What happens to money left over after a parent’s home is sold in Idaho?
Short answer: It depends on how the house is titled. If the house is a probate asset owned by your dad (sole ownership or tenant in common), the sale proceeds become part of your dad’s estate and — after valid debts and administration costs are paid — any leftover funds are distributed under the will. If the house passed automatically to someone else (for example, joint tenancy with right of survivorship, a beneficiary deed or an inter vivos trust), the sale proceeds may pass outside probate and not be distributed under the will.
Detailed Answer — how Idaho law treats sale proceeds
This section explains the common scenarios and the general order of priority under Idaho probate practice.
1. Is the house a probate asset?
Key question: who owned the property and how was it titled when your dad died? Common possibilities:
- Sole ownership (only your dad’s name on the deed): The home is a probate asset. If an executor or personal representative sells the home during administration, the sale proceeds are estate assets and are used to pay debts and administration expenses. Any remaining balance is distributed according to the will.
- Joint tenancy with right of survivorship (JTWROS) or tenancy by the entirety: The surviving joint owner typically becomes sole owner automatically. The property (or its proceeds if sold by the surviving owner) generally passes outside probate and is not distributed under the decedent’s will.
- Beneficiary (transfer-on-death) deed or similar beneficiary designation: A properly executed transfer-on-death deed typically moves title outside probate to the named beneficiary.
- Trust ownership: If the house is titled in a revocable living trust, it passes under the trust terms and normally avoids probate.
- Community property issues: Idaho recognizes community property between spouses. If the property was community property, a surviving spouse may have rights to half or to a community-property survivorship interest depending on how title was held.
For more on Idaho statutes related to estates and probate, see Idaho Code Title 15 (Estates, Trusts and Protective Proceedings): https://legislature.idaho.gov/statutesrules/idstat/title15/.
2. If the sale proceeds are part of the estate, what is the order of distribution?
When sale proceeds are estate property, Idaho probate practice follows a standard order to pay obligations before distributing any remainder to beneficiaries under the will:
- Administrative costs and fees (personal representative compensation, attorney fees, probate court costs).
- Funeral expenses and estate administration expenses.
- Secured debts (mortgage or lien against the property) — these are usually paid from the sale proceeds.
- Priority claims and taxes (estate taxes, if any; federal and state taxes).
- Unsecured creditors with allowed claims.
- Finally, any remaining balance is distributed according to the will’s terms.
The personal representative has a duty to notify creditors and to pay only valid, timely claims before distributing funds. If an estate does not have enough money to pay all creditors, state law and probate procedures determine which claims get paid and in what order.
3. Special protections and allowances
Idaho law may give a surviving spouse or minor children certain allowances (for example, a family or homestead allowance) that reduce the amount available for distribution under the will. These allowances and exemptions can affect how much money remains after debts and expenses are paid. See Idaho Code Title 15 for rules about probate allowances and exemptions: https://legislature.idaho.gov/statutesrules/idstat/title15/.
4. Example scenarios (hypotheticals)
Hypothetical A — Solely owned house: Your dad owned the house alone. The executor sells the house for $300,000, pays off a $150,000 mortgage and $30,000 in administration and creditor claims. The remaining $120,000 becomes part of the estate and is distributed according to the will.
Hypothetical B — Joint tenancy with adult child: The house was owned jointly with your mom or an adult child with right of survivorship. The surviving joint owner becomes the owner on death. If they sell the house and pay debts, the leftover funds belong to the surviving owner, not to the estate under your dad’s will.
5. What if someone sold the house without probate authority?
If the property was a probate asset and someone sold it without authorization from the personal representative or court approval, the sale could be challenged. You may be able to file a petition in probate court for an accounting, to set aside the sale, or for other remedies. Consult a probate attorney if you suspect an improper sale.
6. Practical next steps
To determine whether sale proceeds should go to the estate under your dad’s will, you should:
- Obtain a copy of the deed to see how title was held.
- Check for a beneficiary deed, trust documents, or joint-account designations.
- Ask the personal representative or executor for an inventory and accounting.
- If needed, consult an Idaho probate attorney to review the facts and protect your rights.
Note: This article summarizes general Idaho probate principles. Specific outcomes depend on the deed, trust documents, statutory allowances, and the probate court’s rulings.
Helpful Hints
- Start by checking the county recorder’s office for the deed to confirm how the property was titled.
- Request a formal inventory and accounting from the personal representative; Idaho probate practice requires that executors provide this information.
- If you see a mortgage or lien listed on title, expect that those secured debts will be paid from sale proceeds before distribution.
- Look for a recorded beneficiary deed, trust paperwork, or joint ownership language that would move the property outside probate.
- If you can’t resolve questions with the executor, ask a probate attorney to explain your options — for example, petitioning the court for an accounting or to enforce the estate’s rights.
- Keep careful records of communications, copies of deeds, the will, and any probate filings or accountings.
- Remember that timelines and claims deadlines apply in probate. Acting sooner preserves rights to challenge sales or claims.