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Detailed Answer

When someone dies in New Jersey, their money and property do not automatically belong to whoever uses them. The right to manage a deceased person’s assets generally belongs to the personal representative (executor or administrator) appointed by the probate court. If a sibling is moving money from a parent’s bank account to pay a mortgage before the court appoints that sibling as administrator, that use may be lawful in some narrow situations but can be improper or unlawful in many others. Below is an explanation of the common scenarios, the legal rules that apply in New Jersey, and practical steps you can take to challenge or stop the withdrawals.

Who has the legal right to the account after death?

• Account titled to the deceased alone: If the bank account was solely in the parent’s name (no joint owner and no payable-on-death (POD) designation), the funds become part of the parent’s estate. Only a court-appointed personal representative has authority to use estate funds to pay debts like a mortgage. If no administrator has been appointed yet, no private person (including a child) normally has the authority to withdraw and spend those funds on behalf of the estate.
• Joint account with survivorship: If the sibling’s name is on the account as a joint owner with right of survivorship, the bank account typically passes automatically to the surviving joint owner at death. In that case the sibling may have a legal right to continue using the funds.
• Payable-on-death (POD) or transfer-on-death (TOD): If the account names a POD beneficiary, the designated beneficiary receives the funds directly at the owner’s death. That transfer bypasses probate.
• Tenancy by the entirety or other special titling: Certain ownership forms (less common for bank accounts) can affect who controls funds after death.

What if my sibling is withdrawing funds but was not a joint owner or POD beneficiary?

If the sibling is not an owner or beneficiary, withdrawals may be unauthorized. Possible legal bases to challenge the withdrawals include:

• Demanding the bank to freeze the account or provide account records.
• Filing for appointment as administrator (or asking the court to appoint someone) so the estate is formally represented.
• Asking the probate court for emergency or provisional relief (for example, an order preventing further dissipation of estate assets pending appointment of an administrator).
• Bringing a civil claim against the sibling for conversion (wrongful taking) and seeking repayment plus interest and possible court costs.
• Requesting an accounting and filing objections once an administrator or executor is appointed if funds were used improperly.

New Jersey law and where to look

New Jersey’s probate and fiduciary laws govern who controls estate funds and how estate creditors (including mortgage lenders) are paid. For practical guidance about starting a probate case, forms, and procedures in New Jersey, consult the New Jersey Courts’ estate and probate pages: New Jersey Courts – Wills, Estates & Probate. For statutory law on estates and fiduciaries, review New Jersey’s statutes under Title 3B (Estates and Fiduciaries) on the New Jersey Legislature site: New Jersey Legislature.

Practical steps you can take now

1. Collect documentation: Obtain the death certificate, account statements, mortgage statements, and any documents showing account title (bank card, checks, POD beneficiary forms, etc.).
2. Contact the bank: Ask whether the account was titled jointly, had a POD beneficiary, or was otherwise flagged. Ask for a transaction history and whether the bank relied on any signature or authority when making withdrawals.
3. Ask for an immediate temporary freeze: Explain you are a potential heir or interested party and that you believe funds may be part of the decedent’s estate. Banks sometimes freeze accounts for a short time until they receive formal probate paperwork or legal direction.
4. File probate or a petition for appointment: If there is no administrator, you (or another interested person) can file a petition with the county surrogate’s office or the probate court to open probate and appoint an administrator. This creates the formal legal authority to manage estate assets and requires an inventory and accounting of estate property.
5. Seek emergency court relief: If funds are being dissipated, ask the court for a temporary restraining order or other provisional relief to preserve estate assets until appointment occurs.
6. Consider a civil claim: If the sibling has already taken money improperly, you may have a cause of action for conversion or unjust enrichment. A lawyer can advise on timing, likely recovery, and whether small claims court is appropriate depending on the amount.
7. Preserve records and communications: Save bank notices, emails, texts, and any communications about the withdrawals or mortgage payments.

Timing and likely outcomes

Probate appointment and court action take time. If the sibling is clearly a joint account owner or POD beneficiary, courts tend to respect the title and those funds may not be part of the estate. If the sibling had no title or legal authority, the court can require repayment to the estate and may order an accounting. Banks may also be liable if they released funds without proper authority under the circumstances.

When to get a lawyer

Talk with a New Jersey probate or estate attorney promptly if: large sums are being withdrawn; mortgage payments or other creditor claims are being handled in ways that could prejudice other heirs; or if you need emergency relief (freeze or injunction). An attorney can file petitions, seek emergency relief, and advise on whether a civil claim or criminal complaint is appropriate.

Resources

• New Jersey Courts — Wills, Estates & Probate: https://www.njcourts.gov/selfhelp/wills-estates-probate.html
• New Jersey Legislature (statutes and Title 3B): https://www.njleg.state.nj.us/

Helpful Hints

• Don’t assume control of funds yourself. Taking money to “protect” it can create legal problems for you later.
• Check the account title carefully: “joint with right of survivorship” and POD designations are decisive facts.
• Act quickly to preserve records and pursue emergency court orders if you suspect improper dissipation.
• If you are an heir, file to open probate if one has not been opened; that is how the court supervises estate administration.
• Ask the bank for a written explanation for any withdrawals made by your sibling. Banks sometimes keep records showing what authority they relied on.
• Keep all communication civil and documented; hostile communications can complicate family disputes and court proceedings.
• Even if you want the sibling to keep paying the mortgage, insist on a court-ordered accounting or a written agreement that the sibling will be repaid from the estate.

Disclaimer: This article explains general principles of New Jersey law and common options people use in disputes over a decedent’s bank account. It is not legal advice. For advice tailored to your situation, contact a licensed New Jersey attorney.