Detailed Answer
When a person who held bank accounts or credit cards dies, who owns the money and who can lawfully use the accounts depends on how the accounts were titled and whether someone had authority to act after death. Under Arizona law, funds that belonged solely to the decedent generally become part of the probate estate unless a valid nonprobate transfer applies. If someone withdraws funds or uses credit cards after the owner’s death without legal authority, the estate (through the personal representative) normally has several civil and sometimes criminal remedies to recover the value.
Which accounts are part of the probate estate?
- Solely-titled accounts (in the decedent’s name only): these normally belong to the estate and must be collected by the personal representative and distributed according to the will or Arizona intestacy rules.
- Joint accounts with right of survivorship: these usually pass immediately to the surviving co-owner and do not become probate assets.
- Payable-on-death (POD) / Transfer-on-death designated accounts: these pass directly to the named beneficiary and bypass probate.
- Trust accounts: if the decedent’s funds were held in a living trust, the trustee handles distribution under the trust terms.
For a broad overview of Arizona’s probate statutes see the Arizona Revised Statutes, Title 14 (Estates and Protected Individuals): https://www.azleg.gov/arsDetail/?title=14. The Arizona Courts probate pages also explain how probate and nonprobate transfers work: https://www.azcourts.gov/probate.
Unauthorized withdrawals and credit-card charges after death
If a person withdraws money from a decedent’s account that belonged to the estate (a solely-titled account) or makes charges on a credit card after the cardholder’s death, those actions can be:
- Civil conversion or unjust enrichment — the estate can sue to recover the money or its value.
- Grounds for a claim in probate — the personal representative files an inventory, and the estate can assert the person stole or misappropriated estate property.
- Criminal conduct — depending on the facts, state theft or fraud statutes may apply; see Arizona criminal statutes (Title 13) for theft/fraud offenses: https://www.azleg.gov/arsDetail/?title=13.
Who can sue or press charges?
The personal representative (executor or administrator) has the authority and duty to collect estate assets, preserve them, and pursue claims belonging to the estate under Arizona probate law. If someone other than the personal representative believes they have been harmed, they should coordinate with the personal representative or consult an attorney. Criminal complaints for theft can be brought to local law enforcement or the county attorney.
Typical remedies
- Demand letter and repayment: often the estate (through counsel or the personal representative) will first demand return of funds.
- Probate accounting and inventory: the personal representative includes missing funds on the estate inventory and can pursue recovery as an estate claim.
- Civil lawsuit for conversion, money had and received, or unjust enrichment: the estate can sue the person who took the funds to recover their value and possibly interest.
- Criminal referral: if facts suggest theft or fraud, the estate can report the conduct to law enforcement for investigation.
- Offsetting creditor claims: if the person who withdrew funds claims an authorized debt (for example, the decedent owed them money), the estate will evaluate that claim under probate procedures.
Practical issues and defenses
Common complicating factors include (1) whether the person withdrawing funds was a co-owner or had legal authority (e.g., named as a joint account holder or had power of attorney — powers of attorney end at death), (2) whether the person reasonably believed they had a right to the funds (family settlements sometimes arise), and (3) whether the amount is small and can be resolved informally. Even if a family member believes they had an oral agreement to use money, courts generally require proof.
What to do first (steps the estate should take)
- Identify and preserve records: collect bank statements, transaction histories, ATM receipts, and credit-card statements.
- Notify banks and card issuers of the death and request a freeze or closure of accounts to stop further withdrawals.
- Locate and appoint a personal representative (if not already done) and open probate if needed so the estate has legal standing to act.
- Send a formal demand for repayment and, if necessary, file a civil action or a criminal complaint.
- Work with an attorney experienced in probate and estate litigation to evaluate claims, preserve evidence, and decide whether to pursue civil recovery or criminal referral.
Arizona probate law gives the personal representative the authority and duty to collect assets and pursue claims for the estate. For general reference to Arizona probate procedures, see Title 14 of the Arizona Revised Statutes: https://www.azleg.gov/arsDetail/?title=14. For criminal statutes related to theft or fraud, see Title 13: https://www.azleg.gov/arsDetail/?title=13.
Important caveats
Procedures and outcomes depend on the exact facts: account titles, written beneficiary designations, the timing of withdrawals, whether the person was an executor, and applicable statutes of limitation. Because civil remedies, probate filing requirements, and criminal investigations differ by situation, the estate should consult a probate or civil litigation attorney promptly.
Disclaimer: This article explains general legal principles under Arizona law for educational purposes only. It is not legal advice and does not create an attorney–client relationship. For advice about a specific situation, consult a licensed Arizona attorney.
Helpful Hints
- Act quickly. Notify banks and card companies immediately after learning of the death to limit further transactions.
- Gather documentation. Bank and card statements, deposit slips, photos of cards, and communications are critical evidence.
- Determine account ownership. Look for POD/TOD designations, joint owners, and trust ownership before assuming funds belong to the estate.
- Keep clear records. The personal representative should maintain careful records of all estate receipts and disbursements.
- Use formal demands. A written demand for return of funds is inexpensive and often prompts repayment without litigation.
- Consider small-claims or probate-court remedies for modest sums to limit legal costs.
- If criminal conduct is suspected, preserve evidence and report promptly to local law enforcement or the county attorney.
- Talk to a probate attorney early. Small differences in account title or timing can change the legal result.