Can the estate recover money an heir withdrew from a deceased parent’s bank account or charged to their credit cards?

Short answer: Yes — in most cases the estate (through the personal representative or executor) can try to recover funds that an heir took from a deceased parent’s bank accounts or charged on the decedent’s credit cards after death. Recovery can come through civil claims (for conversion, unjust enrichment, accounting or surcharge), adjustments in the probate distribution, or even criminal charges in some circumstances. Utah probate and criminal rules also affect how banks, credit card companies, and heirs must act when someone dies.

Why this matters

When someone dies, their money and accounts typically become part of their estate. Only the person appointed to manage the estate (the personal representative, sometimes called an executor or administrator) has authority to collect assets, pay valid debts, and distribute what remains to heirs or beneficiaries. If an heir takes money or uses credit after the death, that can interfere with the estate’s ability to pay debts and distribute assets fairly.

How Utah law governs the situation

Key legal frameworks that apply include Utah probate law (the Utah Uniform Probate Code), Utah criminal law on theft, and civil rules for torts and unjust enrichment. For general reference, see the Utah Code and Utah Courts probate information:

• Utah Code (Probate / Title 75): https://le.utah.gov/xcode/Title75/
• Utah Courts — probate how-to and forms: https://www.utcourts.gov/howto/probate/
• Utah Code (Criminal / Title 76): https://le.utah.gov/xcode/Title76/

Typical legal bases for recovery

Depending on the facts, the estate can pursue several remedies:

• Demand and repayment: The personal representative can first demand the heir return the funds or provide an accounting.
• Civil claims in probate court: The estate can sue the heir for conversion (wrongful taking or retention of property), unjust enrichment (recipient benefited at estate’s expense), or money had and received. The probate court can surcharge (charge) the heir for improper withdrawals, reducing the heir’s inheritance if appropriate.
• Setoff in distributions: If the person who took funds is also an intestate heir or beneficiary under the will, the personal representative can reduce that heir’s distribution by the amount taken.
• Criminal referral: If the taking involved intentional theft, the estate may report the conduct to law enforcement. Prosecutors can pursue theft charges independent of civil claims.
• Bank or creditor action: Banks can be asked to reverse wrongful transfers made after notice of death or when they paid without proper authority. Credit card issuers may pursue the person who incurred post-death charges if the card was not authorized under the account terms.

Common factual scenarios and how they are handled

Below are typical fact patterns and likely outcomes under Utah practice.

1) Heir withdrew cash or wrote checks from the decedent’s bank account after learning of the death

If the account was in the decedent’s name alone, withdrawals after death are usually improper unless the withdrawer had legal authority. A properly appointed personal representative should inventory the account and demand return of funds. If the heir refuses, the personal representative can sue in probate court for recovery. Banks sometimes freeze accounts once they are notified of a death; if the bank paid without requiring letters testamentary, the bank may have obligations too.

2) Heir used the decedent’s credit card after death

Charges made after the cardholder’s death are generally not valid obligations of the estate unless the cardholder had authorized the user (for example, an authorized user on the account). The card issuer may reverse unlawful charges or pursue the person who made the charges. The estate can also seek reimbursement from the person who made the charges.

3) Heir claims the money was a gift or joint account

Issues of ownership matter. Joint accounts with right of survivorship bypass probate and belong to the surviving joint owner. If the account was only in the decedent’s name and the heir claims an oral gift, the estate can challenge that with evidence. Documentation and timing are crucial.

4) Heir was acting as personal representative but took money improperly

A personal representative owes fiduciary duties to the estate and beneficiaries. If the representative improperly withdraws funds for personal use, the court can remove the rep, order an accounting, and surcharge (make them pay back) for losses. See the probate rules about duties and accountings in Utah probate law (Title 75).

Practical steps the estate should take right away

1. Obtain several certified copies of the death certificate.
2. Notify banks and credit card issuers in writing that the account owner died and request freeze on further withdrawals. Provide only to well-known financial institutions that have clear procedures for post-death accounts.
3. If you are or will be the personal representative, open a representative estate account and demand documentation for any withdrawals taken after death.
4. Preserve evidence: copies of bank statements, dates and amounts of withdrawals, emails, text messages, and any written authorizations.
5. Send a written demand to the heir who took funds, asking for return and an itemized accounting.
6. If the heir refuses, consult a probate attorney to discuss filing claims in probate court or referring the matter to law enforcement.

Timing, defenses, and limitations

Statute of limitations and defenses may apply. Common defenses include that the funds were a valid gift, joint account survivorship, or payments of valid debts. Statutes of limitation for torts and contract claims limit how long an estate can sue — verify applicable deadlines early. For general reference, search the Utah Code for limitations rules and consult an attorney promptly:

• Utah Code (search): https://le.utah.gov/xcode/

Costs and realistic recovery prospects

Recovery depends on the heir’s ability to repay, the traceability of withdrawn funds, and the strength of documentation. If the heir spent the money on nonrecoverable items, the estate may still obtain a judgment but collecting it could be difficult. Courts can sometimes offset inheritances or order garnishment to satisfy judgments.

When to involve law enforcement

If the taking appears intentional and fraudulent — for example, forging signatures, hiding the death, or knowingly making unauthorized transfers — report the facts and provide documentation to local law enforcement or the county district attorney. Criminal investigations can run alongside civil probate claims.

Helpful Hints

• Act quickly. Banks and credit card companies may reverse certain transactions if contacted promptly.
• Get certified copies of the death certificate early and provide them only to institutions that request proof of death under written procedures.
• Preserve all electronic and paper evidence: statements, ATM slips, text messages, emails, and witness names.
• Do not attempt complex recovery measures without counsel; improper steps can complicate probate or expose the estate to liability.
• If you are the personal representative, keep clear records of all account activity and communications to support any later claims or defenses.
• If the heir is insolvent, consider whether the cost of litigation is justified versus negotiating an agreed offset or settlement.
• Remember joint accounts and payable-on-death (POD) designations usually pass outside probate — check account titling carefully.

Where to get help in Utah

Contact a probate or estate attorney in Utah as soon as possible to review documents and advise on the best path: negotiation, probate court surcharge/accounting, or criminal referral. The Utah Courts website provides self-help information, but an attorney can evaluate specific facts and represent the estate in court.

Disclaimer: This article explains general Utah law concepts and common procedures. It is not legal advice and does not create an attorney-client relationship. For advice about a specific situation, consult a licensed Utah attorney.