How unauthorized charges to a parent’s estate are handled during Tennessee probate

Disclaimer: This is educational information only and not legal advice. Laws change and every situation differs. Consult a Tennessee probate attorney for advice about a specific case.

Detailed answer — what typically happens and what you can do

When someone makes unauthorized charges that affect a decedent’s assets, Tennessee probate law gives the personal representative (executor or administrator) tools to identify, contest, and remedy improper charges before estate distributions. Below is an outline of the usual legal framework and practical steps under Tennessee law.

1. Who is in charge during probate?

After a person dies, a court appoints a personal representative to collect the decedent’s assets, pay valid debts and taxes, and distribute any remaining property to heirs or beneficiaries. The personal representative owes fiduciary duties to the estate and its beneficiaries and must act honestly and carefully.

2. Unauthorized charges are treated as claims or misappropriation

Charges made to the decedent’s credit card, bank account, or other assets without authorization generally are not valid debts of the estate. Instead they may be:

• Fraudulent or unauthorized charges by a third party (e.g., scam or identity theft);
• Misuse or conversion by a family member, caregiver, or even the former fiduciary; or
• Proper administrative expenses if the court authorized them for estate administration.

The personal representative’s job is to identify which charges are legitimate estate obligations and which are not. Unauthorized charges should be treated as claims against the person who made them (to be recovered) or disputed with the creditor (card issuer, merchant).

3. Immediate actions the personal representative (or family) should take

• Get the death certificate to financial institutions and close or freeze accounts to stop further charges.
• Notify credit card companies and banks in writing, request investigation of disputed charges, and provide a copy of the death certificate.
• Gather records: account statements, receipts, communications, and any powers of attorney or prior authorizations.
• File for formal appointment as personal representative if not already appointed; only an appointed representative can act for the estate in court and handle claims.

4. Creditor notice and timelines under Tennessee probate law

Tennessee probate statutes set out procedures for notifying creditors and for presenting claims against an estate. The personal representative typically publishes notice to unknown creditors and must give direct notice to known creditors. Creditors must timely present their claims to the personal representative or in the probate court following the statutory procedures. See Tennessee Code, Title 30 (Probate of Wills; Administration of Estates) for general rules: Tennessee Code – Title 30.

Because timelines and exact requirements matter (for example, whether a claim is barred by the statute of limitations or by the claims procedure), the personal representative should follow the notice and claims rules in Title 30 closely and consult counsel when in doubt.

5. How disputes over unauthorized charges are resolved

• Dispute with the creditor/merchant: The estate (through its personal representative) can dispute charges with the credit card company or bank. Financial institutions often reverse clear cases of fraud, especially if informed promptly and given a death certificate and supporting documentation.
• Claims process in probate: If a business or person asserts a charge is a valid debt, the creditor can present a claim in probate. The personal representative can accept, reject, or negotiate the claim, and the court can decide disputed claims.
• Civil action against the person who made unauthorized charges: If a family member or caregiver converted estate assets, the personal representative can sue that person for the value of the improper charges (surcharge the fiduciary, seek restitution, or recover via ordinary tort or conversion claims).
• Removal or surcharge of a fiduciary: If the personal representative misapplied estate funds, beneficiaries can petition the probate court to remove the fiduciary, require an accounting, and recover losses. Tennessee statutes and probate rules govern removal and surcharge remedies (see Title 30). Tenn. Code Ann., Title 30.
• Criminal reporting: Charges that look like theft or fraud can be reported to local law enforcement or the Tennessee Bureau of Investigation (Tennessee Bureau of Investigation). A criminal investigation is separate from the probate court’s civil remedies.

6. Practical considerations before distribution

The personal representative generally must resolve valid claims and reasonably suspected claims before distributing estate assets. That means unauthorized charges that are disputed or that require recovery efforts should be addressed (or reserved for) before beneficiaries receive property. If the estate is small or distribution occurs before claims resolve, the representative may retain sufficient reserves to protect the estate.

7. What beneficiaries or concerned family members can do

• Ask the personal representative for a copy of the estate inventory and accounting.
• If you suspect misuse, request the court to order an accounting or to freeze particular assets temporarily.
• Petition the court to remove a personal representative who is acting improperly or not protecting the estate.
• Keep detailed notes and gather evidence (statements, emails, receipts) showing the unauthorized activity.

8. When to get a Tennessee probate attorney

If there are significant unauthorized charges, a likely misuse by a fiduciary, contested creditor claims, or complex asset recovery issues, consult a Tennessee probate attorney promptly. An attorney can file the necessary petitions, negotiate with creditors, bring civil claims for conversion or breach of fiduciary duty, and coordinate with criminal authorities if appropriate.

Helpful Hints

• Act quickly: notify banks and card issuers, and get the death certificate to stop new charges.
• Secure original documents: wills, account statements, and proof of unauthorized transactions.
• Get formally appointed: only a court-appointed personal representative can bring or defend claims on behalf of the estate.
• Keep distributions on hold until known creditor issues and suspected fraud are resolved or appropriately reserved for.
• Document everything: dates, amounts, who made charges, communications with institutions—this helps in civil or criminal remedies.
• If a family member is responsible, consider both civil remedies (suit for conversion or surcharge) and criminal reporting where appropriate.
• Use the Tennessee Code (Title 30) for reference to probate procedures: Tenn. Code Ann., Title 30. For suspected criminal fraud contact the Tennessee Bureau of Investigation or local law enforcement.

Because estate administration and creditor claims involve strict procedures and deadlines under Tennessee law, consult a qualified Tennessee probate attorney to protect estate assets and to pursue recovery for unauthorized charges.