How an estate can respond when an heir withdraws money from a deceased parent’s accounts — Minnesota

Short answer: If someone withdraws money from a decedent’s bank account or charges a decedent’s credit card after the decedent dies and they had no legal authority to do so, the estate (through the personal representative) can usually try to recover those funds through civil actions in probate court and, in some cases, by asking law enforcement to investigate criminal theft. The outcome depends on how the accounts were titled, whether a beneficiary or joint owner exists, what documentation the bank relied on, and whether the person had legal authority such as being a duly appointed personal representative. This article explains the common scenarios, the legal theories an estate may use to get money back under Minnesota law, and practical next steps.

How account type affects who owns the money

Different account setups change who legally owns the funds after death:

• Sole accounts in the deceased’s name: Funds typically become part of the decedent’s probate estate. Only the personal representative (executor/administrator) has authority to collect and distribute them under Minnesota probate law. See Minnesota probate statutes: Minn. Stat. ch. 524 (Probate Code).
• Payable-on-death (POD) or beneficiary-designated accounts: Money generally goes directly to the named beneficiary and bypasses probate. If a third party took money after death and the beneficiary was bypassed, the estate or beneficiary may have claims depending on the bank’s records.
• Joint accounts: If the decedent held the account jointly with right of survivorship, the surviving joint owner usually owns the funds outright. If the account was joint for convenience only (or if a dispute exists over whether a gift occurred), the estate may challenge the transfer and ask the court to impose a constructive trust. Bank records and account agreements matter.
• Credit cards: Credit card accounts typically belong to the cardholder. After death, the estate is responsible for legitimate charges made before death. Unauthorized charges made after death by someone other than an authorized cardholder or authorized card user can be disputed and pursued as wrongful taking.

Why taking money after death can be illegal or actionable

If an heir withdraws funds after the decedent’s death without legal authority, possible grounds for recovery include:

• Conversion: Wrongful exercise of control over estate property.
• Unjust enrichment / restitution: Recovering benefits improperly retained.
• Turnover or surcharge: Probate court can order the person to return funds and may surcharge a fiduciary for losses caused by improper conduct.
• Constructive trust: Court can declare the wrongdoer to hold taken funds in trust for the estate or rightful beneficiaries.
• Criminal liability: In some cases, the conduct could meet the elements of theft or other offenses under Minnesota criminal statutes; law enforcement and prosecutors handle criminal charges. See Minnesota criminal statutes: Minn. Stat. ch. 609 (Crimes).

Who can start recovery steps

Only the decedent’s legally appointed personal representative (PR) can collect estate assets, pay valid debts, and distribute property under Minnesota probate law. If no PR has been appointed yet, an interested person (heir, creditor, or beneficiary) may petition the probate court to open an estate and appoint a PR. Once appointed, the PR can demand return of wrongfully taken funds and file actions in probate court. See general probate procedures: Minn. Stat. ch. 524.

Typical process the estate will follow to recover withdrawn money

1. Document the conduct: Collect bank and credit card statements, account forms, transaction receipts, communications, and death certificate.
2. Contact the bank or card issuer: Ask the institution to freeze remaining funds and provide records. Banks sometimes reverse improper disbursements when notified quickly.
3. Open probate if needed: If no personal representative exists, open probate so a PR can act formally.
4. Send a demand letter: The PR or attorney typically sends a written demand for return of funds.
5. File a probate petition or civil claim: If the person refuses, the PR may file a petition in probate court seeking turnover, surcharge, accounting, or other relief. The PR may also bring conversion or unjust enrichment claims in civil court as appropriate.
6. Consider criminal referral: For serious or large misappropriations, refer the matter to law enforcement. Criminal prosecution is separate from civil recovery.

Timing and statute of limitations

Time matters. Minnesota has statutory time limits for civil claims (statutes of limitations) and for bringing or reopening probate matters. The applicable deadlines depend on the claim (conversion, unjust enrichment, breach of fiduciary duty, etc.) and facts. For an efficient recovery, act promptly. For general information on limitation periods, see Minnesota statutes on civil limitations: Minn. Stat. ch. 541.

Practical examples (hypothetical)

Example 1 — sole account: A decedent had a bank account in their name only. After death, a child withdraws $10,000 without authorization. Because the account was part of the probate estate, the personal representative can demand return and, if needed, ask the probate court to order repayment and award interest.

Example 2 — joint account: A decedent named a child as joint owner. The child withdraws all funds after death. If the account was properly set up with right of survivorship, the child may lawfully own the funds. If the estate alleges the account was intended only for convenience or that the decedent’s signature was forged, the estate may challenge the transfer in court.

Example 3 — credit card: A credit card was in the decedent’s name. Someone used the card after death to make charges. The estate can dispute the post-death charges with the issuer and the personal representative may pursue civil remedies against the user.

Steps you can take right now

• Obtain the death certificate and account statements showing the disputed withdrawals.
• Talk to the bank or credit card company and ask for transaction documentation and whether they will reverse any disbursements made after the date of death.
• If no PR exists, consider filing for probate so an official representative can act. Minnesota court resources on probate: Minnesota Judicial Branch — Probate.
• Prepare a written demand for repayment and keep copies of all communications.
• Consult a Minnesota probate attorney if the amount is significant, if the bank refuses to cooperate, or if an estate contest seems likely.

When recovery may be difficult

Recovery becomes harder when:

• The alleged taker acted in good faith and believed they had a right to the funds (but good faith is not always a complete defense).
• Funds passed to a bona fide purchaser for value or were withdrawn long ago and spent/transferred to third parties.
• The account was legally joint or had a properly named beneficiary.
• Statutes of limitations have expired.

Helpful hints

• Act quickly. Early notice to the bank and prompt probate filings improve recovery chances.
• Power of attorney ends at death. Any withdrawals made after death using a POA are generally invalid.
• Keep records of all communications with banks, heirs, and potential witnesses.
• Ask the bank for a complete account history and for copies of account agreements and signature cards.
• If you are a potential personal representative, learn your duties and consider bonding/insurance if required by the court.
• Small-dollar disputes may be resolved by demand letters or mediation; large or disputed matters often require a probate petition and attorney involvement.
• Criminal prosecution is possible but separate. A civil claim does not require criminal charges to recover assets.

Disclaimer: This information is for general educational purposes only and is not legal advice. Laws change and outcomes depend on the facts. Consult a licensed Minnesota attorney to get advice tailored to the specific situation.