Illinois: Recovering Money Taken from a Deceased Parent’s Bank Account or Credit Cards | Illinois Probate | FastCounsel
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Illinois: Recovering Money Taken from a Deceased Parent’s Bank Account or Credit Cards

August 14, 2025 6 min read

What happens when an heir withdraws money from a deceased parent’s accounts — can the estate recover it?

Detailed Answer

When a person dies, most of the decedent’s bank accounts, credit card accounts, and other assets become part of the decedent’s estate unless title automatically passes to someone else (for example, a joint account with rights of survivorship or a designated beneficiary such as a payable-on-death (POD) account). Under Illinois law, the person or entity charged with handling the estate (the personal representative or executor) has the authority to collect estate assets and recover property that belongs to the estate.

Key legal principles and possible remedies:

  • Ownership versus survivorship. If an account was a true joint account with rights of survivorship, the surviving joint owner typically becomes the legal owner immediately on death. If the account was individually owned by the decedent (no survivorship or POD designation), the funds belong to the estate and must be administered through probate or an appropriate estate procedure.
  • Unauthorized withdrawals are estate property taken without permission. If an heir withdraws money from an account that is part of the estate after the decedent dies, that withdrawal is ordinarily treated as an improper taking. The personal representative can pursue civil claims to recover the money (for example, actions for conversion, unjust enrichment, or for an accounting), and may ask the probate court to order turnover of the funds to the estate.
  • Probate remedies. The personal representative can file a petition in probate court to compel return of estate assets, obtain an order requiring the heir to account for and return funds, and, if necessary, seek money judgments. The probate process gives the representative statutory powers to marshal assets, pay valid debts, and distribute remaining property according to the will or Illinois intestacy rules (see the Illinois Probate Act, 755 ILCS 5/).
  • Civil causes of action. The estate can sue the heir in civil court for conversion (taking and using someone else’s property), restitution or unjust enrichment (return of benefits improperly received), and breach of any fiduciary duty if the heir occupied a position of trust. Successful claims can result in a money judgment and post-judgment collection remedies (garnishment, levy, liens).
  • Criminal exposure. In some cases, an heir’s taking may also violate criminal statutes. Under Illinois law, knowingly taking property that belongs to another can give rise to theft or related criminal charges (see the Illinois Criminal Code, 720 ILCS 5/). A criminal prosecution is separate from the estate’s civil claim but may support the estate’s position.
  • Credit card transactions and debts. Credit cards are creditor claims against the estate. If an heir used a decedent’s credit card after death, the credit card company may seek repayment from the estate or from the card holder (issuer rules vary). If the heir knowingly used the card without authorization after the account holder’s death, the issuer might refuse to honor those charges and the heir could face civil liability or criminal charges. The estate may also assert a claim against the heir for the amount of unauthorized charges.
  • Banks and financial institutions. Banks commonly freeze accounts when presented with a death certificate. Banks often follow account titling and beneficiary designations when paying out funds. If a bank improperly released funds, the estate might have a claim against the bank. Conversely, if a bank complied with a surviving joint owner or valid beneficiary designation, the estate’s ability to recover may be limited.
  • Time sensitivity and statute of limitations. The estate should act promptly. Illinois law imposes time limits for bringing various claims. The probate process streamlines certain claims, but waiting too long may bar recovery. Consult an attorney to determine applicable deadlines.

Relevant Illinois statutes and resources:

Typical steps the estate (through the personal representative) can take

  1. Identify and secure accounts: Notify banks and card issuers of the death and provide the death certificate so accounts are frozen or flagged.
  2. Document the withdrawals: Keep bank statements, transaction records and any communications with the heir or the bank.
  3. Demand return of funds: The personal representative (or probate attorney) should send a written demand for return of the funds and an accounting.
  4. File a probate petition or account action: If informal efforts fail, bring a petition in probate court asking the court to order the heir to return estate property or to account for funds taken.
  5. Consider civil suit for conversion/unjust enrichment: If necessary, sue in civil court to recover the money; where amounts are modest you may pursue small-claims court.
  6. Report potential criminal conduct: If the taking appears fraudulent or intentional, the representative can report the matter to law enforcement; prosecutors decide whether to charge a crime.
  7. Collect and enforce judgments: If the estate obtains a judgment, use post-judgment remedies (garnishment, levies) to recover funds.

Common complications

  • If the account was joint with rights of survivorship or had a beneficiary designation, recovery may not be possible from the surviving joint owner or beneficiary.
  • If the heir claims they paid funeral bills or debts with the withdrawn funds, courts will consider whether those expenditures were reasonable and made for the estate’s benefit.
  • Banks sometimes release funds to someone who appears to have authority; establishing improper release may require litigation and proof.
  • Family disputes can become expensive — litigation costs can consume estate value, so weigh costs and benefits before suing.

Helpful Hints

  • Act quickly: freeze accounts and gather records right away.
  • Preserve evidence: save bank statements, texts, emails and records of withdrawals or card charges.
  • Do not confront the heir aggressively; let the personal representative or an attorney communicate demands.
  • If you are the personal representative, document every step you take to marshal assets and if needed, seek court orders to compel disclosure and turnover.
  • If the amount is small, consider small-claims court for faster resolution; for larger amounts, use probate or civil courts as appropriate.
  • Ask whether the bank followed the account titling and beneficiary instructions — that affects recovery options.
  • Consult an Illinois probate or civil attorney early — they can explain deadlines, the best forum, and likely costs versus recovery.

Disclaimer: This article explains general Illinois law and common remedies but is not legal advice. It does not create an attorney-client relationship. For advice on a specific situation, consult a licensed Illinois attorney who handles probate and estate matters.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.