Iowa: Challenging a Sibling’s Use of a Deceased Parent’s Bank Account for Mortgage Payments | Iowa Probate | FastCounsel
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Iowa: Challenging a Sibling’s Use of a Deceased Parent’s Bank Account for Mortgage Payments

August 13, 2025 6 min read

Overview

When a parent dies, handling their bank accounts and paying estate bills (like a mortgage) must follow Iowa probate rules. If a sibling withdraws money or uses the decedent’s account before a court appoints a personal representative (administrator or executor), that use can raise civil and criminal issues. This FAQ-style guide explains what typically applies under Iowa law, what steps you can take, and when to involve a lawyer.

Detailed Answer

Who controls a deceased person’s bank account? In Iowa, the person named on the account as owner continues to have control only while alive. After death, the account’s ownership depends on how the account was titled:

  • Joint accounts with right of survivorship or payable-on-death (POD) designations usually pass outside probate to the surviving co-owner or named beneficiary.
  • If the account was solely in the decedent’s name (no POD, no valid joint right of survivorship), the money is estate property and should be administered through probate.

Whether the sibling had lawful authority to use the account depends on the account title and any legal authority. A power of attorney (POA) ends at death, so a POA does not authorize post-death withdrawals. Only a properly appointed personal representative (letters of appointment) or a surviving co-owner/beneficiary can lawfully control estate bank funds.

Is withdrawing funds or paying the mortgage before appointment allowed? Generally no. If the sibling was not a co-owner or beneficiary and was not appointed by the court, withdrawals and payments can be treated as unauthorized. Such actions can be:

  • A civil wrong (conversion or unjust enrichment) for which you can seek recovery.
  • Potentially criminal (theft or fraud) depending on intent and amount.

That said, courts sometimes look at whether the payment preserved estate property (for example, preventing foreclosure on estate property) and whether the person can be reimbursed through the estate if they later account for the funds. But reimbursement usually requires court approval as part of the estate administration.

Immediate legal tools and remedies available in Iowa

  • Contact the bank and request a records freeze. Banks commonly freeze accounts after they learn of a customer’s death until they receive letters of appointment. If the bank has paid out, it may be required to supply records and may be liable if it improperly paid a third party.
  • Seek appointment as personal representative or ask the court to appoint one quickly. Once appointed, the personal representative has statutory authority to recover estate assets and account for funds.
  • File an emergency or temporary petition with the probate court asking for a temporary personal representative or expedited appointment if urgent action is needed to protect estate assets.
  • Send a written demand to the sibling asking for accounting and return of funds. Keep a copy of the demand and all account statements.
  • File a civil claim for conversion, money had and received, or unjust enrichment if the sibling refuses to return funds. You may also preserve the claim by raising it in probate once an estate case is opened.
  • Consider reporting possible theft or fraud to law enforcement if the withdrawals appear deliberately wrongful.

Relevant Iowa law—where to look

Probate administration and the duties and authority of personal representatives are governed under Iowa’s probate statutes (see Iowa Code Chapter 633). Criminal theft and property offenses are under Iowa Code Chapter 714. If you need to act quickly, consult the probate rules and local district court procedures for emergency appointments.

Useful statute references:

Practical example (hypothetical)

Hypothetical facts: A parent dies owning a bank account solely in their name and a mortgage on the family home. Sibling A withdraws $6,000 from that account to pay two months of mortgage payments before the court has appointed an administrator.

How Iowa law generally treats this:

  • If the account was sole-owner (no POD/joint title), the funds are estate property.
  • Sibling A had no authority to withdraw money after death (POA ends at death), so the withdrawals are unauthorized.
  • The proper remedy is for a personal representative (once appointed) to seek return of the funds from Sibling A, or for the other heirs to bring a civil claim. If Sibling A can show the payments preserved the house, a court may allow reimbursement approved through the probate process, but that is not automatic.

What you should do next (step-by-step)

  1. Gather documents: bank statements, account title info, mortgage statements, death certificate, any POA or estate planning documents.
  2. Contact the bank: ask why withdrawals were allowed, request a freeze on remaining funds, and request a copy of transaction records.
  3. Send a written demand to the sibling asking for an accounting and return of any unauthorized withdrawals. State you will seek court intervention if necessary.
  4. Consider filing for appointment as personal representative or petition the probate court to appoint an administrator. Courts can act quickly if estate property is at risk.
  5. If the sibling refuses to cooperate, discuss filing a civil claim for recovery or contacting law enforcement if the facts suggest criminal conduct.
  6. Keep careful records: preserve all communications, bank records, and receipts for any mortgage payments or expenses paid from the account.

Possible outcomes

  • The bank restores improperly paid funds and the appointed personal representative handles mortgage payments going forward.
  • The sibling returns funds voluntarily after demand or during probate accounting.
  • The court orders reimbursement to the estate (with possible credit for reasonable preservation expenses) or orders the sibling to repay.
  • Criminal charges if law enforcement finds evidence of theft or fraud.

Helpful Hints

  • Act quickly. Probate issues and bank record preservation are time-sensitive.
  • Do not try to forcibly seize funds or property yourself. Use court processes.
  • Check the account title carefully. If it was joint or POD, the sibling may be the lawful owner of the funds.
  • POAs end at death—don’t assume a prior agent still has authority.
  • Ask the bank for written confirmation of why they allowed access or payments; that can be evidence in court.
  • Keep emotional conversations separate from formal demands—document everything in writing.
  • Consider short-term temporary appointment if an estate asset (like a house) faces imminent loss (foreclosure or sale).
  • If you are unsure what to do next, consult a probate attorney experienced in Iowa estate administration. They can file emergency motions and advise on civil and criminal remedies.

Where to get forms and more information

Disclaimer: This article is for general informational purposes only and is not legal advice. Laws vary by situation and change over time. Consult a licensed Iowa attorney to get legal advice specific to your circumstances.

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.