Detailed Answer

When an estate enters probate in Vermont, the probate court and the appointed personal representative (also called an executor or administrator) follow legal steps to collect assets, pay valid debts and expenses, and distribute the remainder to heirs and beneficiaries. If you discover unauthorized charges to your parent’s estate—charges that the estate did not lawfully owe or that were taken by someone without authority—the probate process includes specific tools you and the court can use to investigate, correct, and recover those funds.

How unauthorized charges are identified in probate

During probate the personal representative must gather assets and prepare an inventory and accounting for the court and beneficiaries. That accounting should list all receipts, disbursements, and claims paid. Unauthorized charges often appear in:

• Bank or credit-card statements showing withdrawals, transfers, or payments that were not estate obligations.
• Payments made by a guardian, conservator, attorney-in-fact, or agent under a power of attorney who exceeded their authority.
• Debtor claims filed against the estate that are forged, inflated, or otherwise invalid.

Under Vermont law, the probate statutes and rules (Title 14 of the Vermont Statutes) govern administration of estates and the duties of personal representatives. See Vermont probate statutes: Title 14 — Probate Procedure, and general information from the Vermont Judiciary Probate Division: Vermont Judiciary — Probate Division.

Key steps the probate court and interested persons use to address unauthorized charges

1. Request or review the estate accounting. Beneficiaries and interested persons may request a formal accounting. The accounting should identify every payment and explain why each payment was valid. If you see unexplained or suspicious payments, flag them immediately with the personal representative and the probate court.
2. Raise an objection in probate court. If a payment appears unauthorized, an interested party (usually a beneficiary or creditor) can file an objection or motion in the probate matter asking the court to review the transaction. The court can order a hearing, require additional documentation, or deny approval of the questioned disbursement.
3. Seek a surcharge or monetary recovery. Vermont probate courts have authority to hold a personal representative or other fiduciary accountable for losses to the estate caused by improper acts. The court can enter a surcharge order requiring repayment to the estate for unauthorized withdrawals or improper expenditures.
4. Move to remove or replace a fiduciary. If a fiduciary’s conduct suggests bad faith, incompetence, or a conflict of interest, the court can remove them and appoint a successor. Removal requests are filed in probate court and typically require evidence of misconduct or failure to perform duties.
5. Preserve evidence and freeze suspicious assets. Ask the court to freeze remaining estate assets, put holds on contested accounts, or require the fiduciary to post a bond while the court investigates. Quick action helps prevent further dissipation of estate assets.
6. Pursue civil claims outside probate where appropriate. Beneficiaries may bring a separate civil suit against a wrongdoer (for example, for conversion, breach of fiduciary duty, or fraud) to recover funds. The probate court’s accounting and orders are often used as evidence in such suits.
7. Report criminal conduct when warranted. If the unauthorized charges appear to be theft, fraud, or forgery, report the matter to local law enforcement or the State’s Attorney. Criminal charges can run alongside probate remedies.

Who can be held responsible?

Possible responsible parties include:

• The personal representative who paid or allowed unauthorized charges.
• A guardian, conservator, or agent under power of attorney who exceeded authority.
• Third parties who knowingly accepted improper payments from the estate.

The probate court can require responsible parties to return funds, pay interest, and reimburse the estate for attorney fees and costs tied to correcting the problem.

Timing and creditor claims

Probate law sets timelines for creditor notice and claims. Executors typically must publish or send notice to creditors and allow a statutory period for creditors to file claims. Unauthorized charges that are not legitimate creditor claims are treated differently: the estate (through the personal representative or beneficiaries) should object and seek recovery. Act quickly—waiting can make recovery harder and can limit legal remedies.

What you should do right away

• Ask the personal representative for a copy of the estate inventory, accountings, and bank statements.
• Keep and copy any documents that show the unauthorized charges (statements, canceled checks, emails, invoices).
• File a written objection with the probate court if you suspect unauthorized payments.
• Consider requesting a court-ordered accounting, freeze of assets, or temporary removal of the fiduciary if the situation is urgent.
• Consult a probate attorney experienced in fiduciary breach and estate litigation to assess remedies and next steps.

Practical outcomes you can expect

If the court finds charges were unauthorized, typical outcomes include:

• Repayment to the estate (a surcharge).
• Removal or replacement of the fiduciary.
• Payment of interest and litigation costs by the responsible party.
• Referral for criminal prosecution if theft or fraud is involved.

The court’s exact remedy depends on the facts, the size of the loss, and whether the fiduciary acted in good faith or bad faith.

Where to find Vermont probate rules and statutes

General probate law in Vermont is codified in Title 14 of the Vermont Statutes: https://legislature.vermont.gov/statutes/title/14. For procedural questions, forms, and local probate office contacts see the Vermont Judiciary Probate Division: https://www.vermontjudiciary.org/courts/probate.

Important note: probate processes vary by county and the specific docket. Time limits and required forms are enforced by the probate court, so prompt action matters.

Disclaimer

This article explains general information about Vermont probate processes and is not legal advice. It does not create an attorney-client relationship. For advice about a specific situation, consult a licensed Vermont probate attorney.

Helpful Hints

• Document everything. Save bank and credit-card records, invoices, and communications.
• Act quickly. Probate deadlines and the risk of dissipating assets make prompt steps important.
• Request formal accountings in writing so the court record reflects your concerns.
• Consider emergency court relief if assets are being removed or wasted.
• Get professional help: a probate attorney and, if needed, a forensic accountant or investigator.
• If you suspect criminal activity, notify law enforcement after speaking with counsel if possible.
• Keep beneficiaries informed. Coordinated action by multiple interested persons strengthens objections.