How the Probate Court Handles Disputes About Releasing Estate Funds in Arkansas

Disclaimer: This is educational information, not legal advice. For advice specific to your situation, consult a licensed Arkansas attorney.

Detailed answer — what the court will require and how to get funds released

When beneficiaries or heirs disagree about how estate money should be split, the personal representative (executor or administrator) cannot simply distribute contested funds. Arkansas probate courts supervise estate administration and have the authority to approve, deny, or direct distributions. The general law governing fiduciaries, estate administration, and distribution in Arkansas appears in Arkansas Code, Title 28 (Trusts, Trustees, and Fiduciaries) and related probate provisions. For background see Arkansas Code, Title 28: https://www.arkleg.state.ar.us/ArkansasCode/Title28.

If a dispute arises, the usual court-supervised paths to get funds released are:

File a petition for instructions, interim distribution, or accounting.

The personal representative files a petition in probate court asking the court to approve a proposed distribution, to decide who is entitled to which funds, or to approve an interim distribution of undisputed portions of the estate. The petition should outline the dispute, identify all interested parties, and request specific relief (for example, an order authorizing payment of certain funds to named beneficiaries).
Request the court to deposit contested funds into the court registry or approve an interpleader.

If the representative fears personal liability for distributing funds while a dispute is unresolved, the representative can ask the court to order the disputed cash moved into the court’s registry or to allow an interpleader action. Depositing funds with the court protects the representative from claims and lets the court decide rightful ownership.
Provide notice and an accounting to interested parties.

Arkansas probate procedure requires that all interested persons be notified of pleadings and hearings. The court will expect the representative to file an accounting that shows receipts, disbursements, assets, and the basis for the proposed distribution. Beneficiaries get the chance to object or present competing evidence.
Attend a hearing and present evidence.

The court will schedule a hearing. Parties can present testimony, documents (wills, beneficiary designations, contracts), and legal arguments. The judge will interpret the will or apply intestacy rules and facts to decide distribution. If parties settle, the court may approve a settlement and issue an order for distribution.
Obtain the court’s distribution order and follow post-order steps.

After deciding, the court will sign an order directing how the funds are to be distributed. The representative follows that order. If funds were deposited into the court registry, the court will issue an order directing the clerk to disburse them per the ruling.

When a personal representative should use interpleader or deposit funds

If multiple parties claim the same funds or if distribution would expose the representative to conflicting claims, the safest route is interpleader or registry deposit. Interpleader asks the court to determine ownership so the representative can be discharged from further liability for those funds.

What the court typically looks for before approving distribution

Proper inventory and appraisal of estate assets.
Proof that bills and valid creditor claims have been paid or provided for.
Clear notice to all heirs, beneficiaries, and known creditors.
A complete accounting showing how the proposed split was calculated.
Evidence resolving any factual disputes about intent, beneficiary designations, or asset ownership.

Possible outcomes

The court may:

Approve the representative’s proposed distribution (in whole or in part).
Order contested funds held in the court registry until a final determination.
Order mediation or settlement conference.
Resolve title issues, reallocate shares, or order sale and division of assets.
Assess costs or attorney fees against a party who asserted frivolous claims.

Step-by-step checklist to ask the Arkansas probate court to release estate funds

Confirm who is the appointed personal representative. Only the court-appointed representative acts for the estate.
Collect documentation: the will, death certificate, account statements, bills, receipts, beneficiary forms, and any communications showing competing claims.
Prepare and file a petition with the probate court. Request instructions, interim distribution, or order to deposit funds into the registry. Attach a proposed order and a clear accounting.
Serve all interested persons with the petition and hearing date per court rules. Provide proof of service to the court.
Attend the hearing. Bring originals and witnesses to support your position.
Obtain the signed court order and comply with distribution instructions or registry procedures.

Key documents to include with your petition

Letters testamentary or letters of administration (showing authority).
Inventory and appraisement of estate assets.
Accountings of all transactions to date.
Copies of the will and any beneficiary designation forms.
Proposed distribution order for the judge to sign.
Proof of notice to heirs/creditors.

Timing and likely timeline

Simple interim distribution requests and uncontested petitions can be handled in a few weeks to a few months depending on court scheduling. Contested hearings, interpleader actions, or cases requiring factual resolution can take several months to a year or longer. Avoid premature distributions — doing so can expose the representative to personal liability if the court later orders a different allocation.

When to consult an Arkansas attorney

Hire a probate attorney if:

Multiple parties assert contradictory claims to the same funds.
There are questions about the validity of a will or beneficiary designation.
Creditors’ claims are complex or substantial in relation to estate assets.
The representative fears personal liability for distributing contested funds.
Parties want to mediate or negotiate a settlement that the court must approve.

Where to learn more — Arkansas resources and statutes

General statute collection on fiduciaries and probate: Arkansas Code, Title 28 — Trusts, Trustees, and Fiduciaries: https://www.arkleg.state.ar.us/ArkansasCode/Title28

Arkansas courts information (probate and court rules): https://www.arcourts.gov/

Helpful hints

Document every step. Create a clear paper trail of notices, receipts, and communications.
Do not distribute money that is actively disputed unless the court orders it or all parties sign a written release.
Use the court registry if you want to avoid personal exposure while the dispute is resolved.
Consider mediation before a hearing — courts often encourage settlement and it can save time and cost.
Be precise in your petition: list names, amounts, legal basis for each claim, and the exact relief you want.
Allow time for service and objections — interested parties must get notice and a fair chance to respond.

If you want help locating local probate forms or finding an Arkansas probate attorney, an attorney-referral service or the Arkansas Bar Association can provide referrals. For official statutory text and updates, use the Arkansas Legislature website linked above.