Detailed Answer

When a house owned by a deceased person is sold, the final destination of the sale proceeds depends on how the property was owned, whether the owner left a will or a trust, and whether there are liens, taxes, or creditor claims against the estate. Under Alaska law, administration of a deceased person’s estate generally follows the Alaska Probate Code (Title 13). For the precise statutory framework, see Alaska Statutes, Title 13 (Probate): https://www.akleg.gov/basis/statutes.php?title=13. For court procedures and local probate information, see the Alaska Court System: https://courts.alaska.gov.

1. First figure out how title passed at death

• Sole ownership: If the deed listed only your parent, the house is part of the probate estate unless it was transferred by a non-probate device (see below). The personal representative (executor or administrator) usually must sell the property under probate authority and then pay debts and distribute the remainder according to the will or Alaska intestacy law.
• Joint tenancy with right of survivorship: If the house was held in joint tenancy, the surviving joint owner typically receives the property automatically at death and the proceeds from any sale by that survivor are outside probate.
• Trust ownership: If the property was owned by a revocable living trust, the trustee controls sale and distribution according to trust terms; the proceeds stay in the trust and pass to named beneficiaries outside probate.
• Beneficiary/transfer-on-death designation: If a transfer-on-death (TOD) deed or similar device was used, the named beneficiary receives the property at the decedent’s death outside probate (if Alaska recognizes that device and it was properly executed).

2. If the property is part of probate, how do proceeds get used?

When the personal representative sells estate real property, sale proceeds generally flow through the estate. Typical order of payments from the proceeds:

1. Costs of sale and closing costs (real estate commission, escrow/title charges).
2. Paying off secured debts recorded against the property (mortgages, tax liens, recorded judgments) — secured creditors are paid from the sale at closing.
3. Administrative expenses of the estate (court costs, probate filing fees, costs to preserve and sell property, appraisal fees).
4. Executor or personal representative fees and attorney fees (Alaska law allows for reasonable compensation; review the probate court filings for exact claims).
5. Creditor claims against the estate (unsecured creditors) — within the time limits set by the probate code.
6. Taxes (estate or income taxes attributable to the estate) and final property/tax adjustments.
7. Distribution of the remaining funds to beneficiaries under the decedent’s will or, if no will, under Alaska’s intestacy rules.

Because secured liens attach to the property, buyers and closing agents normally ensure liens are satisfied before or at closing, so those claimants are often paid directly from sale proceeds at closing.

3. How to confirm exactly where the money will go in your case

1. Get the deed and title history: Search the local recorder/land records office for the deed, mortgage, and any recorded liens. The deed shows how title was held at death (sole, joint, trust, etc.).
2. Ask the personal representative or trustee for documents: Request a copy of the will (if any), trust instrument (if any), letters testamentary or letters of administration, and any inventory or accounting filed with the probate court. Personal representatives have duties to provide information about the estate.
3. Review the probate court docket and filings: If the estate is being administered in Alaska Superior Court (probate division), filings will show petitions to sell real property, orders authorizing sale, creditor claims, and accountings. Use the Alaska Courts website or contact the local probate clerk to access the docket or filed documents: https://courts.alaska.gov.
4. Obtain the closing statement (HUD-1/Closing Disclosure): The settlement statement for the sale itemizes all payoffs, liens satisfied at closing, costs of sale, and net funds disbursed. This document shows exactly what was paid and to whom.
5. Look for a final accounting or distribution order: In probate, the personal representative usually files a final accounting or petition to distribute the remaining funds. The court’s final order (if the court reviewed/disallowed fees or claims) will show the authorized distribution to beneficiaries.

4. Practical obstacles and common complications

• Some sales occur before formal probate opens (for example, a surviving joint owner sold the home). If so, proceeds may have bypassed probate entirely and gone to the survivor.
• Unknown creditors or tax liens can arise. A title search and the closing statement are the best way to confirm who was paid at sale.
• If the personal representative is uncooperative, the probate court can compel production of records or approval of an accounting.

5. When to consult a lawyer

If you cannot get clear answers from the personal representative, the closing agent, or public records, or if you suspect improper handling of funds (misapplied proceeds, failure to pay creditors, improper distributions), consult a probate attorney licensed in Alaska. They can review the title, probate filings, and closing documents and, if necessary, petition the court to compel an accounting or to recover improperly distributed funds.

Helpful statutory and court resources (Alaska):

• Alaska Statutes, Title 13 (Probate): https://www.akleg.gov/basis/statutes.php?title=13
• Alaska Court System (probate information and contact for local clerks): https://courts.alaska.gov

Helpful Hints

• Start with the deed and the county recorder—title reveals a lot. Contact the recorder where the property sits (city or borough clerk/recorder).
• Ask for the closing statement. That single document usually shows exactly who received what from the sale.
• Request copies of the will, trust, letters of appointment, and any probate court orders from the personal representative or probate clerk.
• Get a title search if you suspect undisclosed liens or claims. Title companies can show recorded mortgages, judgments, and tax liens.
• Find the probate case docket online or at the local superior court—look for petitions to sell property and final distribution orders.
• Keep organized copies of all documents you collect (deed, will, closing statement, probate filings, correspondence).
• If you are a beneficiary and the personal representative is not responsive, ask for a formal accounting in writing and set a reasonable deadline; if you still do not receive information, consult a lawyer about filing for an accounting in court.

What to ask the personal representative or closing agent

• Was the property sold as estate property or by a surviving owner outside probate?
• Can you provide a copy of the deed, closing statement, and any court order authorizing the sale?
• Which liens or mortgages were paid from the sale proceeds? Please provide payoff statements.
• Has a final accounting or petition for distribution been filed with the probate court? If so, where can I see it?

If you need more help: Collect the deed, the closing statement, and any probate filings you can find. An Alaska probate attorney can review them and explain the specific distribution under state law and the estate’s documents.

Disclaimer: This is general informational content, not legal advice. It does not create an attorney-client relationship. For advice about your specific situation, contact a licensed Alaska attorney.