Can the estate recover money an heir withdrew from a deceased parent’s bank account or credit cards? — Nevada FAQ

Short answer: Yes — in many cases the estate can recover funds that an heir withdrew after a parent died. Whether recovery is possible depends on how the accounts were titled, whether the withdrawer had legal authority (for example, as a named joint owner or appointed personal representative), and whether the transfer was done in bad faith. You can pursue recovery through the probate process, a civil lawsuit for conversion/unjust enrichment, and in some situations criminal charges under Nevada law.

How account ownership and authority usually work after death

When someone dies, their assets usually pass to the estate unless they were arranged to pass directly to someone else. Common patterns include:

• Payable-on-death (POD) or beneficiary designations: Funds pass directly to the named beneficiary and generally avoid probate. An heir cannot take money unless they are the designated beneficiary.
• Joint accounts with right of survivorship: The surviving joint owner typically becomes sole owner automatically.
• Individual accounts in the decedent’s name only: Funds belong to the decedent’s estate. No heir has a legal right to withdraw money simply because they are an heir.
• Authorized signers or agents (powers of attorney): A power of attorney ends at death. An agent cannot lawfully use that authority after the principal dies unless the agent also has another basis for authority (for example, is a named joint owner or later becomes the personal representative).

What happens if an heir withdraws money without authority?

If an heir withdraws money from an account owned solely by the decedent after the decedent’s death and without legal authority, several remedies may be available:

• Demand and return: The personal representative (executor or administrator) can demand repayment. Banks often cooperate once presented with a death certificate and letters testamentary/administration.
• Probate accounting and estate claims: During probate, the personal representative must identify estate assets and liabilities. Unauthorized withdrawals are usually treated as assets missing from the estate and the representative can pursue recovery on behalf of all heirs and creditors.
• Civil claims: The estate (through the personal representative) can sue the person who withdrew funds for conversion, breach of fiduciary duty (if the withdrawer had some fiduciary role), or unjust enrichment.
• Criminal referral: If the withdrawal was knowingly wrongful, a criminal theft or embezzlement charge may be possible under Nevada law. For general Nevada criminal statutes, see the Nevada Revised Statutes on theft: NRS Chapter 205 (Theft and Related Offenses).

Who acts to recover the money?

Only the decedent’s personal representative (executor or administrator) acts in court to recover estate property. If no probate has started, an interested person (an heir or creditor) can open probate or request appointment of a personal representative. Nevada’s probate procedures explain how to open an estate and obtain authority to act: Nevada Courts — Probate Self-Help. You can also review Nevada’s statutes related to estate administration on the Nevada legislative site: Nevada Revised Statutes (NRS).

Common legal theories used to recover wrongful withdrawals

• Conversion: Taking and using estate property without permission. The estate can seek the value of the converted funds plus possible damages.
• Unjust enrichment: If an heir benefited at the expense of the estate, the estate may recover the benefit.
• Breach of fiduciary duty: If the withdrawer had a legal duty to the decedent (for example, as an appointed fiduciary) and breached it, the estate can seek remedy.

Practical steps to take if you suspect an unlawful withdrawal

1. Preserve records — collect bank statements, canceled checks, online transaction records, emails, and texts showing the withdrawals.
2. Do not destroy evidence — don’t let the account-holder or withdrawer erase or hide records.
3. Contact the bank — inform the bank that the account owner died. Banks often freeze individual accounts pending production of a death certificate and letters of appointment.
4. Open probate or contact the personal representative — if probate is not yet open, an heir or creditor can petition the court to open it so a personal representative can act.
5. Send a written demand — once a personal representative is in place, send a demand letter asking for return of funds before filing suit.
6. Consider criminal referral — if the withdrawal appears willful and fraudulent, consider reporting to local law enforcement for possible investigation under Nevada theft statutes (see NRS Chapter 205).

Timeline and limitations

Statutes of limitation govern how long you have to bring civil claims. The time limit varies by cause of action (conversion, unjust enrichment, etc.). Because time limits can be technical, consult a Nevada probate attorney promptly to avoid losing rights.

Hypothetical examples

Example 1 — Joint account: Mom had a joint account with Son with right of survivorship. Mom died and Son withdrew all funds. Because Son was joint owner, the funds likely belonged to Son immediately unless account records show otherwise.

Example 2 — Sole account, no authorization: Mom had an account in her name only, no beneficiary. After her death, Daughter withdrew money before probate opened. Daughter had no authority. The personal representative can demand repayment, recover funds in probate or sue Daughter for conversion.

When the bank may refuse to return funds

Banks usually follow account agreements and the law when they release funds. If an account had a valid beneficiary designation or joint owner, the bank may properly pay that person. If the bank paid the wrong person negligently, the estate may have a claim against the bank as well as against the withdrawer.

Finding help

If you face this situation in Nevada, consider speaking with a probate or estate litigation attorney. An attorney can:

• Review account records and beneficiary designations;
• Start probate or petition the court for authority;
• File civil claims and represent the estate in court;
• Advise whether criminal referral is appropriate.

For general Nevada probate procedures and forms, see Nevada Courts: https://nvcourts.gov/self-help/probate/. For Nevada statutes, see Nevada Revised Statutes: https://www.leg.state.nv.us/NRS/.

Helpful Hints

• Act quickly: freeze or secure accounts and start probate as soon as possible.
• Get a death certificate early — banks require it to stop payments and freeze accounts.
• Check for POD or beneficiary designations before assuming funds are estate assets.
• Gather transaction records showing dates, amounts, and recipients of withdrawals.
• If you are named personal representative, obtain your letters of administration/testamentary from the court to gain authority to act.
• Send a written demand for return before filing suit — courts often expect a demand first.
• Consider both civil and criminal routes if the withdrawal appears intentional and fraudulent.
• Consult a Nevada probate attorney to preserve remedies and meet procedural deadlines.

Disclaimer: This article explains general Nevada legal concepts and is for educational purposes only. It is not legal advice and does not create an attorney-client relationship. For guidance tailored to your situation, consult a licensed Nevada attorney.