Detailed Answer — How Indiana law treats joint accounts and what you can do

First, a few basic points about ownership. A bank account titled jointly can be either a true joint tenancy with right of survivorship or simply a convenience account. In a right-of-survivorship joint account, the surviving co-owner generally becomes full owner when one owner dies. If the account is a payable-on-death (POD) account, funds pass to the named beneficiary. If the account is part of the deceased person’s probate estate (because the account was not survivorship/POD or the bank treated it as estate property), the personal representative or administrator has duties under Indiana probate law to handle funds for the estate’s benefit.

Under Indiana law, probate and fiduciary matters are governed by the Indiana Probate Code (Title 29). For an overview of the statutes that control administration of estates, see Indiana Code Title 29 (Probate): https://iga.in.gov/laws/2024/ic/titles/29.

Why a bank might close or freeze an account

• Banks often freeze accounts after learning of an accountholder’s death to avoid improper withdrawals while ownership is uncertain.
• A bank may accept a request from someone claiming authority — for example, a person holding letters of administration or a court order — and rely on those documents to close or disburse funds.
• If the bank regarded the account as estate property rather than surviving-joint-owner property, it may require probate paperwork before releasing funds.

Immediate steps to take

1. Collect documents. Get a certified copy of the death certificate, the account title (or last bank statement), any written account agreements, and any documents the administrator provided to the bank (letters of administration, court orders, etc.).
2. Ask the bank for a written explanation. Request in writing why it closed the account and what documents it relied on. Ask for copies of any bank forms or release authorizations it processed.
3. Identify whether the account was survivorship, POD, or part of the estate. Language on the account title or beneficiary designation will usually say. If the account title named the decedent and a surviving co-owner without POD language, the presumption may be survivorship, but the bank’s records and Indiana law determine the result.
4. Preserve evidence. Save emails, letters, and bank statements. If the administrator removed funds, note the date, amounts, and any receipts.

Administrative and court remedies in Indiana

If the bank or the administrator acted improperly, you can pursue several remedies:

• Demand letter. Send a written demand to the administrator and the bank asking for return of funds or a full accounting. Include a deadline.
• Probate court petition. File a petition in the county probate court where the decedent resided. Typical petitions include requests for an accounting by the administrator, orders compelling turnover of estate property, and petitions to remove or surcharge a personal representative for mismanagement. The probate code gives the court authority to review fiduciary conduct and order relief. See Title 29 for rules about administration and fiduciary duties: https://iga.in.gov/laws/2024/ic/titles/29.
• Civil claims. If someone converted funds (took them unlawfully), heirs can bring a civil claim for conversion or breach of fiduciary duty in circuit or superior court.
• Criminal referral. If the conduct looks like theft, you may report it to local law enforcement or the county prosecutor for potential criminal investigation.
• Regulatory complaint. You can submit a consumer complaint to the Indiana Department of Financial Institutions about a bank’s handling of the account: https://www.in.gov/dfi/.

Common questions heirs ask

Q: Can the administrator legally close the account without telling heirs?
A: It depends. If the administrator has proper court appointment and the court authorized collection of estate funds, the administrator may be allowed to access estate accounts. But the administrator must follow duties under probate law (inventory, accountings) and cannot take funds for personal use. If the account was not estate property, closing it or removing funds could be improper.

Q: What if the bank says the surviving joint owner owned the account outright?
A: If the bank treats the co-owner as sole owner and the funds are already transferred, reversing that can be harder. You should promptly gather evidence and consult the probate court about whether a recovery action or surcharge against the administrator is appropriate.

Q: How fast do I need to act?
A: Act quickly. Statutes of limitations and the risk that funds will be spent or transferred make prompt action important. Even before filing court papers, gather documentation and send written demands.

Papers the probate court may require

• Death certificate (certified copy).
• Bank account statements and account title documentation.
• Letters of administration or other documents the administrator used.
• A verified petition or complaint describing the alleged improper acts and requested relief (accounting, turnover, removal, damages).

For forms and basic probate procedures, the Indiana Judicial Branch has self-service resources for probate matters: https://www.in.gov/judiciary/self-service/probate/.

When to consult an attorney

Speak with an experienced probate or estate litigation attorney if the administrator removed or spent significant funds, if the bank refuses to explain its actions, or if the situation involves commercial transactions (e.g., sale of property). An attorney can file the correct petition in probate court, preserve evidence, and calculate damages. If cost is a worry, many attorneys offer a short paid consultation or limited-scope representation to help prepare a court filing.

Important statute reference: Indiana’s probate statutes (Title 29) control appointment of administrators, fiduciary duties, and court powers over estates. See the Indiana Code: https://iga.in.gov/laws/2024/ic/titles/29.

Disclaimer: This article explains general principles under Indiana law and is not legal advice. For advice about your specific facts, consult a licensed Indiana attorney.

Helpful Hints

• Act quickly. Time-sensitive evidence (bank records, electronic logs) can vanish or be harder to recover later.
• Get everything in writing. Ask the bank to explain its actions in a written letter and keep copies of all communications.
• Gather proof of account ownership. Old statements, signature cards, and beneficiary or POD designations help show whether the account was a survivorship or estate asset.
• File a probate petition if there is no personal representative. If someone has taken control without court authority, the court can appoint an administrator and order remedies.
• Consider an attorney for quick procedural relief. Probate courts can issue temporary orders to preserve estate assets while the dispute is resolved.
• Use state resources. File a bank complaint with the Indiana Department of Financial Institutions if you suspect the bank mishandled the account: https://www.in.gov/dfi/.
• Keep calm and document losses. Note dates, amounts, and names of people involved. This list will help any attorney or investigator you hire.