Quick Summary

Here’s a summary of a recent Michigan court decision about what happens when there is a dispute over money after someone dies.  The case is In re Estate of Chapman/In re Leonard and Frieda Chapman Trust Michigan Court of Appeals (February 12, 2026).

In some situations, a probate court can temporarily freeze money while a dispute is being sorted out. The court may do this by creating something called a constructive trust.

A constructive trust simply means the court holds money in place while it determines who the money truly belongs to.

The goal is not punishment.
The goal is protecting the money until the facts are clear.

Why This Matters

After a parent passes away, disagreements between family members sometimes arise about money or property.

In the situation addressed by the court, a mother had three sons.

One son had been acting under a power of attorney, which allowed him to help manage his mother’s finances as she aged.

Before her death, the beneficiary designations on several financial accounts were changed. The changes gave different percentages of the accounts to the three sons.

After the mother passed away, the accounts were paid out according to those designations.

But questions were later raised about what had happened before her death.

Concerns included:

• Whether money had been transferred from the mother’s accounts
• Whether some funds had been used for personal expenses
• Whether the beneficiary changes were appropriate

Because of these concerns, the probate court ordered two things.

First, the son who handled the finances had to provide a detailed accounting showing how the money had been handled.

Second, the court placed a constructive trust on the funds he received.

In simple terms, the money was temporarily frozen until the situation could be reviewed.

The son argued that the probate court had no authority to freeze the funds.

The Michigan Court of Appeals disagreed.

The court explained that probate courts have broad authority to:

• Review the actions of someone acting under a power of attorney
• Require an accounting of financial activity
• Protect estate assets while disputes are investigated

The court noted something important.

If the money were spent before the dispute was resolved, it might be impossible to recover it later.

Freezing the funds allowed the court to preserve the assets while the facts were determined.

Simple Lesson

When serious questions arise about money after someone dies, courts sometimes step in to protect the funds until the truth is clear.

Good planning — and careful record keeping — can prevent many of these disputes.

Action Step

Take time to review the people you have chosen to help manage finances if you ever become unable to do so yourself.

A well-designed estate plan and carefully selected financial decision-makers can prevent misunderstandings and protect families from conflict later.

If this topic raises questions for you or your family, feel free to call (517) 548-7400 or contact us online: https://www.michiganestateplans.com/contact-us