Disclaimer: This article is for general information only and is not legal advice. Consult a New York attorney about your specific situation.

Detailed Answer

When someone dies, the ownership and control of the decedent’s bank accounts and responsibility for credit-card accounts depend on how those accounts were titled and on who used the funds. Under New York law, the estate generally owns money in an account that was solely in the decedent’s name at the time of death. Money that an heir withdraws without legal authority may be recoverable by the estate through civil or court proceedings. The exact path to recovery depends on the facts:

1) Bank accounts titled only in the decedent’s name

If the account was in the deceased parent’s individual name (not a joint account, not a POD beneficiary), the funds belong to the decedent’s estate at death. The executor or administrator (the personal representative) has the right to collect estate assets once appointed by the Surrogate’s Court. If an heir withdrew funds after the death without authorization, the estate can typically sue for return of the money under causes of action such as conversion or unjust enrichment and can ask the Surrogate’s Court to compel turnover.

See general estate-administration procedures under the Surrogate’s Court Procedure Act: N.Y. SCPA.

2) Joint accounts and survivorship

Funds in a true joint account with right of survivorship generally pass to the surviving joint owner immediately at death, and those funds are not part of the estate. That surviving owner may lawfully withdraw funds. However, not every joint account creates survivorship rights—some accounts are opened for the convenience of a caregiver and do not give the other person ownership on death. If an account’s nature is disputed, the estate may challenge the withdrawal and seek recovery.

3) Payable-on-Death (POD) or beneficiary designations

Accounts with valid POD or beneficiary designations pass to the named beneficiary and typically bypass the estate. The beneficiary, not the estate, is entitled to those funds.

4) Credit cards and post-death charges

Credit-card debt and charges work differently. The estate is normally responsible for bona fide charges made before the cardholder’s death. Charges made after notice of death are generally unauthorized. A person who used the card after the account holder died may face civil liability and possibly criminal charges for theft or credit-card fraud. The card issuer will follow its contract and may seek repayment from the estate for authorized charges; it may also pursue the person who used the card improperly.

5) Criminal vs. civil remedies

Unauthorized withdrawals can be a civil wrong (conversion, unjust enrichment) and may also be criminal (larceny, theft, or unlawful use of a credit card). The estate’s representative can pursue civil recovery and may also report the conduct to law enforcement. See New York Penal Law on larceny and related offenses: N.Y. Penal Law Art. 155 and forgery/credit-card offenses: N.Y. Penal Law Art. 165.

6) Time limits

Civil claims to recover wrongly taken property are subject to statutes of limitation. For example, conversion and many related torts commonly carry a three-year limitations period under New York law. Check the Civil Practice Law & Rules for specifics: CPLR §214. Don’t wait to act; delays can prevent recovery.

7) What the Surrogate’s Court can do

The Surrogate’s Court oversees estate administration in New York. The court can appoint a personal representative, order an accounting of assets, and require persons to turn over estate property. When disputes arise about removed funds, the personal representative can bring petitions in Surrogate’s Court to recover assets and seek appropriate relief. See the Surrogate’s Court Procedure Act for court powers and procedures: N.Y. SCPA.

Typical Steps to Try to Recover the Money

1. Preserve evidence: collect bank statements, account histories, and communications showing the date of death and withdrawals.
2. Secure the accounts: notify the bank of the death and request a temporary freeze until the personal representative is appointed.
3. Obtain letters testamentary or letters of administration from the Surrogate’s Court so the representative has authority to deal with banks and creditors.
4. Send a written demand to the person who withdrew the funds asking for return and documenting the authority and basis for the claim.
5. If the demand fails, the representative can file a civil action (conversion, unjust enrichment) or a petition in Surrogate’s Court seeking turnover and damages.
6. Consider reporting unlawful withdrawals or post-death credit-card use to law enforcement if theft or fraud appears to have occurred.

How much can the estate recover?

If successful, the estate can typically recover the withdrawn principal, interest or bank fees caused by the withdrawal, and possibly prejudgment interest and court costs. Punitive damages are unusual in ordinary conversion claims but may be available in cases of malice or egregious conduct in limited circumstances.

Helpful Hints

• Act quickly. Banks and credit-card companies move fast; statute-of-limitations issues can arise.
• Get official documents ready: death certificate, account statements, and proof of ownership or account titling.
• If you are the personal representative, obtain letters testamentary/administration immediately and present them to the bank.
• Ask the bank for a written explanation of why funds were released and copies of withdrawal records.
• Keep communication civil. A clear demand letter can sometimes resolve the matter without litigation.
• Weigh recovery amount vs. litigation costs. Small sums sometimes cost more to litigate than they are worth to recover.
• Consider mediation or settlement before filing suit; courts often favor negotiated resolutions in estate disputes.
• If criminal wrongdoing appears likely, preserve evidence and consult both an estate attorney and local authorities.

When to consult an attorney

Talk to a New York estate or probate attorney if withdrawals exceed small amounts, if the account title is disputed, if a joint account’s nature is unclear, or if someone used a credit card after the death. An attorney can guide the personal representative through Surrogate’s Court procedures, send demand letters, file civil suits for conversion or unjust enrichment, and advise about possible criminal referrals.