FAQ — Recovering funds taken from a deceased person’s accounts under Kentucky law

Short answer: Yes — in many situations the estate can try to recover money an heir withdrew after a parent died. Recovery depends on how the accounts were titled, whether the heir had legal authority, and when the transfers happened. The estate’s personal representative (executor or administrator) is the person who typically brings civil claims and can also ask prosecutors to consider criminal charges.

Detailed answer

1. Who controls the decedent’s money after death?

When someone dies, ownership of most of their assets does not automatically stay with the people who withdraw funds. A valid will normally names a personal representative (executor). If there is no will, the court appoints an administrator. That representative has the legal duty to gather assets, pay debts, and distribute what remains to heirs. Under Kentucky probate law, the representative brings claims on behalf of the estate and enforces estate rights (see Kentucky probate resources: Kentucky Revised Statutes and general probate information at the Kentucky Court of Justice — Probate).

2. Common account scenarios and what they mean

• Account in decedent’s name only: Funds belong to the estate. If an heir withdraws money after death, the withdrawal is typically unauthorized. The estate can sue for conversion, unjust enrichment, or demand an accounting and return of funds.
• Payable-on-death (POD) or Transfer-on-death (TOD) designation: Money with a POD or TOD designation passes directly to the named beneficiary and bypasses probate. If an heir is not the named beneficiary but withdraws money, the estate can seek recovery because the beneficiary rule controls.
• Joint account with right of survivorship: If the account was jointly owned with the right of survivorship, the surviving joint owner typically becomes the full owner of the account automatically. In that case, withdrawals by that joint owner are usually lawful. However, if the joint account was created as a convenience or to help manage money and not to give ownership, disputes can arise and courts may examine intent.
• Power of attorney or authorized agent: A power of attorney ends at death. An agent cannot legally use a former agent’s authority after the principal dies. Any withdrawals after death by someone relying on a revoked power can be challenged.

3. Bank behavior and practical issues

Banks sometimes let someone withdraw funds because they believe a joint owner or an authorized signer has a right to the money. That doesn’t make an unauthorized withdrawal lawful. The estate can demand the bank return funds taken without proper authority. Banks also have **know your customer** rules and policies about releasing funds on death notices; they may freeze accounts temporarily upon notice of death.

4. Credit card charges after death

Credit card accounts are separate from bank deposit accounts. Creditors can only collect from the estate for valid charges made before death. Unauthorized charges made after death by an heir or another person are typically not enforceable against the estate and may be unlawful for the person who made them. If a family member used the card after the cardholder died, the issuer may seek repayment for charges the issuer believes were authorized; the estate representative can dispute those charges and, if needed, sue to recover unauthorized payments the heir received.

5. Civil claims the estate can bring

• Conversion: The estate can sue to recover wrongfully taken property or money.
• Unjust enrichment / money had and received: If the heir benefited at the expense of the estate, the estate can seek restitution.
• Accounting and surcharge: Where the person taking funds had fiduciary duties (for example, was acting as a guardian, trustee, or personal representative), the court can require a formal accounting and may surcharge (penalize) the fiduciary for losses.

6. Criminal possibilities

Taking money that doesn’t belong to you can be a crime. Kentucky criminal statutes prohibit theft and related offenses. If the facts suggest intentional theft or embezzlement, the estate representative can report the conduct to law enforcement or the Commonwealth’s Attorney. Criminal prosecution is separate from the estate’s civil claims and may lead to restitution ordered by the criminal court.

7. Typical process to recover funds in Kentucky

1. Personal representative identifies the improper withdrawals and gathers bank and credit-card records.
2. Representative sends a written demand to the person who took funds asking for return and provides documentation.
3. If demand fails, the representative files a civil lawsuit in the appropriate Kentucky court (probate court or circuit court) for conversion, unjust enrichment, or an accounting.
4. As needed, the representative may ask the court for temporary relief (for example, to freeze remaining funds) while the case proceeds.
5. The representative can also report the matter to law enforcement for possible criminal investigation.

8. Evidence and records to preserve

Keep copies of bank statements, copies of the death certificate, all communications with the person who withdrew money, any account signature cards, account-title documents (showing POD or joint ownership), powers of attorney, and records of any loans or gifts. The estate representative should gather these quickly to support a claim.

9. Timing and limitations

There are time limits to sue (statute of limitations). These limits vary by the type of claim (conversion, unjust enrichment, breach of fiduciary duty). Acting promptly helps preserve rights, evidence, and remedies. If you believe funds were taken, contact the court-appointed representative or petition the probate court to remove a representative who fails to act.

Helpful hints

• Do not destroy records. Preserve account statements and correspondence.
• If you are the surviving family member who found out about withdrawals, notify the personal representative or petition the court to appoint one if none exists.
• Check account titles: look for words like “POD,” “TOD,” or “joint with right of survivorship.” These words often determine whether money bypasses probate.
• Ask the bank for a written explanation of why funds were released. That paper trail helps a civil claim.
• Consider both civil and criminal remedies. The estate can sue to get money back; prosecutors can investigate theft or fraud.
• If you are an heir who received funds and you are unsure whether the withdrawal was lawful, get legal advice quickly. Returning funds voluntarily may avoid litigation or criminal exposure.
• Use the Kentucky Court of Justice probate resources to understand local filing procedures: courts.ky.gov — Probate.

When to get a lawyer

Hire a lawyer if the amount at issue is significant, if the heir refuses to return funds, if the account title is disputed, or if the case involves complex trust or fiduciary issues. A lawyer experienced in Kentucky probate and estate litigation can help the personal representative bring the right claims and advise about criminal referrals.