How Are Estate Sale Proceeds Distributed If Debts Exceed Assets? | NC

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Q: How are proceeds from the sale of estate property distributed when the estate has multiple creditor claims and may be insolvent? A: The short answer is that the money does not go straight to heirs. First, the sale proceeds usually pay the lien on the property, the costs of the sale, property taxes, and approved expenses tied to preserving or selling that property. Only the net amount left…