Detailed Answer: Can the estate recover money withdrawn by an heir after a parent’s death?

Short answer: Yes—often. Whether the estate can recover money an heir withdrew after a parent died depends on what kind of account or charge it was, whether the heir had legal authority to act, and whether the money passed to that person by law or contract (for example, a payable‑on‑death designation or valid joint tenancy). If the withdrawal was wrongful, the personal representative (executor or administrator) can usually demand return, sue in probate court for turnover, and pursue civil claims such as conversion, unjust enrichment, or breach of fiduciary duty. Criminal charges (theft or embezzlement) are also possible in some cases.

How Michigan law treats different situations

1) Accounts or cards that belong to the estate (no survivorship or POD)

If the decedent held the account in their name alone and there was no payable‑on‑death (POD) or joint owner with survivorship rights, the funds belong to the decedent’s estate when the person dies. Michigan law entrusts collection and distribution of estate assets to the decedent’s personal representative under the Estates and Protected Individuals Code (EPIC). The personal representative has the right to demand and recover estate property and to bring lawsuits for conversion or unjust enrichment if someone improperly takes estate assets. For information about Michigan probate law, see the Michigan Legislature—Estates and Protected Individuals Code: https://www.legislature.mi.gov and search Chapter 700.

2) Joint accounts and payable‑on‑death (POD) designations

If an account is a true joint account with right of survivorship or the account has a valid POD/payable‑on‑death beneficiary, the funds generally transfer directly to the surviving co‑owner or named beneficiary and do not become part of the probate estate. In that case, an “after death” withdrawal by the surviving joint owner or POD beneficiary may be lawful. Banks may rely on their account agreements and state law when paying out on these designations. If the account’s title or beneficiary designation is ambiguous, the personal representative can contest ownership in probate court.

3) Withdrawals made by someone appointed as personal representative

If the heir who withdrew funds was or later becomes the personal representative, the representative must follow statutory duties: collect estate assets, pay allowed debts and taxes, and distribute remaining assets to heirs or beneficiaries. A personal representative who withdraws estate funds for personal use or fails to account for withdrawals can be sued in probate court, removed, and required to reimburse the estate (often called a surcharge). The personal representative’s duties and powers are outlined in the Michigan probate code (see Michigan statutes, Chapter 700 via https://www.legislature.mi.gov).

4) Credit‑card charges after death

Credit‑card obligations belong to the decedent. If someone used the decedent’s credit card after death and the cardholder’s account was not in that person’s name or not properly authorized to use it, the estate may have a claim for wrongful charges and can dispute the charges with the issuer and in probate court. Whether the estate must pay depends on whether the charges were authorized, whether the issuer can recover from the estate, and whether the charges were for estate administration. Many credit card companies will freeze accounts after notice of death and will accept claims through the personal representative.

Common legal claims the estate can bring

• Turnover/order to account in probate court: require person to return estate property.
• Conversion: recovery for wrongful deprivation of property.
• Unjust enrichment or constructive trust: to prevent retention of estate assets when it would be inequitable.
• Breach of fiduciary duty or removal of a personal representative who misused estate funds.
• Criminal referral: where the conduct may amount to theft, embezzlement, or fraud.

What to do right away if you suspect wrongful withdrawals

1. Get a death certificate and contact the decedent’s bank and card issuers. Ask the bank to freeze the account until the personal representative is appointed.
2. Preserve records. Save account statements, ATM receipts, emails, text messages, and any written authorizations.
3. If you are the nominated or likely personal representative, consider formally opening probate so the court can secure and administer assets.
4. Send a written demand for return of funds through counsel if appropriate. Document all communications.
5. Talk to a probate attorney quickly. Time limits can apply to civil claims and criminal reporting.

Possible defenses the withdrawing heir might raise

• They were a joint owner or named POD beneficiary.
• The decedent authorized the transfer or gave the withdrawer power of attorney (note: a power of attorney typically ends at death).
• The withdrawing heir paid estate debts or funeral expenses and claims reimbursement.
• The funds were a valid gift made before death.

Timing and practical considerations

Procedures and rights can vary with the amount involved. Often small estates are handled with streamlined probate procedures. For larger estates or contested matters, expect formal probate litigation. The bank’s policies matter: many banks freeze accounts when they learn of a death and require letters testamentary (proof of appointment of personal representative) before releasing funds. If the bank paid out to someone with a valid beneficiary designation or to a joint account holder, the bank may have limited liability for honoring that paperwork.

Statutes and rules to consult (Michigan)

Key Michigan authorities include the Estates and Protected Individuals Code (EPIC), Mich. Comp. Laws Chapter 700, which sets out personal representative duties, probate court procedures, and remedies for mishandling estate property. You can read the Michigan Compiled Laws and search Chapter 700 at the Michigan Legislature website: https://www.legislature.mi.gov

Helpful Hints

• Do not confront the person who withdrew funds without documentation or legal advice. Emotions run high; let a lawyer or the court handle recovery.
• Obtain and keep certified copies of the decedent’s death certificate; banks and courts will need them.
• If you believe an executor misused funds, ask the probate court to compel an accounting and consider removal on grounds of misconduct.
• Collect proof of account ownership: statements, account agreements, beneficiary forms, and any written account title that shows joint tenancy or POD beneficiaries.
• Act promptly. Civil claims and statutory deadlines can bar recovery if you wait too long.
• Consider mediation for family disputes—courts often encourage settlement to avoid high litigation costs.
• Criminal remedies are available but require cooperation with law enforcement and the prosecutor; a civil recovery can proceed separately.

Where to get help: Contact a Michigan probate attorney who handles estate administration and fiduciary disputes. If you cannot afford a lawyer, check local legal aid organizations or your county’s probate court self‑help resources.

Disclaimer: This article explains general Michigan law concepts and common procedures. It is for informational purposes only and does not constitute legal advice. Every case differs. Consult a licensed Michigan attorney to get advice about your specific situation.