Detailed Answer
When a person dies, their money and credit-card liabilities become part of their estate unless the accounts are owned in a way that passes them directly to another person (for example, joint accounts with right of survivorship or accounts with a named beneficiary/POD). Under Rhode Island law, the process for collecting assets, paying debts, and distributing what remains is handled through probate administration. See Rhode Island General Laws, Title 33 (Wills, Trusts, and Estates): https://webserver.rilin.state.ri.us/Statutes/TITLE33/.
If an heir (or anyone) withdraws money from a deceased parent’s bank account or uses the parent’s credit cards after the death and did so without legal authority, those withdrawals are generally treated as wrongful. The estate (through the personal representative/executor or any interested person) can typically seek to recover those funds. Potential legal remedies include:
- Requiring return of funds to the estate. The personal representative can demand the money be returned and, if necessary, petition the probate court to order recovery as part of estate administration.
- Civil claims. The estate may bring civil claims such as conversion (wrongful exercise of control over another’s property), unjust enrichment, or money had and received, to recover misappropriated funds.
- Surcharge or removal of a fiduciary. If the person who took money was serving as the estate’s personal representative or had fiduciary authority, the probate court may surcharge (hold them personally liable for) improperly taken amounts or remove them for breach of fiduciary duty.
- Criminal referral. If the taking rises to theft, embezzlement, or larceny under Rhode Island criminal law, the matter can be referred to law enforcement and the prosecutor. See Rhode Island General Laws, Title 11 (Crimes and Criminal Procedure): https://webserver.rilin.state.ri.us/Statutes/TITLE11/.
Key factual questions that affect the result:
- How were the accounts titled? (Sole name, joint with right of survivorship, trust, payable-on-death beneficiary.)
- Who had legal authority after death? Only the appointed personal representative (executor/administrator) can lawfully administer the decedent’s assets.
- Was the withdrawal made before or after the date of death? Withdrawals made after death are almost always improper unless the person had express legal authority.
- Was the person who withdrew the money the named personal representative or an authorized agent? If so, they must account for and properly administer funds; misuse can create liability.
Typical outcomes by situation:
- If the account was sole-name and money was withdrawn after death by an heir with no authority: the estate can demand return and sue. The bank should freeze accounts once notified of death; if the bank failed to freeze and allowed withdrawals, the bank’s policies and timing may matter, but the person who took funds remains potentially liable.
- If the account was joint with right of survivorship: the surviving joint owner generally owns the funds automatically. An heir who was not a joint owner usually has no claim to those transferred funds via survivorship.
- If the account had a POD or beneficiary designation: the named beneficiary typically receives the funds outside probate and the estate cannot recover them (absent fraud in the beneficiary designation).
- If the person was acting as the personal representative but used estate funds for personal purposes: the court can order repayment, surcharge the fiduciary, and possibly remove them. The estate may also pursue civil claims and criminal charges.
Practical steps for the estate or heirs who discover improper withdrawals:
- Preserve evidence: bank statements, transaction records, communications, and death certificate.
- Notify the bank in writing and request a freeze on the decedent’s accounts if probate has not yet closed.
- Contact the appointed personal representative (if not you) and demand an accounting. If you are the personal representative, file an accounting with probate and include the missing transactions.
- If necessary, file a claim in probate court asking the court to order return of funds, surcharge a fiduciary, or remove a fiduciary for breach of duty.
- Consider a civil action for conversion or unjust enrichment and/or report the matter to law enforcement if theft is suspected.
Timing and statutes of limitation matter. Rhode Island law sets time limits for different civil claims and for probate proceedings. Consult a Rhode Island attorney promptly to preserve claims and follow probate timelines. For general probate process information and forms, see the Rhode Island Judiciary/probate resources: https://www.courts.ri.gov/.
Bottom line: Yes — in many common situations the estate can recover funds that an heir withdrew without authority after a parent’s death. The exact path depends on account title, whether the taker had legal authority, and the timing. Remedies include probate petitions, civil suits (conversion/unjust enrichment), fiduciary surcharge, and possible criminal charges.
Disclaimer: This article is for general information only and is not legal advice. It does not create an attorney-client relationship. For advice about a specific situation, consult a licensed Rhode Island attorney.
Helpful Hints
- Immediately obtain and keep copies of bank and credit-card statements showing the withdrawals.
- Secure the decedent’s mail and financial records to prevent further unauthorized activity.
- Identify account ownership: look for joint accounts, POD designations, or trust accounts—these change who is entitled to funds.
- If you are named personal representative, open a separate estate bank account to handle estate funds and avoid commingling.
- Notify the bank and credit-card companies in writing of the decedent’s death; provide a certified death certificate and the personal representative’s letters of administration when appointed.
- Ask the probate court for an accounting if you suspect misuse by someone appointed by the court.
- Act quickly—delays can risk losing rights to recover funds and may affect statutes of limitation.
- Keep communications factual and documented; avoid threats. If recovery is contested, let a probate attorney handle negotiations or court filings.