Alaska: Challenging a Sibling's Use of a Deceased Parent's Bank Account for Mortgage Payments

Detailed Answer — What Alaska law generally allows and what you can do

When a parent dies, money in an account that is held solely in the decedent’s name typically becomes part of the decedent’s estate. Under Alaska law, only the personal representative (often called an administrator when no will is involved) has the ordinary legal authority to collect estate assets, pay debts, and manage payments such as a mortgage on estate property. See Alaska Statutes, Title 13 — Estates and Trusts for the statutes governing appointment and duties of a personal representative (Alaska Statutes, Title 13).

That general rule means a sibling who is not appointed as the estate’s personal representative normally has no automatic legal right to withdraw funds from a deceased parent’s account to pay the mortgage. There are important exceptions and practical distinctions, and the correct response depends on key facts you must quickly discover:

• If the account was a joint account (joint tenancy with right of survivorship) or had a payable-on-death (POD) or transfer-on-death designation, the funds may pass outside probate to the surviving joint owner or named beneficiary. In that case the person named on the account may be legally entitled to use the funds. Ask the bank for the account title and any beneficiary designations.
• If the sibling is acting under a valid power of attorney, note that most powers of attorney terminate automatically when the principal dies. A POA does not generally authorize post-death withdrawals from accounts in the decedent’s name.
• If the sibling has been appointed by the probate court as a personal representative (or is serving as a court-authorized temporary administrator), they may be authorized to pay estate expenses, including mortgage payments, subject to court supervision. See Alaska Statutes, Title 13 for appointment and scope of duties (https://www.akleg.gov/basis/statutes.asp#13).

If your sibling is withdrawing funds before appointment and there is no joint title, POD beneficiary, or court authorization, those withdrawals could be improper. Possible legal claims include conversion (wrongful taking of estate property), breach of fiduciary duty (if the sibling later becomes a fiduciary), and requests to the probate court for an accounting and recovery. You may also be able to ask the probate court for emergency relief to protect estate assets while the court considers appointment of a personal representative.

Practical steps to take right away

1. Contact the bank promptly. Ask whether the account was titled solely in the deceased’s name, was joint, or had a POD/TOD beneficiary. Ask whether any withdrawals have been made and request transaction records in writing.
2. Preserve evidence. Save copies of bank statements, mortgage statements showing who is listed as obligor, and any communications from your sibling about payments.
3. Check for a will and any estate documents. A will may name a personal representative; if so, that person should petition the probate court for formal appointment.
4. Consider filing (or asking someone to file) a petition for appointment as personal representative or for emergency (temporary) administration with the Alaska superior court in the county where your parent lived. The court can appoint a temporary administrator to protect assets while the probate process proceeds. See Alaska Courts’ probate information for filing basics (https://courts.alaska.gov/shc/probate.htm).
5. If funds were removed and you believe the removals were improper, consult a lawyer about asking the probate court to: order an accounting, freeze remaining funds, require the return of money taken from the estate, and impose a surcharge if appropriate.
6. Avoid confronting the sibling in a way that might make recovery harder; let the bank and court handle freezes or account holds when possible.

How the probate process fits in

Probate is the court process that identifies the deceased’s assets, determines who is authorized to manage them, pays valid debts, and distributes remaining property. Until the court appoints a personal representative (or a temporary administrator is appointed in an emergency), no one — other than persons entitled to the funds by designation (joint owner, POD beneficiary) — should be spending estate funds for long-term obligations.

If you are worried about an immediate risk to the estate (for example, someone is emptying the account), the probate court can often provide interim relief faster than waiting for a full probate hearing. Ask the court clerk about emergency petitions and temporary administration procedures. See general probate procedures on the Alaska court website (https://courts.alaska.gov/shc/probate.htm).

Possible outcomes and remedies

• If the account was jointly held or had a beneficiary, the sibling may lawfully control the funds.
• If withdrawals were improper, the court can order return of funds, require an accounting, remove or discipline a personal representative, and award money damages for conversion or wrongful taking.
• The bank may be asked to produce records and may be liable if it disbursed funds without appropriate documentation or contrary to its own policies.
• Civil remedies are most common; in some cases criminal charges (theft) may be possible, but that is handled by law enforcement and prosecutors.

Helpful Hints

• Bank title matters most: verify whether the account was sole, joint, or payable on death. That often decides the issue quickly.
• Power of attorney ends at the principal’s death. Don’t assume a POA gives post-death access.
• Act quickly but calmly: prompt documentation and court action preserve your rights and the estate’s value.
• Keep communications factual. Ask the bank for written statements of any withdrawals and request copies of transactions.
• Consider filing for appointment yourself if no one else will and you want to protect the estate. The Alaska superior court handles probate petitions. See the court’s probate page for local filing steps and forms (https://courts.alaska.gov/shc/probate.htm).
• Get lawyer help early if significant sums are involved, the sibling refuses to cooperate, or the facts are contested. A lawyer can prepare emergency filings, request account freezes, and pursue recovery if needed.

Disclaimer: This article is educational only and is not legal advice. It does not create an attorney-client relationship. For advice about your specific situation, consult a licensed attorney in Alaska.