directly to the co-owner or named beneficiary and not into probate.
- There was a mortgage or recorded lien: those are paid from sale proceeds at closing as a first priority unless the buyer assumed the mortgage under specific terms.
What to do if you can’t get a straight answer
- Request the closing statement and a copy of the probate court docket in writing. Keep records of your requests.
- If the personal representative refuses to provide records, file a petition in the probate court for an accounting and for the court to review the distribution. The court can order production of documents.
- If you suspect improper diversion of funds, contact a West Virginia probate attorney and consider asking the court to remove or surcharge the personal representative if misconduct or mismanagement occurred.
When to consult a lawyer
Consult an attorney if any of these apply:
- You can’t get the relevant documents from the personal representative or closing agent.
- There are unresolved creditor claims or a dispute about who inherits.
- You suspect the personal representative misused estate funds or failed to follow court orders.
- You need help filing a motion with the probate court to compel an accounting, challenge a sale, or enforce your rights as an heir or beneficiary.
Helpful hints
- Start with the closing statement — it lists exactly what was paid out at sale.
- Get a certified copy of the probate court docket and any orders authorizing the sale.
- Check the county property records for lien releases and the recorded deed after sale.
- Ask for a written estate accounting that shows the sale proceeds deposited and each disbursement.
- Note deadlines: creditors must file on time in probate to get paid; if a claim deadline has passed it may be barred.
- If multiple people claim the funds, do not accept informal oral explanations — get court-approved accounting or written records.
- Keep copies of all requests and responses; dates and method of communication matter if you later go to court.