Short answer

If an heir withdraws money from a parent’s bank account or charges a credit card after the parent dies, the money usually belongs to the decedent’s estate (unless the account automatically passed to someone else, such as a joint owner or a named beneficiary). The estate can pursue civil remedies in probate or civil court to recover the funds and, in some cases, the person may face criminal charges. Prompt action is important.

Detailed answer — what Vermont law and practice mean in plain language

Who owns the money right after a person dies?

When someone dies, money and assets titled solely in the decedent’s name generally become part of the decedent’s estate. The estate is the legal pool of assets that must be used to pay debts and then distributed to heirs or beneficiaries under the will or Vermont intestacy rules. Vermont’s probate laws govern how that process works; see Vermont statutes on probate and fiduciary matters: Title 14 — Probate, Trusts, and Fiduciaries.

Common exceptions where money doesn’t enter the estate

• Joint accounts with right of survivorship: the surviving joint owner usually owns the funds outright.
• Payable-on-death (POD) or transfer-on-death (TOD) designations: funds flow directly to the named beneficiary.
• Assets held in trust or assets with an identified nonprobate beneficiary (life insurance, retirement accounts) that name a beneficiary.

When an heir takes money after death — possible legal theories to recover the funds

Different legal paths exist depending on who took the funds and how:

• If the person was not authorized and simply withdrew or used estate funds: The estate (through the personal representative or successor) can sue for conversion, unjust enrichment, or breach of fiduciary duty if the taker was in a fiduciary role. Conversion is the civil claim for wrongful taking or use of property.
• If the person was the appointed personal representative (executor/administrator) and misused funds: The probate court can require an accounting, surcharge the fiduciary (make them repay estate losses), remove them as personal representative, and order other relief under Vermont probate rules. See Vermont probate statutes: Title 14 — Probate, Trusts, and Fiduciaries.
• If criminal behavior occurred: Unauthorized post-death withdrawals can be criminal theft or larceny under Vermont criminal law; the state can prosecute. See Vermont criminal statutes: Title 13 — Crimes and Criminal Procedure.

What the estate’s representative can do right away

1. Ask the bank or card issuer to freeze the account and provide a transaction history. Banks often will freeze an account once they receive a death certificate or notice of death.
2. If a personal representative (PR) is already appointed, ask the PR for a full accounting. If an heir took money and is refusing to return it, the PR can bring formal claims in probate or civil court.
3. If there is no PR yet, file for administration of the estate in probate court so the court can appoint a PR to act on the estate’s behalf.
4. Preserve evidence: copies of bank statements, dates and amounts of withdrawals, written communications, account agreements, and any death certificate or probate filings.
5. Consider a demand letter from the PR or the estate’s lawyer demanding return of funds before filing suit.

How a recovery typically works

The estate can recover funds through one or more of these routes:

• Probate court surcharge or accounting: If the person who took money is a fiduciary (PR), the probate court can order repayment and remove or penalize the fiduciary.
• Civil suit for conversion/unjust enrichment: The estate sues the taker for the value of what was taken. The court can order repayment plus possible interest, and sometimes other damages.
• Criminal complaint: If the facts support criminal theft, the estate or the PR can report it to law enforcement; criminal prosecution is in the state’s hands and may result in restitution orders.
• Bank liability claims: In some situations a bank that paid out funds without proper authorization may bear some responsibility; that depends on bank policies and the facts.

Practical examples (hypothetical)

Example A — Sole account, no PR: A parent dies owning an account in their name alone. A child withdraws $10,000 from that account the next week. The child’s withdrawal was wrongful. Once a PR is appointed, the PR can demand return and, if needed, sue for conversion in probate or civil court.

Example B — Joint account: A parent had a joint account with a child. After the parent dies, the surviving child keeps the money. In many cases the joint owner lawfully owns the account by right of survivorship and the estate cannot recover those funds.

Timing and practical limits

There are time limits (statutes of limitations) and costs to litigating recovery claims. Acting quickly preserves evidence and options. The exact deadlines and available remedies depend on the facts and applicable Vermont law, so consult an attorney promptly.

Where Vermont statutes and procedure come in

Vermont’s probate rules and statutes determine appointment of personal representatives, estate administration, accountings, and fiduciary duties. See Vermont statutes on probate and fiduciaries here: https://legislature.vermont.gov/statutes/title/14. If criminal theft is possible, state criminal statutes apply: https://legislature.vermont.gov/statutes/title/13.

Helpful hints — what you should do next

• Do not confront the person alone. Preserve written records of every communication.
• Contact the bank and request a transaction history and hold on disputed funds if possible.
• If you are or will be the personal representative, file for appointment in probate court quickly so you can act formally for the estate.
• Gather documentation: death certificate, account statements, joint account or beneficiary documents, and any powers of attorney (which end at death).
• Consider a demand letter from the PR or an attorney before filing suit. Sometimes a demand recovers funds without litigation.
• If fraud or theft occurred, consider filing a police report so law enforcement can evaluate criminal charges and possible restitution.
• Talk to a Vermont probate or trust & estate attorney. The Vermont Bar Association can help you find local counsel (see: Vermont Bar Association).