Tracking Sale Proceeds from a Deceased Parent’s House — Illinois Guide

This guide explains how to find out exactly where the net sale proceeds from your deceased father’s house will go under Illinois law. It assumes you start with no legal knowledge. It covers how ownership type, probate, liens, and closing documents control who receives money from a sale.

Step 1 — Identify how the house was owned

The first and often decisive question is how title to the house was held before your dad’s death. Common ownership forms and what they usually mean:

• Joint tenancy with right of survivorship: The surviving joint owner typically becomes the sole owner automatically and the house (and proceeds, if sold after death) does not pass through probate.
• Transfer-on-Death (TOD) deed or beneficiary designation: If a valid TOD deed named a beneficiary, that person takes ownership outside probate when the death is recorded. The deed or county recorder’s records show this.
• Revocable trust: If the house was owned by a trust, the trustee distributes proceeds according to the trust document without probate.
• Owned solely by the decedent (or jointly as tenants in common): The property typically becomes part of the decedent’s probate estate and proceeds are paid into the estate for distribution under a will or under Illinois intestacy rules if there is no valid will.

How to check ownership

1. Search the county Recorder of Deeds/Registrar of Titles online or in person for the deed. The deed will show whether title was held jointly, in trust, or individually.
2. Ask the title company that handled the sale or the closing attorney for a copy of the deed and the closing statement (also called a settlement statement or Closing Disclosure).

Step 2 — If the property went through probate

If the house is part of the probate estate, the proceeds are paid into the estate. Under the Illinois Probate Act, the personal representative (executor/administrator) has duties to collect assets, pay debts, pay taxes, and then distribute the remainder to the heirs or beneficiaries. See the Illinois Probate Act (755 ILCS 5/) for the governing framework: Illinois Probate Act (755 ILCS 5/).

Key items to locate if probate applies:

• Probate case number and court (county) where the estate was opened. You can find this by contacting the county probate clerk or searching online court records.
• Petition for appointment of personal representative, Letters of Office (appointment order), and any court order authorizing sale of real estate.
• Inventory and appraisement or a filed list of estate assets. Illinois law requires certain filings in probate so the court and heirs know what exists in the estate.
• Final accounting or distribution report filed with the court showing receipts, payments, and net distributions.

Step 3 — If the house was sold, get the closing statement

The clearest single document that shows exactly where sale proceeds went is the closing statement (settlement statement/Closing Disclosure/HUD-1). It lists:

• Gross sale price
• Payoffs (mortgage, home equity loans, tax liens)
• Real estate commissions and closing costs
• Attorney fees or probate sale costs (if applicable)
• Any holdbacks or funds paid to the estate or to beneficiaries

Who can request the closing statement:

• The personal representative or executor
• A named beneficiary or heir (often by requesting it from the personal representative)
• The closing agent or title company that handled the sale (they usually maintain a record)
• Your attorney can request a copy on your behalf

Step 4 — Understand priority of payments

In probate, distributions generally follow this order:

1. Costs of administering the estate (court costs, appraisals, publication fees).
2. Funeral and last illness expenses and claims (creditors may file claims against the estate).
3. Taxes owed by the decedent or estate and secured liens (mortgages, tax liens) shown by title search.
4. Payments required by the Probate Act (for example, allowances to a surviving spouse or minor children) and court-ordered payments.
5. Remaining balance distributed under the will or under Illinois intestacy rules.

Because Illinois law requires the personal representative to pay valid claims and expenses before distributing principal, the final distribution will often differ from the simple sale price minus commissions. For general rules in the Probate Act see: Illinois Probate Act (755 ILCS 5/).

Step 5 — Check for liens, mortgages, and taxes

Before distribution, secured claims (mortgages, tax liens, judgments recorded against the property) must be paid. You can:

• Order a title search through a title company to see recorded liens.
• Contact the county tax collector or treasurer to confirm unpaid property taxes and whether the sale satisfied those taxes.
• Request payoff statements from the mortgage servicer if a mortgage was present.

Step 6 — If the house passed outside probate (joint tenancy, TOD deed, trust)

If the house transferred by operation of law (survivorship, TOD deed, or trust), proceeds from a sale after the transfer belong to the new owner(s). In that case:

• Locate the recorded deed or trust instrument showing the transfer.
• Ask the closing agent for the closing statement showing disbursements to the new owner and payoffs of liens.
• Survivors or beneficiaries who believe the transfer was invalid may challenge it in court—but that is a separate legal action.

Step 7 — If you can’t get clear information, check these places

• County Recorder of Deeds / Registrar of Titles — for deed records and recorded liens.
• County Probate Clerk or Court Website — for probate case files, inventories, accountings, and orders.
• Title company or closing agent — for the closing statement and wiring/disbursement details.
• Personal representative or their attorney — for the estate accounting and proof of distributions.

What to expect on timing and transparency

Probate administration can take months to more than a year depending on estate complexity, creditor claims, and whether taxes are owed. Illinois probate procedures require certain notices and filings so heirs and creditors have opportunities to object and file claims. If you are an heir or beneficiary, you have the right to request an accounting from the personal representative and to review court-filed accountings once they are submitted.

When to consider legal help

If you cannot obtain the closing statement, if distributions look incorrect, or if there is a dispute about ownership or required payments, consult a licensed Illinois attorney who handles probate or real estate closings. An attorney can request court filings, demand an accounting, or advise about contesting a sale or transfer.

Useful Illinois statutory reference

Relevant statewide statutory framework is the Illinois Probate Act (755 ILCS 5/). You can read the act here: https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2104&ChapterID=60. For procedural or county-specific information, check the local circuit court or county clerk website where the estate was administered.

Helpful Hints

• Get the closing statement first—the Closing Disclosure or HUD-1 usually answers “where did the money go?”
• Search the county Recorder of Deeds for the deed, recorded mortgages, and any Transfer-on-Death deed.
• If there is a probate case, ask the probate clerk for the case number and request copies of the petition, Letters of Office, inventory, and accountings.
• Ask the personal representative (or their attorney) in writing for a copy of the final accounting and the settlement statement from the sale.
• Order a title search if you suspect hidden liens or judgments.
• Keep written records of all requests you make for documents and communications about distributions.
• If someone refuses to provide required documents in an open probate case, you can ask the probate court to compel production or seek an attorney’s help.
• Small estate procedures exist in Illinois for lower-value estates; the probate clerk can explain if the estate might qualify for a simplified process.