Detailed answer — how Idaho handles sale proceeds when someone dies intestate

If someone dies in Idaho without a will (intestate), money that belongs to that person becomes part of their probate estate unless it passed outside probate before death. That includes sale proceeds from property that the decedent owned at death or that the personal representative sells as part of administering the estate.

Key steps and rules that usually apply:

• Identify whether the proceeds are estate property or passed outside probate. Proceeds from property owned solely by the decedent at death typically belong to the estate. Proceeds from property that passed automatically at death (for example, joint tenancy with right of survivorship, transfer-on-death designation, or payable-on-death bank accounts) do not generally go through probate and instead pass to the named co-owner or beneficiary.
• A personal representative (administrator) must be appointed for intestate estates. Because there was no will naming an executor, the court will appoint an administrator to collect estate assets (including sale proceeds), pay creditors and expenses, and distribute what remains according to Idaho’s intestacy rules. See Idaho probate statutes on appointment and administration of estates: Idaho Code Title 15, Chapter 3: https://legislature.idaho.gov/statutesrules/idstat/title15/t15ch3/.
• Creditors and administrative costs come first. The administrator must pay valid funeral bills, taxes, creditor claims allowed by the court, and estate administration costs before distributing remaining funds to heirs. If the estate lacks enough funds, creditors are paid to the extent assets allow, subject to Idaho law on creditor priority.
• Remaining funds are distributed under Idaho’s intestacy rules. After paying debts and administration costs, any leftover proceeds are distributed to heirs according to Idaho’s intestate succession statutes (who inherits depends on survivors such as a spouse, children, parents, siblings, etc.). For the specific order and formulas, see Idaho Code Title 15, Chapter 2 (Intestate Succession): https://legislature.idaho.gov/statutesrules/idstat/title15/t15ch2/.
• Small estate procedures or summary administration may apply. Idaho provides simplified procedures in some low-value estates so heirs can collect certain assets without full formal administration. Whether a simplified process applies depends on the estate’s assets and the types of assets involved; check court rules or consult a probate clerk. General probate self-help resources are available from the Idaho courts: https://isc.idaho.gov/self-help/probate.
• Survivorship and nonprobate transfers avoid probate. If the sale proceeds are already in an account or instrument that names a beneficiary (POD/TOD), or the decedent owned the asset jointly with survivorship rights, those funds typically pass to the surviving co-owner or beneficiary outside of probate and do not become estate property.

Example scenarios (hypothetical):

• Decedent owned a rental home in their name only and the administrator sells it after death. The sale proceeds are estate assets. The administrator uses part of those proceeds to pay outstanding mortgage and creditor claims, pays administration costs, then distributes the remainder to heirs under Idaho intestacy law.
• Decedent and a sibling held a property as joint tenants with right of survivorship. The property is sold after the surviving joint tenant inherits the property outside probate. The sale proceeds generally belong to the surviving joint owner, not the decedent’s estate.
• Decedent sold a vehicle shortly before death and left the cash in a bank account titled solely in their name. If that bank account is not payable-on-death to a named beneficiary, the cash is estate property and will be handled in probate administration.

Practical implications:

• Do not distribute sale proceeds that clearly belong to the estate until an administrator is appointed or you have clear authority under Idaho law. Unauthorized distributions can create liability.
• If you are a buyer who paid for property before discovering the owner died intestate, keep careful records and contact the probate court or a lawyer; the administrator must account for sales and transfers made close to the time of death.

Useful Idaho statutes and resources — probate and intestacy rules: Idaho Code Title 15, Chapter 3 (Administration): https://legislature.idaho.gov/statutesrules/idstat/title15/t15ch3/; Idaho Code Title 15, Chapter 2 (Intestate Succession): https://legislature.idaho.gov/statutesrules/idstat/title15/t15ch2/; Idaho Courts probate self-help: https://isc.idaho.gov/self-help/probate.

Disclaimer: This article explains general principles of Idaho law and is not legal advice. For guidance about a particular estate or sale proceeds, contact a licensed Idaho attorney or the local probate court.

Helpful hints — what to do next

• Confirm whether the funds passed outside probate (joint ownership, POD/TOD). If in doubt, contact the financial institution to learn the account’s title and beneficiary information.
• If you’re an heir, check with the county probate court to see whether an administrator has been appointed and whether a case is open.
• If you hold funds that may belong to the estate, keep detailed records and avoid spending or distributing them until you have authority from the court or unanimous agreement of heirs with legal advice.
• Gather key documents: death certificate, account statements, deeds, sale contracts, loan statements, and any beneficiary designations.
• Ask the probate clerk about small-estate procedures that may allow you to collect certain assets without full administration.
• Talk to a probate attorney if: the estate has significant value, creditors claim the estate, heirs disagree, or ownership/title is unclear.
• Keep copies of all notices and communications with creditors, purchasers, and the court to protect yourself from future claims.