Short answer

If a person dies without a will (intestate) in Georgia, money from the sale of assets that belonged to the deceased becomes part of the estate. A court-appointed administrator must use estate funds (including sale proceeds) to pay funeral costs, taxes, and valid creditor claims. After those obligations are paid, the remaining funds are distributed under Georgia’s intestate succession rules to the deceased’s heirs (for example, a surviving spouse, children, parents, or other relatives) according to the Georgia probate code.

Detailed answer — step by step

1. Sale proceeds become estate property

When someone dies, ownership of the deceased’s property does not automatically vanish. If the decedent owned property that was sold either shortly before death or as part of estate administration after death, the cash from that sale is an estate asset. The personal representative (called an administrator when there is no will) controls estate assets under probate court supervision and must handle those assets for the benefit of creditors and heirs.

2. Administrator appointment and probate

Because there is no will naming an executor, someone (usually a close family member) must ask the probate court to appoint an administrator. The administrator gathers assets, which includes any sale proceeds, pays debts and expenses, and then distributes what remains. See Georgia probate procedures and rules in O.C.G.A. Title 53 (Descent and Distribution) and the probate statutes governing administration. For the official Georgia Code, see the Georgia General Assembly website: https://www.legis.ga.gov/ (search Title 53).

3. Paying expenses, claims, taxes, and allowances

The administrator must use estate funds to pay:

• Funeral and burial expenses,
• Reasonable administrator fees and attorney fees approved by the court,
• Valid creditor claims allowed by the probate court,
• Any applicable taxes (federal income taxes; Georgia has no state estate tax), and
• Statutory family allowance or exempt property if applicable.

Only after these obligations are satisfied may the administrator distribute the net proceeds to heirs.

4. Distribution under intestacy rules

Georgia law sets the order and shares of heirs when someone dies intestate. The exact split depends on which close relatives survive the decedent:

• If the decedent is survived by a spouse but no children or descendants, the spouse usually inherits everything.
• If the decedent is survived by a spouse and children who are also children of the spouse, the spouse often inherits all or a large share under the statutes.
• If the decedent has children from another relationship, the estate generally divides between the spouse and the children under rules in the code.
• If no spouse or descendants exist, parents or siblings may inherit.

For the specific rules and priority of heirs, consult O.C.G.A. Title 53 (Descent and Distribution). See: Georgia General Assembly — Title 53 (searchable): https://www.legis.ga.gov/

5. Small estate and simplified procedures

If the total estate value (including sale proceeds) is small, Georgia provides simplified procedures that let heirs collect certain assets without full probate. These procedures vary by asset type and value, and some financial institutions allow payment on presentation of an affidavit supported by a short waiting period. Check with the local probate court about small-estate rules and required affidavits.

6. Practical example

Hypothetical: A decedent owned a car and some antiques. The administrator sells the car and antiques for $20,000 total. The estate owes $3,000 in funeral costs, $2,000 in allowed creditor claims, and $1,000 in administrative fees. That leaves $14,000 in net proceeds. Under Georgia intestacy rules, the administrator would distribute that $14,000 to the heirs in the order and shares set by statute (for example, a surviving spouse and children will split the net according to the relevant portions in Title 53).

Helpful hints

• Contact the local probate court early. The probate clerk can explain how to open an estate and whether simplified collection rules apply.
• Gather documents: death certificate, bank and brokerage statements, titles for vehicles and real property, and creditor statements.
• Keep estate funds separate. Do not distribute sale proceeds until debts, taxes, and the court’s directions are resolved.
• Get claims and notices in writing. Advertise for creditors if the court requires publication to protect the administrator from later claims.
• If the estate seems complicated (real estate, multiple jurisdictions, large debts), consider consulting a probate attorney. Although this article explains basics, personalized legal advice can prevent costly mistakes.
• Remember Georgia does not currently have a state estate tax, but federal estate tax rules may apply to very large estates.
• If you are a financial institution holding sale proceeds, ask for the probate court order or an administrator’s letters before releasing funds.