Will leftover money from a sold home be distributed under my dad’s will? (Illinois FAQ)

Short answer: Usually yes — after the home is sold, the sale proceeds become part of your father’s probate estate. The personal representative (sometimes called an executor) must use those proceeds to pay valid debts, funeral and administration expenses, taxes, and other required claims. Any money remaining after those obligations are paid (the “residue”) is distributed according to your father’s valid will. If there is no valid will, Illinois intestacy rules determine who gets what.

Detailed answer — how the process works under Illinois law

When someone dies owning a home, what happens next depends on several facts: whether the home is owned solely by the decedent, whether it was jointly owned (for example, joint tenancy with right of survivorship), whether there is a mortgage or other secured debt, and whether the estate goes through probate.

1. Sale proceeds become estate assets

If the house is sold during probate, the money from the sale becomes an asset of the decedent’s estate. The personal representative must include that money in the estate inventory and treat it like other estate funds.

2. Priority: pay debts and administration costs first

Under Illinois probate rules, the personal representative must pay the estate’s valid obligations before distributing anything to beneficiaries. Typical priorities include:

secured debts (such as a mortgage or home equity loan linked to the property),
administration expenses (court costs, attorney fees, appraiser fees),
funeral expenses, and
taxes owed by the decedent or estate and other allowed creditor claims.

If secured debts remain after a sale, the secured creditor has a right to payment from the sale proceeds up to the amount of the secured debt.

3. The “residue” goes to whoever the will names (or by intestacy)

After paying all allowed claims and costs, the remaining money — the residue of the estate — is distributed according to the decedent’s will. If the will contains a residuary clause, that clause usually governs who receives leftover funds. If the will does not dispose of the residue or if there is no valid will, Illinois’s intestacy rules decide who inherits.

So, if your dad’s valid will leaves the residue to specific people, those people are generally entitled to the leftover money once debts and expenses are paid.

4. Special rules and exceptions to watch for

Joint ownership: If the house was owned jointly with right of survivorship, the property may pass automatically to the surviving joint owner and never enter probate. In that case, there would be no sale proceeds in the probate estate to distribute under the will.
Beneficiary designations and non-probate transfers: Assets that pass by beneficiary designation (life insurance, retirement accounts) or by trust typically bypass probate and go directly to the named beneficiary.
Spouse protections and allowances: Illinois law provides certain protections for surviving spouses (for example, allowances or an elective share). Those rights can affect how much the estate can distribute under the will. For more on Illinois probate law, see the Illinois Probate Act: https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2106&ChapterID=60
Insufficient assets: If the estate’s debts and required expenses exceed its assets (including sale proceeds), there may be nothing left for the will beneficiaries.

5. What the personal representative must do

The personal representative has a fiduciary duty to the estate and beneficiaries. Typical duties include locating assets, inventorying the estate, giving notice to creditors, paying valid claims, filing tax returns, and distributing the residue as the will directs or as law requires. Beneficiaries may request an accounting or petition the probate court if they suspect the personal representative is not following the law.

Hypothetical examples

Example 1 — clear residue to beneficiaries: Dad’s house sells for $200,000. Mortgage payoff and liens total $50,000. Administration costs, taxes, and funeral expenses total $30,000. After paying those charges, $120,000 remains. If Dad’s will leaves the residue to his children, those children split the $120,000 according to the will.

Example 2 — secured creditor consumes proceeds: House sells for $150,000 but a mortgage and home equity loan total $140,000, and administration costs are $20,000. The estate lacks sufficient funds to pay everything; creditors and costs get priority and beneficiaries receive nothing.

What you can do right now

Find and read the will. The will often tells you whether the house should be sold and who gets the residue.
Ask the personal representative for a copy of the inventory and an estate accounting.
Check whether the property passed outside probate (joint tenancy, trust, beneficiary designation). If so, the will won’t control that property.
If you believe the personal representative is not following the will or the law, consult a probate attorney or petition the probate court for relief.

Helpful hints

Gather basic documents: death certificate, will, deed, mortgage records, account statements, and any correspondence from the personal representative or probate court.
Ask for a written inventory and accounting. You have the right to see how estate funds are handled during probate.
Confirm how the property was titled. Joint tenancy or a living trust can remove the asset from probate entirely.
Remember priority: creditors and estate costs come first, then beneficiaries get what remains under the will.
If the surviving spouse or minor children may have legal allowances or claims, discuss those with an attorney — those rights can reduce what passes under a will.
Contact the probate court clerk where your parent lived to check whether an estate case is open and to obtain filed documents.

Where to learn more and find legal help

Read the Illinois Probate Act for the state’s probate rules: https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2106&ChapterID=60

If you have questions about how the will applies in your family’s situation or if you suspect problems with the administration of the estate, consult a probate attorney licensed in Illinois. A lawyer can review the will, the title to the house, the estate inventory, and advise you about next steps.

Disclaimer: This article is for general informational purposes only and is not legal advice. I am not a lawyer. For advice about a specific situation, consult a licensed Illinois attorney.