Can the estate recover money an heir withdrew from a parent’s bank account or credit cards after death?

Short answer: Yes — in most cases the estate can pursue recovery. Whether recovery is straightforward depends on how the accounts were titled, whether beneficiaries were designated, whether a personal representative (executor) has been appointed, and whether the withdrawal was authorized. Colorado law gives the estate civil remedies (and sometimes criminal remedies exist) to recover funds taken without legal authority.

Detailed answer — how recovery works under Colorado law

Start with two basic facts: first, money in a decedent’s bank account and charges on a decedent’s credit card are part of the decedent’s assets and obligations unless they passed outside the probate process by operation of law (for example, as a joint-account right of survivorship or by a payable-on-death beneficiary). Second, only a person with legal authority to act for the estate — a personal representative (sometimes called an executor) — may lawfully manage, collect, and distribute probate assets.

1. Who owned or controlled the accounts at death?

Joint accounts with right of survivorship: Funds usually pass to the surviving joint owner immediately and are not estate property. If the surviving joint owner withdraws money, that may be lawful if they truly held the account as joint with right of survivorship.
Payable-on-death (POD) or beneficiary-designated accounts: Funds go to the named beneficiary and are not part of the probate estate. Withdrawals by non-beneficiaries are wrongful.
Individual accounts in the decedent’s name: These are probate assets. After death, transfers or withdrawals by anyone other than an authorized representative are generally unauthorized.

2. What authority did the person who withdrew funds have?

If the person was the decedent’s appointed personal representative and followed legal procedures for collecting and distributing assets, withdrawals may have been appropriate. If the person was not appointed or acted outside the authority granted by the court (or by the decedent’s will or power of attorney — which ends at death), the withdrawal is likely unauthorized.

3. Typical remedies the estate can use in Colorado

Civil demand and restitution: The personal representative can demand return of the funds and reimburse the estate. If the person refuses, the estate can file a civil lawsuit to recover money taken without authority on theories such as conversion (wrongful taking), unjust enrichment, or breach of fiduciary duty (if the person had a fiduciary role).
Probate surcharge: If the person who took the money later becomes (or was) a personal representative and misused estate funds, a court can “surcharge” that fiduciary — require repayment plus interest and possibly remove them from the role.
Criminal liability: Taking property that does not belong to you may also expose the person to criminal charges (theft). Colorado criminal statutes prohibit obtaining property by deception or wrongful taking; prosecutors may pursue charges where the evidence supports them.
Bank claims and record preservation: The estate can subpoena bank records, and banks often have policies to freeze accounts after being notified of a death. The bank may also have liability if it improperly released funds to someone not authorized.

4. Practical issues that affect recovery

Was there a formal probate opened? If not, the estate should generally open probate (or a small-estate process when eligible) so a court can appoint a personal representative to act on the estate’s behalf.
Did the heir spend the money (dissipation) or transfer it to someone else? Recovery can become harder if funds were spent on non-recoverable items, but claims for unjust enrichment or tracing may still succeed.
Timing and statutes of limitation: Civil claims must be filed within the statute of limitations. The correct deadline depends on the cause of action, so acting promptly is important.

5. How the estate starts recovery in Colorado

Notify the bank and credit card companies of the death in writing and request account freeze or statements. Many banks will freeze accounts on proof of death.
If necessary, open probate or a small‑estate proceeding so a personal representative can act for the estate. Colorado probate law governs who may be appointed and what powers the personal representative has; see Colorado Revised Statutes, Title 15 (Probate, Trusts, and Fiduciaries) for the probate code and appointment procedures: Colorado Revised Statutes (CRS).
The personal representative (or estate attorney) can demand return of the funds and, if refusal continues, file a civil action for conversion, unjust enrichment, or related claims. Colorado’s criminal code also prohibits theft and related offenses; a prosecutor may be contacted if criminal conduct is suspected. See Colorado statutory materials on crimes and sentencing: Colorado Revised Statutes (criminal statutes).
Collect records (bank statements, transaction history, communications) to show when the withdrawals occurred, who authorized them (if anyone), and how the funds were used.

Common scenarios and likely outcomes

These are hypothetical examples to illustrate how the law usually applies:

If an adult child took all money from a parent’s individual account two weeks after the parent died and there was no POD or joint owner: the estate (through the personal representative) can demand repayment and sue for conversion. The bank records will show the withdrawal timing and help prove the claim.
If the decedent held the account jointly with the withdrawing heir and it had right-of-survivorship language: the surviving joint owner may have a lawful claim to the funds, and the estate may not be able to recover them as probate assets.
If the heir was authorized to pay the decedent’s bills but sustained personal use of funds after death: that is likely improper and recoverable; courts treat post-death use differently from routine bill-paying while the decedent was alive.

Helpful Hints

Act quickly. Freeze accounts and get statements as soon as possible to preserve evidence.
Don’t confront aggressively. Make a written demand through the personal representative or an attorney to preserve legal claims.
Check account titles and beneficiary designations. These control whether an asset is probate property.
Open probate or use Colorado’s small-estate procedures when appropriate so an authorized representative can act for the estate. See the Colorado Revised Statutes for probate procedures: CRS (Title 15).
Collect documentation: death certificate, bank and card statements, any communications, and documentation of how money was spent after the death.
Consider both civil and criminal avenues. Civil suits recover funds for the estate. Criminal charges are for public enforcement of theft laws and require a prosecutor’s decision.

Where to get help

If you are dealing with missing estate funds in Colorado, consider consulting a Colorado probate attorney who can:

Explain whether assets are probate property.
Help open probate or a small‑estate proceeding and get a personal representative appointed.
Send demand letters, file civil claims, and coordinate with law enforcement when appropriate.

Important disclaimer: This article is informational only and is not legal advice. Laws change and every situation is different. For advice about a specific case, consult a licensed Colorado attorney.