Detailed Answer

1. What happens to accounts and credit cards when someone dies?

When a person dies, how an account or card is handled depends on ownership and beneficiary designations:

• Joint accounts with right of survivorship usually pass to the surviving joint owner immediately and are not part of probate.
• Accounts designated as payable-on-death (POD) or transfer-on-death (TOD) pass to the named beneficiary outside probate.
• If there is no survivorship or beneficiary designation, the funds are part of the deceased person’s probate estate and are controlled by the personal representative (executor/administrator) once appointed by the probate court.
• Credit card accounts are contracts between the cardholder and issuer. Outstanding balances generally become claims against the estate; if someone was a joint account holder or co-signer they may be personally liable for the debt.

2. If an heir withdraws money after death, is that lawful?

It depends:

• If the heir was a surviving joint owner or named beneficiary, the withdrawal may be lawful.
• If the heir was merely an heir (not a joint owner or beneficiary) and withdrew funds after the decedent died, the withdrawal is likely improper. The funds generally belong to the estate and are to be handled by the personal representative during probate.
• If the heir was the personal representative but withdrew funds for personal use without court approval or without accounting, that can be a breach of fiduciary duty.

3. What remedies are available to recover the money in Maryland?

Possible remedies include:

1. Ask the bank to freeze or reverse transactions. Provide the death certificate and notify the bank. Banks often have policies to freeze accounts upon learning of a death and may reverse some wrongful transactions if reported quickly.
2. Probate accounting and surcharge. When a personal representative is appointed, beneficiaries or creditors can ask the probate court for an accounting of estate assets. The court can surcharge (hold liable) a personal representative or fiduciary who misapplied estate funds.
3. Civil claims by the estate. The personal representative can bring civil claims such as conversion (wrongful taking of money/property), unjust enrichment, or breach of fiduciary duty to recover funds taken by an heir.
4. Criminal referral. If the withdrawal appears intentional and fraudulent, the estate or family can contact the county/state prosecutor to report possible theft or embezzlement. The prosecutor decides whether to file criminal charges.
5. Recovering credit-card overcharges. If someone charged a credit card account after death without authority, the card issuer can refuse to pay charges and may seek repayment from the person who charged. The estate may contest charges as unauthorized if they are improperly made after death.

4. Who must bring these claims?

Only the personal representative (executor or administrator) has standing to manage estate assets and bring claims on behalf of the estate. If no personal representative has been appointed, an interested person (an heir or creditor) should petition the probate court to be appointed administrator so the estate can be represented and claims pursued.

5. What evidence and steps are important?

Collect and preserve evidence immediately:

• Death certificate.
• Bank and credit-card statements showing the withdrawals/charges and dates.
• Any communications with the bank or the person who withdrew funds.
• Documentation of account ownership (signature cards, account agreements, beneficiary designations).

6. Timing and statutes of limitation

There are time limits for civil claims. For example, many tort claims (like conversion) in Maryland generally must be brought within the state’s statute of limitations for similar civil actions. If a probate administration is opened, the probate process imposes other timing rules (creditor claims deadlines, accounting deadlines). Because time limits vary by claim and circumstance, start the process promptly and consult a probate attorney to preserve rights.

7. Special circumstances that can change the result

• If the heir was a joint account holder, funds may pass outside probate and not be recoverable as estate property.
• If the heir reasonably believed they had authority (for example, acting as an appointed agent with clear authority), that may affect civil liability though not necessarily the estate’s right to recovery.
• If the estate lacks assets after wrongful withdrawals, recovery may be practically difficult even if the estate wins in court.

8. Where to find Maryland probate law and official guidance

Useful official resources:

• Maryland Judiciary — Wills, Estates, and Trusts information (probate basics and forms): https://www.mdcourts.gov/legalhelp/estate
• Maryland General Assembly — Estates & Trusts Article (statutes governing wills, administration, and fiduciary duties): https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gest
• If you suspect criminal conduct, contact your county State’s Attorney or local law enforcement. Maryland Criminal Law is available at the General Assembly site: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=cr

9. Practical outcomes you can expect in Maryland

• If the bank reverses transactions (possible if reported quickly), the estate may recover funds without litigation.
• If the personal representative sues and proves wrongful taking, the court can order repayment, damages, and may remove and surcharge a fiduciary who misused funds.
• If criminal charges are filed and proven, the wrongdoer could be fined, ordered to pay restitution, or imprisoned. Criminal restitution may help the estate recover some funds but is separate from civil recovery.

10. Next practical steps

1. Preserve evidence (statements, communications, death certificate).
2. Contact the bank and formally notify them of the death; ask whether they will freeze or reverse transactions.
3. If no personal representative is appointed, petition the probate court to open administration and appoint an administrator.
4. Consult a Maryland probate attorney quickly to evaluate civil claims, to help with probate procedures, and to advise about criminal referrals if appropriate.

Note on credit-card charges: Unauthorized charges made after death typically are not legitimate estate expenses. The credit card company and the estate each have routes for disputing or resolving such charges depending on contract terms and timing.

Helpful Hints

• Act fast: banks are more likely to reverse recent improper withdrawals. Preserve bank statements immediately.
• Get an official death certificate — banks and issuers require it to freeze or close accounts.
• Do not confront the person who withdrew funds without counsel if you suspect fraud; preserve communications and avoid destroying evidence.
• If you are named personal representative, keep records and receipts for any distributions or payments you make — the court will expect an accounting.
• If you think a withdrawal was innocent (family member paying funeral expenses, for example), document the purpose and get written acknowledgements to avoid future disputes.
• Speak with a Maryland probate attorney to understand whether funds were estate property and how to proceed in probate or civil court.
• Keep in mind that if someone was a joint owner or named beneficiary, the estate may not be able to recover those funds.