What if an heir withdraws money from a deceased parent’s bank account or credit cards? (South Carolina)

Short answer: Money or charges made after a person dies generally belong to the deceased person’s estate, not to an individual heir. In South Carolina the personal representative (executor/administrator) can demand the funds back, bring a civil claim (for conversion, account turnover, or breach of fiduciary duty), and in some cases law enforcement can pursue criminal charges. Banks and card companies also have duties once they learn of a death. Act quickly: preserving records and starting probate are key to recovery.

Detailed answer — how this works under South Carolina law

1. Whose money is it after death?

When a person dies, the person’s assets (cash in bank accounts, unpaid cards, etc.) generally become estate property to be administered under probate. An heir does not automatically own or control the deceased person’s accounts just because they are a child, relative, or a named beneficiary on a joint account. The correct legal owner depends on how the account was titled before death:

• Account titled solely in the deceased person’s name usually becomes estate property and must be handled through probate.
• Joint-account with right of survivorship (or accounts titled to multiple owners with survivorship language) often passes automatically to the surviving joint owner.
• Payable-on-death (POD) or beneficiary designations typically bypass probate and go to the named beneficiary.

2. Withdrawals made after death

If an heir withdraws money from a sole-owner account after the owner dies, or uses a deceased person’s credit card after death, most courts treat that as improper taking unless the heir had legal authority (for example, was an appointed personal representative or had express written authority). The funds are generally estate property even if an heir believes the money was “theirs.”

3. What the personal representative can do

The person appointed by the probate court as the personal representative (executor or administrator) has the duty to gather estate assets, pay valid debts, and distribute remaining assets according to the will or intestacy law. If money was removed after death, the personal representative can:

• Demand return of the funds from the person who withdrew them.
• Include the amount as an asset of the estate and seek recovery through the probate court.
• File a civil lawsuit (commonly for conversion or unjust enrichment) to recover the money.
• If appropriate, contact law enforcement to discuss potential criminal theft charges.

4. Bank and credit-card company responsibilities

Once notified of a customer’s death, banks and card issuers generally follow internal procedures for freezing accounts, refusing transactions, and directing claimants to the probate process or a personal representative. A financial institution that pays out funds after receiving proper notice of death may face liability. It is important for the personal representative to notify banks in writing and provide a death certificate.

5. Civil claims the estate can bring

Common civil remedies in South Carolina include:

• Turnover action through probate court to recover estate property.
• Civil suit for conversion (wrongful exercise of control over someone else’s property).
• Unjust enrichment or breach of fiduciary duty claims if the person had a formal role (e.g., power of attorney used after death).

6. Potential criminal consequences

Intentionally taking money from a deceased person’s account may also be a crime (theft, conversion, or fraud). The state’s criminal code covers theft and related offenses. If criminal conduct is suspected, the estate or family can report the matter to local police or the solicitor’s office for investigation.

7. Practical steps to recover funds

1. Preserve evidence: bank statements, account records, texts/emails, ATM receipts, and the death certificate.
2. Notify the bank and credit-card issuers in writing and provide a certified copy of the death certificate.
3. Open probate and seek appointment as personal representative (if not already appointed).
4. Demand return of the money in writing. If refused, file a turnover or civil action in probate or civil court.
5. Consider small claims court for smaller sums, or a civil suit for larger amounts. Discuss criminal referral with local law enforcement if theft is suspected.

8. Where South Carolina law comes into play

South Carolina handles estate administration and recovery under its probate and fiduciary laws. You can review the state probate and fiduciary statutes at the South Carolina Code, Title 62 (Probate, Trusts, and Fiduciary Relations): https://www.scstatehouse.gov/code/t62.php.

Criminal remedies related to theft and fraud are part of South Carolina’s criminal code: https://www.scstatehouse.gov/code/t16.php. A local attorney can point to the exact statutes and help you evaluate civil and criminal options.

Common scenarios (short illustrations)

1) Adult child withdraws $10,000 from a checking account titled only in the parent’s name after the parent dies and before probate. Result: The personal representative can demand the money back and can sue for conversion. The bank may be responsible if it paid after proper notice.

2) Person continues to use a credit card after the owner dies. Result: Charges posted after death are typically unauthorized. The credit-card company and estate must resolve who pays; the estate can seek reimbursement from the user.

3) Account was joint with right of survivorship and co-owner withdraws funds after death. Result: The co-owner may have a valid claim to the funds — this often depends on account wording and the bank’s records.

Helpful hints

• Act quickly. The longer improper withdrawals remain unaddressed, the harder recovery can become.
• Get certified copies of the death certificate and keep originals of all bank and credit-card records.
• Notify banks in writing and request written confirmation of any freeze or actions taken.
• Do not confront the person who withdrew funds without documentation or legal advice; preserve communications instead.
• If you are the personal representative, file for probate immediately and include disputed sums on the estate accounting.
• For small amounts, small-claims court or a demand letter may be efficient; larger or contested matters usually require attorney help and formal petitions in probate or civil court.
• Ask the bank for its records of the withdrawals and any notices it received — those records matter in court.
• If criminal intent is suspected (fraud, forged documents, or clear theft), consider contacting law enforcement or the solicitor’s office after consulting counsel.

Where to get help: A South Carolina probate or estate attorney can evaluate account titles, timing of withdrawals, and the best path for recovery (probate turnover, civil suit, or referral to prosecutors).

Disclaimer: This article explains general principles of South Carolina law and is for educational purposes only. It does not create an attorney-client relationship and is not legal advice. Consult a licensed South Carolina attorney about your specific situation.