What the estate can do when an heir withdraws funds after a parent dies — North Dakota

Detailed answer

When a person dies in North Dakota, the way money and liability are handled depends on how accounts were titled and who had legal authority over the accounts. If an heir withdraws money from the decedent’s bank account or charges on a credit card after the decedent’s death without legal authority, the personal representative (executor or administrator) of the estate can usually seek recovery through civil claims and, in some cases, criminal remedies.

Key categories that determine outcome

• Joint accounts with right of survivorship: If the decedent held the bank account jointly with someone as joint tenants with right of survivorship, the joint owner typically becomes the sole owner automatically at death. Funds that passed by survivorship are generally not part of probate and are not recoverable by the estate unless there is proof the joint account was a sham intended to defeat creditors or heirs.
• Payable-on-death (POD) or beneficiary designations: Accounts designated to pay a named beneficiary on death pass to that beneficiary outside probate. The estate usually cannot recover funds paid to a valid POD or beneficiary designation.
• Sole accounts (no survivorship or POD): If the decedent owned the account alone and an heir withdrew funds after the account holder’s death, those withdrawals are generally wrongful. The estate’s personal representative can demand the money back and, if necessary, sue for conversion, unjust enrichment, or similar causes of action.
• Credit cards: Credit card accounts are contracts between the card company and the cardholder. After death, the estate is generally responsible for valid debts of the decedent, but unauthorized charges by a third party are not valid estate debts. If an heir used a deceased parent’s card without authority after death, the estate can pursue recovery against that person and the card issuer can pursue fraud/theft remedies.

What the personal representative can do

The person appointed to administer the estate has several tools to recover money that rightfully belongs to the estate:

• Notify the bank and card issuer of the death and ask they freeze or close accounts. Banks often require a copy of the death certificate and appointment paperwork.
• Demand repayment in writing from the heir who withdrew funds. A formal demand letter from the personal representative or their lawyer can prompt voluntary repayment.
• File a civil lawsuit against the person who withdrew funds for conversion, unjust enrichment, account stated, or breach of fiduciary duty (if the person had fiduciary authority). North Dakota courts can order restitution and damages.
• Seek a court accounting. If the withdrawing heir is also a fiduciary (for example, a surviving co-trustee or someone acting as agent), the personal representative can ask the probate court for an accounting and surcharge for misappropriated funds.
• Notify law enforcement. If the withdrawals were intentionally fraudulent or criminal, state prosecutors may pursue theft or fraud charges. Criminal restitution to the estate is sometimes part of a criminal sentence.

Relevant North Dakota law (where to look)

Probate rules and the duties of a personal representative in North Dakota are found in the North Dakota Century Code, chapter for decedent’s estates: N.D.C.C. ch. 30.1 (Decedent’s Estates). Criminal theft and related offenses appear in the North Dakota criminal code: N.D.C.C. Title 12.1 (Criminal Code). These statutes and related case law govern how property passes at death, the duties of personal representatives, and potential criminal liability for wrongful taking.

Practical examples (hypothetical)

Example A: Parent dies owning a sole checking account. An adult child — not named on the account and not a POD beneficiary — withdraws $10,000 two days after the death. The personal representative learns of the withdrawal, freezes the account, and sues the child for conversion. A court orders repayment plus interest and court costs.

Example B: Parent had a joint account with a child labeled “joint with right of survivorship.” After death, the child withdraws money. Because the account passed by survivorship, the funds are likely the child’s and not recoverable by the estate unless the estate proves the joint title was intended to hide assets or defraud creditors.

When criminal charges may apply

If the heir knowingly took funds they knew were not theirs, prosecutors can sometimes charge theft, fraud, or similar offenses. Whether criminal prosecution happens depends on evidence, intent, amount taken, and prosecutorial discretion. The estate can cooperate with law enforcement and still pursue civil recovery concurrently.

Helpful Hints

• Act quickly: notify the bank, card issuer, and the probate court as soon as you learn of unauthorized withdrawals.
• Preserve evidence: keep bank statements, account transaction details, text messages or emails, and any documentation showing the date of death.
• Check account titles and beneficiary designations before accusing anyone. Joint accounts and POD designations change ownership automatically at death.
• Appoint a personal representative early. That person has legal authority to act on behalf of the estate and can demand returns and bring lawsuits.
• Request an accounting from anyone who handled the decedent’s finances after death—especially if they had access to bank or credit accounts.
• Understand estate liability: the estate may be liable for valid debts of the decedent. Distinguish between legitimate estate obligations and unauthorized withdrawals by third parties.
• Consider both civil and criminal options. Civil suits can recover money and fees; criminal prosecution can result in restitution and deterrence but is out of the estate’s direct control.
• Talk to a probate attorney in North Dakota early — statutes, deadlines, and local court practices matter.

How to find help

Look for an attorney with experience in probate and estate litigation. A lawyer can advise on notice and timing requirements, prepare demand letters, file suit, and coordinate with law enforcement if theft is suspected.

Important disclaimer: This article explains general principles of North Dakota law and is for educational purposes only. It does not constitute legal advice and does not create an attorney-client relationship. For specific legal advice about a particular situation, consult a licensed North Dakota attorney.