Recovering Funds Withdrawn from a Deceased Parent’s Accounts in Nebraska — FAQ

This FAQ explains, in plain language, what can happen if someone withdraws money from a deceased parent’s bank account or charges to their credit cards after the parent dies, and how an estate in Nebraska can respond. This is an educational overview and not legal advice. Consult a Nebraska attorney to discuss your specific facts.

Detailed answer

1. Who controls the deceased person’s money after death?

Short answer: a personal representative (sometimes called an executor or administrator) manages the decedent’s probate estate. The court issues letters appointing that person. The personal representative must gather the decedent’s assets, pay valid debts and taxes, and distribute remaining assets to heirs or beneficiaries under the will or Nebraska intestacy rules. You can read the Nebraska probate statutes (Chapter 30) for the rules that govern this process: Neb. Rev. Stat. Chapter 30 (Probate).

2. Do some accounts avoid probate and pass immediately to someone else?

Yes. Certain accounts pass outside of probate and are not controlled by the personal representative. Common examples:

• Payable-on-death (POD) or transfer-on-death (TOD) designations — funds go directly to the named beneficiary.
• Accounts titled jointly with rights of survivorship — the surviving joint owner usually owns the account immediately.
• Assets that have named beneficiaries (retirement accounts, life insurance).

If an account legitimately passes outside probate, the estate generally has no claim to those funds. If an heir nevertheless takes funds from an account that should have been estate property, that withdrawal may be wrongful.

3. If an heir withdraws money after death, is that wrongful?

It depends on the facts. The withdrawal is likely wrongful when:

• The account belongs to the estate (no valid POD/joint designation) and the person had no authority from the personal representative or court.
• The person was acting as the personal representative but used funds for improper purposes or failed to account for them.

If the person had authority (for example, a named beneficiary taking a POD distribution, or an authorized personal representative making lawful estate payments), the withdrawal may be lawful. The key questions are: whose property was the money, and did the person have legal authority to take it?

4. What legal remedies can the estate use to recover withdrawn funds?

The personal representative (or, if there is no appointed representative yet, an interested beneficiary or heir through the probate court) has several common remedies:

• Demand and accounting: Ask the person who withdrew funds to return them and provide bank records showing how the money was used.
• Civil claim for conversion or unjust enrichment: The estate can sue the person who took the money to recover the value of the funds wrongfully taken.
• Fiduciary remedies: If the person who took funds is or was the personal representative, the court can surcharge the fiduciary (order repayment), remove the fiduciary, and require an accounting under Nebraska probate rules. See Nebraska probate statutes for fiduciary duties: Neb. Rev. Stat. Chapter 30.
• Criminal referral: Taking money that you know is not yours can also be theft under Nebraska criminal law. The estate can report the matter to police and prosecutors for potential criminal charges. See Nebraska criminal statutes: Neb. Rev. Stat. Chapter 28 (Crimes).
• Freeze or garnishment: With a court order, the estate may be able to freeze or seize assets to secure the claim while the case proceeds.

Where funds were taken from credit cards in the decedent’s name, the estate may still be able to dispute charges, recover refunds, or seek reimbursement from the person who used the card if use was unauthorized.

5. What evidence does the estate need to recover funds?

Good evidence speeds recovery. Useful items include:

• Bank and credit-card statements showing account activity and withdrawals.
• Death certificate and proof of who is the personal representative.
• Records or communications showing whether the decedent had designated beneficiaries or joint owners.
• Any written or electronic authorizations, checks, ATM slips, or transfer receipts.

6. Timing — how quickly must the estate act?

Act promptly. Banks may refuse to honor claims after they rely on apparent ownership. Evidence is easier to get when accounts are recent. Also, legal claims are subject to statutes of limitations. The exact deadlines depend on the claim (conversion, unjust enrichment, breach of fiduciary duty, or a specific probate procedure). Because these limits vary, consult an attorney soon to preserve claims.

7. Practical result depending on common scenarios

• If the account was an individual account belonging to the decedent and an heir withdrew funds without authorization: the estate can demand repayment and sue for conversion or unjust enrichment; the court can order repayment, interest, and possibly removal of a fiduciary if one misused funds.
• If the account was joint with right of survivorship: the surviving joint owner will typically keep the funds; the estate generally cannot recover them unless there is evidence of fraud or that the joint account was a sham to defeat creditors or heirs.
• If funds were withdrawn by someone acting as the personal representative but used for their own benefit: the court can require an accounting and order repayment, and the person may face civil liability or criminal charges.

Helpful hints

• If you learn of withdrawals, preserve all statements and documents immediately. Do not delete electronic messages or destroy paper records.
• Contact the bank promptly. Provide a death certificate and ask the bank about account freezes and any pending transactions.
• Check whether the account had a POD beneficiary or was jointly titled. These designations usually override probate claims.
• Identify who is (or should be) the personal representative. If no one has been appointed, an interested person can file a petition for appointment in the county probate court to protect estate assets.
• Send a written demand for return of funds before filing suit — often recovery and negotiation start here.
• Talk to a Nebraska attorney experienced with probate, fiduciary litigation, or creditor/estate disputes. They can evaluate statute-of-limitations issues and help pursue a court order if needed.
• If you suspect criminal conduct, consider contacting local law enforcement or the county attorney, but coordinate with counsel first.
• Be mindful of family tensions — mediation or settlement can resolve many disputes more quickly and cheaply than litigation.

Example (hypothetical)

Suppose a Nebraska resident dies owning an individual checking account with $12,000. An adult child withdraws $5,000 the day after the death without the authority of the personal representative. The appointed personal representative can demand the return of $5,000, secure records showing the withdrawal, and sue for conversion if the child refuses. If the child was serving as personal representative and spent the money for personal use, the court could remove the person, require repayment with interest, and order an accounting under Nebraska probate rules.

Next steps

If this situation applies to you: collect account statements and the death certificate, avoid spending disputed funds, and consult a Nebraska probate attorney quickly. The attorney can advise whether to open probate (if not already open), how to preserve evidence, and what remedies are available in your county and under Nebraska law.

Disclaimer: This article explains general legal principles under Nebraska law for educational purposes only. It is not legal advice and does not create an attorney-client relationship. For advice about your specific situation, consult a licensed Nebraska attorney.