Detailed answer — How to get the court’s permission to release estate funds when beneficiaries dispute the split (Alabama)

Short answer: If beneficiaries disagree about how estate money should be split, the personal representative (executor or administrator) should ask the probate court for instructions or an order authorizing a limited or interim distribution. The court will review the estate’s status (assets, debts, claims, will terms), give notice to interested persons, and either approve a safe distribution (often with conditions such as an indemnity, bond, or escrow) or require the funds to remain in custodial estate accounts until the dispute is resolved.

Disclaimer: I am not a lawyer and this is not legal advice. This article explains general Alabama procedures and options to help you understand choices and prepare to speak with a qualified Alabama probate attorney or your local probate court.

Who controls the money right now?

The person appointed by the probate court as the personal representative (called an executor if named in the will, or an administrator if appointed when there’s no valid will) has legal authority and duties to collect assets, pay debts and taxes, and distribute what remains under the will or Alabama law. If the funds are still in the estate’s bank account, the representative must follow court law and the probate process before releasing principal to beneficiaries.

Common reasons disagreements block release

Conflicting readings of the will or whether a particular gift is valid.
Unpaid creditor claims or taxes that might take precedence.
A question whether an asset is probate property or passes outside probate (e.g., payable-on-death, joint tenancy).
Accusations that the personal representative is acting improperly.

Typical court actions to get funds released in Alabama

Below are the main legal steps that happen in Alabama probate practice. The personal representative or an interested person brings one of these motions to the probate judge.

Petition for instructions / directions to the personal representative.

The representative files a petition asking the court to instruct how to handle the disputed funds. The court can authorize a particular distribution, require conditions, or rule that the money must remain in estate custody. The court issues an order after notice and any hearing. This is a common, direct way to get authority to release funds safely.
Petition for interim or partial distribution.

If the estate has enough liquid assets and no unresolved creditor claims that would be hurt by a partial payout, the personal representative can ask for a partial (interim) distribution. The court may approve a limited payout to beneficiaries while reserving the remainder to pay claims.
Motion to escrow or interpleader.

If multiple people claim the same money, the holder (bank or representative) can ask the court to hold the funds in escrow or order an interpleader action so the court decides who receives the money. The court then disburses funds after determining entitlement.
Request for bond, indemnity, or stipulation.

The court often allows release if beneficiaries sign indemnities or the paying beneficiary posts a bond to protect the estate against later claims. This reduces risk to the estate when there is a plausible dispute.
Petition for declaratory judgment or accounting.

If the dispute involves legal interpretation (for example, meaning of will language), a beneficiary or the representative can ask the court to declare rights and responsibilities. An accounting petition forces a full disclosure of receipts, payments and proposed distributions so the court can rule on release.

How the process usually works (step-by-step)

Personal representative identifies the disputed funds and the reason for disagreement.
Representative consults with a probate attorney (recommended) and prepares a petition for instructions, interim distribution, interpleader, or accounting.
The petition is filed in the county probate court that is administering the estate. The court sets a schedule for notice and a hearing.
The representative serves notice to all interested parties (beneficiaries, creditors, heirs). Alabama law and local probate rules specify how notice must be given.
The court hears evidence and argument. The judge decides whether to authorize release and under what conditions (e.g., bond, escrow, indemnity, or denial of distribution).
The judge issues a written order. The representative follows the order — either releasing funds per the order or continuing to hold the funds in the estate account.

What the court considers when deciding whether to release funds

Whether unpaid creditors or taxes exist that distribution could impair.
The clarity of beneficiary rights under the will or Alabama intestacy rules.
Whether a beneficiary will give an indemnity or post a bond to protect the estate.
Whether a speedy partial distribution is needed for urgent expenses (funeral debts, mortgage, medical bills) and whether the estate has sufficient reserves.
Evidence of mismanagement, fraud, or conflict that would counsel against release.

Practical examples (hypothetical)

Example 1: Two siblings disagree over how to split a $50,000 cash legacy. The executor files a petition for instructions and proposes splitting the money 50/50 and placing a $10,000 holdback in the estate for potential creditor claims. The court approves a 50/50 interim distribution with a $10,000 reserve.

Example 2: A bank holding $30,000 receives conflicting claims. The bank files an interpleader motion asking the probate court to decide who gets the money. The court holds a short hearing and orders distribution to the rightful beneficiary after verifying documents.

Time frame and costs

Timing depends on the county caseload and the complexity of the dispute. Simple petitions for instructions or interim distributions can be resolved in a few weeks to a few months. Contested disputes (declaratory judgment, interpleader, claims litigation) can take many months and cost more in attorney fees and court costs. Expect filing fees, publication costs for notice (if required), and attorney charges unless parties agree on a lower-cost resolution like mediation.

Key Alabama law reference and official resources

Alabama’s probate and estate laws are found in Title 43 of the Alabama Code (Probate, Estates and Trusts). For official text and to search specific statutes, visit the Alabama Legislature or the Alabama judiciary pages:

Because probate practice is governed by a mix of statutes and local probate court procedures, consult your county probate court’s website or clerk for filing forms and local notice rules.

Helpful hints

Ask the personal representative for an accounting in writing. That often clarifies the issue or reveals missing information.
If you are a beneficiary and need funds for urgent expenses, explain the urgency to the representative and the court — courts sometimes authorize limited emergency distributions.
Consider mediation before court. A neutral mediator can resolve distribution disputes faster and cheaper than litigation.
If you worry the personal representative may act improperly, request a formal accounting and, if needed, seek the court’s removal of the representative.
Be prepared to post an indemnity or bond if you want an early distribution but the court fears later claims.
Keep careful records. Save statements, communications with the representative, receipts, and any written offers to settle.
Talk with an Alabama probate attorney before signing indemnities or accepting a partial distribution. Once you accept money without proper protection, you may lose rights to contest later.

When to consult an attorney

Talk to a probate attorney if the dispute involves large sums, contested wills, allegations of misconduct, or complex creditor issues. An attorney can file the correct petition, prepare notice, argue at hearing, and draft safe releases or indemnities that protect both the estate and the payee.

Final note: the probate judge has wide discretion to balance creditor protection, fairness to beneficiaries, and efficient estate administration. Asking the court for guidance early and using clear, written petitions often resolves disputes without prolonged litigation.