How to get court approval to release estate funds when heirs disagree — Michigan

Quick answer: If heirs or other interested persons dispute how estate money should be split, the personal representative (executor/administrator) should not make a final distribution without a court order. In Michigan you can ask the probate court for instructions or for approval of a proposed partial or final distribution. The court can resolve ownership disputes, approve a supervised distribution, or order the funds held in escrow or deposited with the court while the dispute is resolved.

Detailed answer — step‑by‑step under Michigan law

This is a general overview of common steps and procedures used in Michigan probate courts. The Estates and Protected Individuals Code (EPIC), MCL 700.1101 et seq., gives the probate court broad authority to supervise estates and resolve disputes. See the EPIC chapter for the full text: MCL Chapter 700 (Estates and Protected Individuals Code).

1. Identify who controls the estate

The personal representative named in the will (or appointed by the court if there is no will) has the initial duty to collect assets, pay valid debts and expenses, and distribute the remaining estate. If there is an executor or court‑appointed administrator, they should follow the will and any prior court orders. If the representative is unsure because of a dispute, they should not distribute contested funds without court direction.

2. Preserve the disputed funds

Put disputed funds in a properly designated estate bank account. Do not pay or transfer disputed amounts to any beneficiary until the dispute is resolved. The probate court may also order the funds deposited into the court registry or into an escrow account if needed.

3. Attempt informal resolution first

Before filing a formal motion, consider mediation, settlement discussions, or a neutral evaluation. Courts often encourage settlement and may require or suggest mediation. A written settlement agreement signed by all interested persons avoids litigation and speeds distributions.

4. File a petition with the probate court if you cannot resolve the dispute

Common petitions/forms used in Michigan include:

• Petition for instructions from the court — asking the judge to tell the personal representative how to act when the estate faces conflicting claims.
• Petition for partial distribution or final settlement and distribution — asking the court to approve distribution of certain uncontested portions of the estate while the court retains jurisdiction over the disputed parts.
• Motion to deposit funds with the court registry or for an order to impound disputed money pending resolution.
• Account and request for allowance — a formal accounting of receipts and disbursements, accompanied by a request for approval of distributions.

The petition should state the facts, identify the interested persons (heirs, beneficiaries, creditors), list the disputed items/amounts, attach supporting documents (inventory, accountings, copies of the will), and request specific relief (instructions, distribution, stay, deposit into court registry, appointment of a special fiduciary, etc.).

5. Give notice and follow court rules

Michigan law requires notice to interested persons before a hearing on petitions that affect rights. The probate court will set hearing dates, and you must serve notice to beneficiaries, heirs, and known creditors. Follow local probate forms and Michigan court rules for probate practice. If proper notice is not given, the court may delay action.

6. The hearing and possible court orders

At the hearing, the judge can:

• Enter instructions to the personal representative directing how to distribute funds.
• Approve a proposed partial or final distribution.
• Order the disputed funds deposited with the court registry or into escrow until resolution.
• Require the personal representative to post a bond or provide indemnity before making distributions.
• Appoint a special administrator, guardian ad litem, or auditor/accountant to assist in resolving disputes.

7. Appeals and enforcement

If a party disagrees with the probate court’s order, they generally may appeal under Michigan appellate procedure. Meanwhile, the probate court’s order controls the disposition of estate assets and the personal representative should follow it to avoid personal liability.

What the personal representative should include in a petition for approval or instructions

• Clear statement of the disputed issues (who claims what and on what basis).
• Inventory of estate assets and current cash balance in the estate account.
• Accounting of payments made and proposed payments (taxes, funeral expenses, creditor claims).
• List of all interested persons and how they were notified.
• Proposed form of order for the judge to sign (e.g., partial distribution, deposit in court registry, or instructions).
• Request for attorney fees or costs to be paid from the estate, if applicable.

Practical outcomes the court may order

• Authorize distribution of undisputed portions and order contested portions held until litigation or settlement.
• Order funds deposited with the probate court registry (court-held funds) until the dispute is resolved.
• Require bond or indemnity from the personal representative to protect the estate if the representative distributes contested funds.
• Refer the matter to mediation, appoint a neutral evaluator, or send complex legal questions to the circuit court if needed.

How long it takes and expected costs

Timing varies by county and case complexity. Simple instruction petitions can be resolved in weeks to a few months. Multi-party disputes with litigation can take much longer and increase legal costs. Personal representatives who distribute contested funds without court approval risk personal liability and may be held accountable for any loss to the estate.

Key Michigan statutes and resources

The Michigan Estates and Protected Individuals Code (EPIC), MCL 700.1101 et seq., governs probate administration, duties of personal representatives, notice requirements, and court powers. See: MCL Chapter 700 (Estates and Protected Individuals Code).

For local forms and procedural requirements, check your county probate court’s website or the Michigan Courts site for probate rules and instructions. County probate clerks can tell you the forms and filing fees required for petitions seeking court instructions or distribution approval.

When to call an attorney

Consider getting a probate attorney when:

• Multiple parties make conflicting claims.
• The estate contains large or unusual assets.
• There are potential creditor claims, tax issues, or litigation risk.
• You are the personal representative and worry about personal liability if you act.

Helpful Hints

• Do not distribute contested funds until you have a court order or a written, signed settlement from all interested persons.
• Keep a separate estate bank account and detailed, dated records of all transactions and communications.
• Serve clear, written notice to all beneficiaries and heirs early—document how and when you gave notice.
• Consider mediation early — courts and parties often favor settlement to save time and costs.
• If you are the representative and must move money, ask the court for permission to make a partial distribution or to post a bond to protect the estate.
• Ask the probate clerk what local forms and filing fees apply before you file a petition. Small mistakes in forms or notices can delay relief.
• Get legal advice if distributions are large or there is disagreement about validity of the will, claims of undue influence, or competing beneficiary claims.

Disclaimer: This article explains general Michigan probate procedure and is for educational purposes only. This is not legal advice. Laws and procedures change. Consult a licensed Michigan probate attorney for advice about your specific situation.