Detailed answer — What to expect and how to proceed under Tennessee law

When someone dies, the person named as executor (if there is a will) or the court-appointed administrator (if there is no will) controls estate funds and property as a fiduciary. If beneficiaries or heirs disagree about how to split estate money, the fiduciary cannot safely distribute funds until the disagreement is resolved or the court approves a release. Tennessee probate courts handle these disputes in several ways. This section explains typical steps, likely filings, and practical options for moving funds while disputes continue.

1. Confirm who has authority over estate funds

The executor or administrator (the fiduciary) holds legal authority to collect assets, pay valid debts and expenses, and distribute the balance according to the will or Tennessee law. If you are unsure who that person is, check the court’s probate file for letters testamentary or letters of administration filed in the county where the decedent’s estate is being probated.

2. Communication and voluntary interim solutions

Often disputes can be narrowed by asking the fiduciary for an interim accounting and by discussing a limited, agreed distribution. The fiduciary may ask beneficiaries to sign a written release or agreement allocating particular assets in exchange for earlier distributions. If everyone agrees, the fiduciary can ask the probate court to approve the settlement or distribution.

3. Petition the probate court for instructions, interim distribution, or approval to pay

If parties cannot agree, the fiduciary or a beneficiary can file a formal petition in the probate court. Common petitions include:

• Petition for instructions from the court about how to handle assets and distributions;
• Petition for approval of an interim distribution (payment of specific funds now) — often with conditions, releases, or offsets for disputed claims;
• Petition to approve a compromise or settlement between beneficiaries;
• Motion asking the court to order funds deposited into the court’s registry (or clerk’s office) while the dispute is resolved (sometimes called an interpleader or deposit into registry).

Filing such a petition asks the judge to decide either to release funds to a beneficiary, to authorize the fiduciary to pay certain sums despite the dispute, or to direct that funds be held by the court until the dispute resolves.

4. Court may order funds deposited into registry or appoint a special escrow

When the fiduciary fears liability from distributing contested funds, the judge can order the money delivered to the court’s registry (the clerk) or to an independent escrow. This protects the fiduciary from later claims and preserves the funds until the court finishes resolving the dispute. A court-ordered deposit is a common, neutral solution when claims conflict.

5. Accountings and proof the court will want

The court will expect a verified accounting that shows what estate funds remain, what has been paid to creditors, expenses of administration, and any proposed distributions. Expect to provide bank records, bills, receipts, inventory of assets, and written evidence of claims or agreements. Tennessee probate practice requires fiduciaries to file inventories and accounts so the court and beneficiaries can evaluate distributions.

6. Temporary relief and emergency needs

If a beneficiary needs immediate funds for essential expenses (medical care, funeral costs, mortgage), the court may grant a limited, expedited interim distribution. The petition should show why immediate payment is necessary and how much is essential. The court may condition relief on releases, bonds, or offsets against final distributions.

7. Settlement, mediation, and trial

Many disputes resolve by settlement or mediation. Probate courts often encourage mediation to avoid lengthy litigation. If mediation fails, the matter proceeds to a hearing where the judge will hear evidence and decide how to distribute funds. The judge enforces the will or statutory intestacy rules and resolves competing claims.

8. Costs, attorney fees, and bond

The losing party may be ordered to pay costs or attorney fees in some circumstances. The court also may require the fiduciary to post or increase a fiduciary bond to protect the estate while disputed distributions are pending.

9. Small estates and non-probate alternatives

Tennessee has procedures for small estates that can allow faster release of certain assets without formal administration when statutory conditions are met. These procedures can simplify release of funds for small-value accounts, but they are not available if there is a formal administration pending or if parties dispute the right to those funds.

Relevant Tennessee sources

• Title 30 of the Tennessee Code governs probate, estates, and fiduciaries; the state code is available at the Tennessee General Assembly website: https://www.capitol.tn.gov/.
• Tennessee court forms and general probate information are available from the Administrative Office of the Courts: https://www.tncourts.gov/. Your county probate clerk’s office posts local filing requirements and forms.

Bottom line: If there’s a dispute over splitting estate funds, start by asking for an interim accounting and try to agree on a limited distribution or settlement. If that fails, the fiduciary or any interested party can petition the probate court for instructions, for an interim distribution, or to deposit the funds with the court. The judge can order a deposit into the court registry, approve conditional releases, require bonds, or hold a hearing to decide the dispute. Because each case has unique facts and procedures vary by county, consult a Tennessee probate attorney for guidance and to prepare the necessary filings.

Not legal advice: This article explains general Tennessee probate procedures. It does not substitute for personalized legal advice. Contact a licensed Tennessee attorney to discuss your situation.

Helpful hints — Practical checklist when funds are tied up by a dispute

• Obtain the court file: get letters testamentary/administration and any orders in the probate case.
• Request a written accounting from the fiduciary and copies of bank statements, bills, receipts, and the estate inventory.
• Ask whether the fiduciary will agree to an interim distribution conditioned on a written release.
• If you need money immediately, file a short, focused petition for expedited interim distribution describing the emergency and the exact amount needed.
• Consider mediation before a hearing — many probate judges require or favor mediated solutions.
• If the fiduciary fears liability, ask the court to accept deposit into the court registry so funds are safe while the dispute resolves.
• Check whether a small-estate affidavit or other simplified procedure applies to the asset(s) in question.
• Gather evidence: will, beneficiary designations, communications, receipts, and any written agreements.
• Know deadlines: creditors and certain claims have statutory time limits. Contact the probate clerk or an attorney to confirm any deadlines that affect distribution.
• When in doubt, hire a probate attorney early. An attorney can prepare petitions, manage notices to interested parties, and represent you at hearings.