What to know about someone withdrawing funds from a deceased parent’s accounts in Texas

Disclaimer: This is general information only and not legal advice. For specific guidance about a particular situation, consult a licensed Texas attorney.

Detailed answer — how Texas law treats withdrawals after a person dies

When a parent dies, their bank accounts, credit card accounts, and other financial assets usually become part of the decedent’s estate unless the account title or beneficiary designation says otherwise. Under Texas law, who is entitled to that money and whether the estate can recover money someone removed after death depends on three main factors:

1. How the account was titled before death. Many accounts avoid probate because of a named beneficiary or joint owner:
• Payable-on-death (POD) or “transfer-on-death” designations and beneficiary designations on retirement accounts typically pass directly to the named beneficiary outside probate.
• Joint accounts with rights of survivorship usually give the surviving joint owner immediate ownership of the funds. Texas will generally recognize the surviving owner’s right to the funds if the joint title was proper.
2. Whether the withdrawal was authorized. If the person who withdrew money was not an owner, beneficiary, or an authorized signer acting under legal authority, the withdrawal likely took estate property without authority. Unauthorized taking can give rise to civil claims (for example, conversion or unjust enrichment) and possibly criminal charges (theft or credit-card/debit-card abuse).
3. Whether the estate has opened probate or a personal representative is acting. The personal representative (executor or administrator) has the duty to collect estate assets, preserve them, and distribute them according to the will or Texas law. If someone takes funds before the estate is opened, the personal representative can usually seek recovery in civil court once appointed.

Common legal claims and remedies

Here are the typical legal paths an estate can take in Texas:

• Civil recovery by the personal representative: The appointed personal representative can sue to recover estate property taken without authority. Typical civil claims include conversion (taking or using property that belongs to another), breach of fiduciary duty (if the taker had an obligation to the estate, such as an executor), unjust enrichment, and accounting. The estate can also ask the court to impose a constructive trust so the funds are treated as estate property.
• Criminal complaints: Where the withdrawal was intentionally unlawful (theft, credit/debit-card abuse), you can report the conduct to law enforcement. Texas defines theft in the Penal Code; see Tex. Penal Code §31.03. Credit- and debit-card abuse are separately addressed in the Penal Code; see Tex. Penal Code §32.31. Law enforcement and prosecutors decide whether to bring criminal charges and whether to seek restitution.
• Accounting, surcharge, and removal of a personal representative: If an executor or administrator improperly removed funds, other heirs or beneficiaries can ask the probate court for an accounting, seek surcharge (a court-ordered reimbursement), or ask the court to remove the personal representative and appoint a successor.

Practical examples

Example 1 — Sole account in decedent’s name: If Mom had a bank account in only her name and an heir withdraws cash after she dies, that cash is estate property. The personal representative can file a civil suit for conversion and recover the money plus costs. The heir may also face criminal charges.

Example 2 — Joint account or POD: If the account was joint with rights of survivorship or had a POD beneficiary, the joint owner or POD beneficiary generally keeps the funds. The estate cannot recover those funds unless the survivor obtained the account by fraud.

Example 3 — Executor withdraws funds improperly: If the person who withdrew money is the appointed personal representative but used the money for personal purposes outside their authority, beneficiaries can petition the probate court for an accounting, surcharge, removal, and recovery.

Timing and deadlines

Act quickly. Evidence (bank records, surveillance, receipts) is easier to obtain early. Also consider statutes of limitations for civil claims. For example, many common law conversion claims must be brought within two years under Texas law; see Tex. Civ. Prac. & Rem. Code § 16.003. For criminal matters, reporting promptly helps the investigation.

Relevant Texas statutes and resources

• Theft (Texas Penal Code): see Tex. Penal Code § 31.03 — https://statutes.capitol.texas.gov/Docs/PE/htm/PE.31.htm#31.03
• Credit- or debit-card abuse (Texas Penal Code): see Tex. Penal Code § 32.31 — https://statutes.capitol.texas.gov/Docs/PE/htm/PE.32.htm#32.31
• General probate and how estates are handled in Texas (court resource) — Texas Courts: Probate information — https://www.txcourts.gov/programs-services/probate/
• Statute of limitations for many torts (including conversion) — Tex. Civ. Prac. & Rem. Code § 16.003 — https://statutes.capitol.texas.gov/Docs/CP/htm/CP.16.htm#16.003

What to do right now — immediate steps

1. Document everything. Make a written timeline of what happened and collect bank statements, transaction records, credit card statements, emails, texts, and any receipts.
2. Notify the bank. Tell the bank that the account owner died and that there may have been unauthorized withdrawals. Ask whether the bank froze the account or can provide transaction records.
3. If probate is not opened, consider opening it promptly. A personal representative can be appointed by the probate court and will have standing to sue to recover estate property.
4. Consider filing a police report if funds were taken without permission.
5. Talk to a Texas probate or estate litigation attorney. They can explain whether to pursue civil recovery, how to handle joint accounts/POD designations, and whether criminal referral is appropriate.

Helpful Hints

• Do not assume that a family member who says they were “helping” had authority. Ask for documentation showing legal authority (e.g., letters testamentary, power of attorney). A power of attorney ends at death.
• If an account contains a POD beneficiary or joint owner, ask the bank for account documents and obtain written confirmation of the account title history.
• If the person who withdrew funds is the named executor, beneficiaries can still demand an accounting and ask the court to remove or surcharge the executor if wrongdoing or mismanagement occurred.
• Preserve digital evidence: download online banking records and screenshots. Banks can purge older online logs, so get records quickly.
• Small estates: Texas has procedures that sometimes allow distribution without full probate for small estates. An attorney can tell you whether that path applies and whether it affects recovery options.

Recovering money taken after a death is often possible, but the route depends on account titles, whether someone had legal authority, whether probate is open, and whether fraud occurred. Because these matters combine civil and sometimes criminal law, consult a Texas probate or estate-litigation attorney promptly to preserve evidence and protect the estate.

Again: This is educational information, not legal advice. For advice about a particular case, contact a licensed Texas attorney.