Hawaii — Challenging a Sibling’s Use of a Deceased Parent’s Bank Account

Detailed Answer

This section explains what matters, what your legal options are in Hawai‘i, and the practical steps to protect estate assets.

Who can use the deceased person’s bank funds?

• If the account was owned solely by the deceased, funds typically become part of the decedent’s estate on death. A private person (including a sibling) normally has no authority to spend those funds for personal use unless the person is the appointed personal representative (sometimes called administrator or executor) or has some other valid legal authority (for example, a survivorship/joint account right or a properly completed payable-on-death designation).
• If the sibling is a joint account holder or the account names a payable-on-death (POD) beneficiary, the bank may allow access by the joint owner or transfer to the POD beneficiary without probate.
• If the sibling is acting under a power of attorney (POA), the POA ends at the principal’s death; a POA does not give authority to handle the decedent’s estate after death unless the POA contains language that is invalid under law — generally the POA stops at death in Hawai‘i.

What Hawaii law says about appointment and duties

Hawai‘i’s probate rules and the duties of a personal representative are set out in the Hawaii Revised Statutes (Probate/Decedents’ Estates). The court-appointed personal representative has authority to collect estate assets, pay debts and expenses, and distribute remaining assets according to the will or intestacy rules. See Hawaii Revised Statutes, Chapter 560 (Probate).

(Statutes and detailed rules are available from the Hawaiian legislature: HRS Chapter 560 — Probate.)

Is payment of the mortgage from the account allowed before appointment?

Even if mortgage payments help protect the decedent’s home from foreclosure, unauthorized use of estate funds may still be improper. A court will look at the legal authority the sibling claims to act under and whether the payments benefit the estate. If a person without authority uses estate funds, heirs or the later-appointed personal representative may seek repayment or other remedies.

Immediate practical steps you can take now

1. Preserve evidence: download or print bank statements, cancelled checks, payment records, emails or texts, and any paperwork the sibling claims gives authority (e.g., account signature card, POA, or joint-account paperwork).
2. Contact the bank: notify the bank of the death in writing and ask whether the account has been frozen, whether the sibling has withdrawal rights, and what documentation the bank requires before releasing funds (banks commonly require certified copy of death certificate and letters testamentary/administration).
3. Request an accounting: ask the sibling in writing to provide a complete accounting of withdrawals and uses of the account since the death.
4. File for appointment of a personal representative: as an interested person (heir or creditor), you can file a petition in the appropriate Hawai‘i circuit court to open probate and seek appointment. Once appointed, the personal representative has formal authority and must account for estate funds.
5. Seek emergency court relief when needed: if assets are being squandered or removed, the court can issue temporary orders (including temporary restraining orders or orders to freeze assets or require turnover) to protect estate property while the probate case proceeds.

Possible legal claims and remedies

• If the sibling withdraws funds without authority, interested persons can ask the court for an accounting and may bring claims for conversion, unjust enrichment, or breach of fiduciary duty (once a representative is appointed).
• The court may order repayment, restitution, or other equitable relief and can remove or deny authority to a person who improperly handled estate assets.

Practical limits and timing

Courts will balance the need to protect estate assets with practical considerations (for example, paying mortgage to avoid foreclosure may be reasonable if done to preserve estate property). However, those acting for themselves without appointment risk later having to reimburse the estate or face court sanctions. If the estate is small, Hawai‘i law has simplified or summary procedures that may speed appointment and access to funds — check the probate statutes for rules that apply to small estates.

When to get a lawyer

Consult an attorney if the estate assets are significant, if your sibling refuses accounting or refuses to stop withdrawing funds, if foreclosure is imminent, or if you want to file a contested petition for appointment. A probate attorney can file petitions, ask the court for temporary relief, and help calculate damages and claims against a sibling who misused funds.

For general court information and probate forms, see the Hawai‘i State Judiciary: Hawai‘i State Judiciary.

Disclaimer: This article explains general Hawai‘i probate concepts and common options. It is not legal advice. For advice about a specific situation, contact a licensed attorney in Hawai‘i.

Helpful Hints

• Do not rely on a power of attorney after the principal dies — it usually ends at death.
• Ask the bank in writing whether the account is joint, POD, or frozen; get the bank’s requirements for releasing funds in writing.
• Collect documentation promptly: bank statements, payment histories, mortgage statements, and any written communications about the account.
• If foreclosure is imminent, tell the lender you are taking steps to open probate and protect the estate — lenders sometimes offer short-term forbearance when the estate is being administered.
• Consider filing a simple, formal petition for appointment as personal representative (or to have someone appointed) to get court authority and immediate protections for estate assets.
• Keep communications civil and document everything — courts pay attention to whether heirs tried to work things out before seeking formal relief.
• If money was used to preserve estate property (e.g., mortgage to avoid losing the home), the court may consider that in deciding whether funds must be repaid; still, formal accounting will usually be required.