What to do with house sale proceeds?

Well, it'll be a faff - but it shouldn't cost you any money to do that, should it?

Or... you couldn't endorse the check, could you? Might be worth asking, though it's possible that modern young bank tellers won't have the faintest idea what you're talking about.

Thanks for all of the replies and great information - and to Countrymouse for giving me the benefit of the doubt. I should have been more precise with my question. I long ago accepted that the house sale proceeds would go to state to cover their expenses. So when I say 'disburse funds' I don't mean to myself, I mean to the state. I have setup an estate account where I will deposit the check and will then write a check to the state. And yes, I do now have correspondence from the state with their claim and request for payment. What I was really trying to avoid was opening a bank account for the sole purpose of writing one check and closing the account. But seems that is necessary since the proceeds from the home should not be deposited into my personal account.

Is it possible that the $90K was the balance after Medicaid recovery? (might have been a very nice house!)

State of GA has an outside contractor - HMS - for MERP Medicaid’s Estate recovery program. They are a top notch company and do Recovery for about 1/3 of the states. Info on State Medicaid MERP website regarding the process. 

The usual system - based on posts on this site -for HMS seems to be that as the states Medicaid contactor HMS is sent by the state the recently deceased Medicaid file, so within it is details on the deceased assets such as a home and status on life insurance policy. Then HMS sends out a NOI (notice of intent) to get information from surviving spouse &/or heirs to determine if a claim or lien was to be done OR it could be that since there was a surviving spouse known by Medicaid that recovery was suspended till surviving spouse died (I’m guessing it has been done this way). Then after that 2nd death a NOI should have gone out by the outside contractor for MERP- HMS- again to determine if a claim or a lien action was to happen & was to be placed.  Any idea if this happened? If death #2 was recent, the NOI could be on its way. Based on others posts, it could take 3 mos to a year to get NOI. 

They died with assets (house) & debts (Medicaid tally,funeral & court costs, etc). They actually did have debts. Whomever did medicaid applications or renewals should have been aware of MERP as the recoup requirement is within these. Medicaid is required to attempt to file a lien or claim for recovery of monies spent by the state for any Medicaid applications filed after GA sign off on 2005 federal DRA. And NOI is needed to responded to by whomever was contact person on file for them for Medicaid or whomever to be executor of estate, so that determination can be done as to Recovery status. There are exemptions & exclusions to MERP as well as state laws that factor into if a Recovery done. NOI is kinda the first step in all this. Was NOI received & responded to?

For dealing with the estate, did you get a probate atty to open probate and do a Notice to Creditors so assets / debts dealt with via traditional probate process so there’s judges orders / sign off on the sale of the asset; OR did you on your own do some type of affidavit, or muniment of title? 

How was the sale of the house done? 
Like MLS type of Realtor listing sold with a Warranty Deed? 
Or FSBO or some type other private sale, with a Quit Claim Deed? 
Did buyer get title insurance? 
The check is it written out to the estate?

Typically, an account for the estate is established and all bills of the estate are paid from this account. Likewise, all assets/proceeds of the estate are deposited into the same account. Once all liabilities are settled AND the surrogate's court agrees, the remaining balance can be paid to the heirs of the estate.
I have zero personal experience with Medicaid, but from reading entries on this site, it seems there may be a possibility that the state medicaid system may seek restitution from the sale of the house.
From what you describe, there would be no federal taxes on this sum. If your folks lived in Georgia too, there is no inheritance tax for Georgia. Typically, the employees in the surrogate's court are quite helpful. You might check with them.