Challenging an Administrator Who Closed a Joint Bank Account Without Notifying Heirs — Arkansas

Detailed Answer

If an estate administrator closed a deceased person’s bank account that was held jointly and did not notify heirs, Arkansas law provides several paths to challenge that conduct. Which path applies depends on how the account was titled (for example, with right of survivorship or with a payable-on-death designation), whether the administrator was properly appointed by a probate court, and what the administrator actually did with the funds.

Key legal concepts you need to understand

• Joint account vs. survivorship: If the account was a joint account with right of survivorship, funds commonly pass directly to the surviving joint owner and typically are not estate property. If the account named a payable-on-death (POD) beneficiary, the POD beneficiary usually takes the funds directly. If the account was only in the decedent’s name, the bank may freeze it until the personal representative produces letters testamentary or letters of administration.
• Role of the administrator (personal representative): A court-appointed administrator or personal representative must follow Arkansas probate procedures, act in the estate’s best interest, and provide accountings to the court and interested parties when required.
• Possible wrongful acts: Closing an account and spending or moving funds without authority can amount to breach of fiduciary duty, conversion, or other civil claims. In extreme cases, it may trigger criminal liability.

Where Arkansas law controls administration and oversight

The probate statutes and court rules govern appointments, duties, inventories, and accountings for personal representatives in Arkansas. The state legislature and the Arkansas courts are the authoritative sources for those rules; you can start with the Arkansas Code and the Arkansas Judiciary’s probate resources:

• Arkansas Legislature (Arkansas Code)
• Arkansas Judiciary (probate court information and forms)

Practical steps heirs can take in Arkansas

Work through these steps quickly and methodically.

1. Collect key documents. Get the decedent’s death certificate, the bank account statements, account title information (how the account was titled), any will, and any probate court filings (letters of administration or testamentary). These facts determine who had legal rights to the money.
2. Confirm how the bank treated the account. Ask the bank in writing whether it treated the account as a survivorship account, POD account, or estate account; request a copy of their transaction history and any documents the administrator presented. Banks often have internal policies; obtaining their records is critical evidence.
3. Request an accounting from the administrator. If a personal representative was appointed, demand (in writing) an accounting of estate activity and an explanation for closing the account. Arkansas probate courts require administrators to file inventories and accountings; if the personal representative has not filed required documents, heirs can ask the court to compel them to do so.
4. Contact the probate court clerk. Ask whether an estate case exists and whether the administrator has filed an inventory or accounting. The clerk can also tell you what filings are pending and how to file a formal objection or motion.
5. File a petition or objection in probate court. If the administrator refuses to provide records or you suspect misappropriation, file a formal petition asking the court to: (a) require the administrator to file a full accounting, (b) freeze estate assets, or (c) remove the administrator for breach of duty. The local probate court has authority to supervise administrators and remedy breaches.
6. Pursue civil claims if necessary. If funds were taken or misused, heirs may sue the administrator for conversion, breach of fiduciary duty, or for an accounting and damages. The probate court may permit surcharge actions (monetary liability for misconduct) against an administrator who improperly closed or spent estate funds.
7. Consider criminal options if theft is suspected. If evidence suggests willful theft, converting estate funds, or other criminal acts, you may file a police report or contact the county prosecutor to request a criminal investigation for theft or related offenses.
8. Get professional help. Speak with an Arkansas probate attorney promptly. An attorney can evaluate title issues, file the appropriate motions in probate court, and, if necessary, prepare civil litigation or work with prosecutors.

What heirs commonly ask and how courts usually respond

• If the account was truly a survivorship or POD account and a named co-owner or beneficiary claims it, courts typically treat the account as passing outside probate. In that case, heirs who are not named co-owners or beneficiaries usually have no claim to those funds.
• If the administrator was appointed and then used estate funds improperly, the probate court can compel an accounting, order restitution, remove the administrator, and hold the administrator financially liable.
• If the administrator closed an account before being appointed, that action can still create legal problems for the administrator if they later sought appointment or tried to use funds without authority.

Timing and urgency

Act quickly. Records may be altered or funds moved. Deadlines for challenging fiduciary acts and for bringing civil claims exist—so contact the probate clerk or an attorney without delay.

Helpful Hints

• Document everything in writing. Save emails, letters, bank statements, and notes from phone calls (include dates, names, and content).
• Ask the bank for a formal written explanation of why the account was closed and copies of any documents the administrator provided to the bank.
• If you are an heir, request certified copies of any probate filings (letters of administration/testamentary, inventories, accountings) from the probate clerk’s office.
• Use certified mail or other tracked delivery for important requests to the administrator and the bank so you have proof of your attempts to resolve the issue.
• Speak with the probate clerk to learn local procedures and the exact filings needed to lodge an objection, compel an accounting, or ask the court to freeze assets.
• Consider a limited-scope consultation with a probate attorney if cost is a concern; many attorneys will review the situation and suggest the most efficient next step.
• Keep emotions in check. Courts respond to evidence and proper legal procedure; focus on collecting documents and following court processes.
• If immediate dissipation of assets is likely, ask an attorney about filing an emergency motion in probate court to freeze remaining assets while the court sorts out rights.

Resources: For Arkansas statutes and probate resources, see the Arkansas Legislature and the Arkansas Judiciary:

• Arkansas Legislature (Arkansas Code) — search under “Probate” or Title covering estates and personal representatives to find statutory duties and procedures.
• Arkansas Judiciary — probate court information, local court contacts, and forms.

Disclaimer: This article explains general principles of Arkansas law and provides practical steps heirs commonly take. It is not legal advice. For guidance tailored to your situation, consult a licensed Arkansas attorney.