Detailed answer
Short overview: If a deceased parent’s bank and credit card accounts are being used by someone else, the quickest safe path is to stop further unauthorized activity, establish legal authority to act for the estate (through the Surrogate’s office), and use that authority to recover funds, close or transfer accounts, and pursue civil or criminal remedies if needed. Below are practical steps under New Jersey procedures, what documents you will need, and when to consider law enforcement or a lawyer.
1. Immediate steps to stop continued use
- Obtain multiple certified copies of the death certificate from the county Surrogate where the death will be registered. Banks, credit card companies, and government agencies will ask for certified copies.
- Contact the banks and credit card companies right away. Tell them the account holder is deceased and that you suspect unauthorized use. Ask them to freeze or block transactions immediately. Keep the names, dates, and reference numbers of people you speak with.
- If you believe a specific person is fraudulently using the accounts, report the matter to local police and request a report number. A police report helps banks and prosecutors evaluate criminal theft or fraud.
2. Establish who has legal authority to manage the estate
In New Jersey, the county Surrogate’s office handles wills, probate, and appointment of a personal representative (executor or administrator). The person named as executor in a valid will or, if there is no will, a close relative can apply to be appointed as the estate’s personal representative. The Surrogate issues Letters Testamentary (when there’s a will) or Letters of Administration (when there’s no will) which are the documents banks rely on to allow access to accounts.
Find Surrogate court information and filing procedures on the New Jersey Courts Surrogate Division page: https://www.njcourts.gov/courts/surrogate.html.
3. Using the personal representative’s authority to regain control
- File the original will (if there is one) with the Surrogate in the county where the decedent lived. If there is no will, file a petition for administration. The Surrogate will explain required forms and fees.
- After appointment, obtain certified copies of the Letters. Provide certified death certificate and the Letters to financial institutions. Banks typically will accept these and either transfer funds to an estate account or close the account and issue a check to the estate.
- Open an estate checking account in the name of the estate (often required to deposit estate funds and pay bills). Use the Letters of Administration/Testamentary as bank authorization.
- Request formal account statements and transaction histories from the banks and card issuers going back at least 6–12 months to identify unauthorized withdrawals or charges.
4. Remedies if someone else misused accounts
- Administrative recovery from the financial institution: Present the death certificate and Letters and ask the bank to reverse unauthorized transfers or payments that the third party cannot lawfully make. Banks have internal policies for disputed or fraudulent transactions.
- Civil claims: The personal representative can bring an action against the person who misappropriated funds for conversion, unjust enrichment, or breach of fiduciary duty (if that person had a fiduciary role). A court can order return of funds plus interest and costs.
- Criminal charges: If evidence suggests theft, fraud, or identity misuse, the estate representative should provide documentation to the police and county prosecutor. Law enforcement can investigate and may pursue criminal charges.
5. Credit and identity protections
- Contact the three major credit bureaus to place a freeze or fraud alert on the decedent’s accounts to block new accounts or credit in their name: Equifax, Experian, and TransUnion (each offers online freeze services).
- Notify card issuers that the cardholder is deceased and dispute unauthorized charges. Provide the death certificate and, once you have them, the Letters of Administration/Testamentary.
- Consider filing an identity theft complaint with the Federal Trade Commission at https://www.identitytheft.gov/ and keep copies of all correspondence.
6. Practical evidence and documentation tips
- Keep a written log of all calls, including date, time, person spoken to, and summary of the conversation.
- Save emails and take screenshots of online account activity. Obtain certified bank statements showing suspect transactions.
- Do not destroy the decedent’s mail or financial records — they are important evidence for both probate administration and any legal claim.
7. When to get a lawyer
Consider hiring an attorney if:
- Someone is actively and repeatedly using accounts and banks refuse to reverse transactions.
- The estate is large or there are complex assets, taxes, or creditor disputes.
- You need to file a civil suit for recovery or coordinate with law enforcement on a fraud investigation.
To locate an attorney familiar with New Jersey probate and estate matters, consult the New Jersey Courts Surrogate page for local rules and the New Jersey State Bar Association for lawyer referral options: https://www.njcourts.gov/courts/surrogate.html and https://www.njsba.com/.
Important New Jersey procedural resources
- New Jersey Courts — Surrogate Division (probate, wills, Letters of Administration/Testamentary): https://www.njcourts.gov/courts/surrogate.html
- New Jersey Legislature — statutes (general reference for state law): https://www.njleg.state.nj.us/statutes
- New Jersey Office of the Attorney General — consumer protection and reporting suspected financial exploitation: https://www.njoag.gov/
Helpful Hints
- Get at least 10 certified copies of the death certificate when you file with the Surrogate — many institutions require originals.
- If someone had a power of attorney, remember that power of attorney ends at death and cannot be used to transact after the decedent’s death.
- Don’t rely on an informal statement from a family member that they are handling things — ask to see the Letters of Administration/Testamentary or proof of authority.
- Act quickly: banks may dissipate assets, and delays can reduce the chance of recovering funds.
- Keep emotions out of communications with the person misusing accounts; document everything and let the Surrogate, the bank’s fraud department, and law enforcement handle the dispute.
- When in doubt, consult a New Jersey probate or elder law attorney early — even a short consultation can clarify your rights and next steps.
Disclaimer: This article is educational only and does not constitute legal advice. It does not create an attorney-client relationship. For advice about your specific situation, contact a licensed New Jersey attorney.