Detailed Answer
If the estate’s money is disputed and the personal representative (executor) cannot safely distribute funds, the Probate and Family Court in Massachusetts is the place to get official instructions and court approval. The court can authorize interim or final distributions, order funds deposited with the court’s registry, resolve disputes about who gets what, and approve settlements between competing claimants.
Key legal framework: Massachusetts probate matters are governed by the Massachusetts General Laws, Chapter 190B (the Probate Code), and by the Massachusetts Rules of Probate Procedure. See the Probate Code: M.G.L. c.190B, and the Probate & Family Court information and forms at the Commonwealth’s site: Massachusetts Probate & Family Court and Probate Court forms.
Here are the common steps to obtain court approval or to protect estate funds while a dispute is resolved:
- Pause distribution and preserve assets. The personal representative should not distribute contested funds until the dispute is resolved or the court directs otherwise. Preserve the estate’s assets—keep funds in an estate account or other secure place to avoid allegations of mismanagement.
- Provide notice to interested persons. Under the Probate Code, interested persons (heirs, beneficiaries, creditors, and parties with a legal interest) must receive notice of petitions and hearings. Proper notice lets the court enter orders that bind all interested parties. See M.G.L. c.190B for notice and interested-person rules: M.G.L. c.190B.
- File the appropriate petition with the Probate & Family Court. Typical petitions include petitions for instructions, petitions for interim or final distribution, petitions to allow payment for specific expenses (taxes, mortgage, funeral), petitions to deposit funds in the court registry, and petitions to approve a settlement or compromise of claims. Use the Probate Court forms and follow local court filing rules: Mass. Probate forms and the court’s procedural rules: Massachusetts Rules of Probate Procedure.
- Ask the court to deposit funds in the registry (if appropriate). If parties disagree on entitlement, the court can order that disputed cash be deposited in the court’s registry (sometimes called the registry of the court) until the dispute is resolved. Depositing funds protects the personal representative from liability for wrongful distribution and preserves the estate for the person ultimately determined to be entitled to the money.
- Request a hearing or mediation. After filing a petition, the court schedules a hearing. Often the court encourages or orders mediation to try to settle disputes before a contested hearing. If the parties agree, the court can approve a settlement and sign an order for distribution.
- Bring required documents to court. Be ready to submit the will (if any), the estate inventory, accountings, proof of notice to interested persons, creditor claim information, and any written settlement agreements or correspondence demonstrating attempts to resolve the dispute. The court relies on those documents in deciding whether to authorize a release of funds.
- Be prepared for an interim accounting or bond requirement. The court may require an interim accounting before approving distributions. If the personal representative did not have a bond, the court may require one to protect the estate before allowing distribution.
- Possible outcomes the court can order. The court can: (a) order partial (interim) distribution for uncontested shares or for necessary expenses; (b) approve payment of tax bills, mortgages, funeral expenses, and other administrative costs; (c) approve a settlement between contesting parties; (d) require funds be deposited into the court’s registry until the dispute is resolved; or (e) deny distribution until the dispute is decided by further proceedings.
Typical timeline: The timing depends on the complexity of the dispute and the court’s schedule. Simple petitions and uncontested interim payments can be resolved in weeks; contested claims or full accountings and hearings can take months or longer. If creditors have claims or there are questions about beneficiaries’ entitlements, expect longer proceedings.
When to get a lawyer: If the dispute is significant, if multiple parties contest distribution, if there are creditor claims or tax issues, or if the personal representative faces potential liability, get a Massachusetts probate attorney. A lawyer can prepare petitions and notices, represent you at hearings, negotiate settlements, and reduce the risk of future claims against the personal representative.
Practical example (hypothetical): An executor holds $100,000 cash. Two beneficiaries claim different shares. The executor files a petition for instructions and asks the court to order the $100,000 deposited into the court registry pending resolution; the executor also asks permission to pay the estate’s final income tax bill of $6,000. After notice and a short hearing, the court orders the $6,000 paid from the estate account and directs the remaining $94,000 deposited with the court registry until the competing claims are resolved by mediation or a further hearing. The executor follows the court order and avoids personal liability.
Resources: Probate & Family Court information and local rules: https://www.mass.gov/orgs/probate-and-family-court. Massachusetts Probate Code: https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleII/Chapter190B. Probate court forms: https://www.mass.gov/guides/probate-and-family-court-forms.
Important: This answer explains typical Massachusetts procedures and options, but specific steps may vary with the facts and the local court. The Probate and Family Court will apply M.G.L. c.190B and its rules to the precise facts you present.
Disclaimer: This is general information, not legal advice. For advice about a specific case, consult a licensed Massachusetts probate attorney.
Helpful Hints
- Keep accurate records: maintain an estate bank account, save receipts, and track every transaction.
- Give timely, written notice to all interested persons to avoid later challenges.
- If you are the personal representative and unsure what to pay, ask the court for instructions or to deposit funds with the court registry.
- Consider mediation early—courts often encourage settlement and it can save time and legal fees.
- Prepare an inventory and an interim accounting before filing a petition—courts expect clear documentation.
- Don’t mix estate funds with personal funds; that can create allegations of breach of fiduciary duty.
- Use the Probate Court’s website for local forms and filing instructions: Massachusetts Probate & Family Court.
- When in doubt, hire a probate attorney—costs for counsel can be justified by avoiding personal liability and expensive litigation.