What to Do When an Heir Withdraws Money from a Deceased Parent’s Accounts — Wyoming

Disclaimer: This is general information, not legal advice. Laws change and each situation is different. Consult a licensed Wyoming attorney for advice about your specific case.

Detailed answer — how recovery works under Wyoming law

When someone withdraws money from a deceased person’s bank account or uses their credit card after death without proper authority, the estate — and the person appointed to administer it — can often try to recover those funds. The legal path depends on who made the withdrawal, how the account was titled, whether a personal representative (executor/administrator) has authority, and whether the withdrawal was authorized.

1. Who has the legal authority to handle a decedent’s money?

After death, only a person with legal authority (usually the personal representative appointed by the probate court) may legally collect, manage, and distribute the decedent’s assets. That authority typically starts once the probate court issues letters testamentary or letters of administration. Until a personal representative is appointed, banks sometimes freeze accounts or may permit withdrawals only upon seeing proof of authority.

2. Was the withdrawal authorized?

Common scenarios:

• Joint accounts with right of survivorship: If the account was properly titled as a joint account with survivorship, the surviving co-owner usually keeps the funds and the money typically does not become part of the probate estate.
• Payable-on-death (POD) or beneficiary designations: Funds pass to the named beneficiary and avoid probate.
• Account solely in decedent’s name: Withdrawals after death generally lack legal authority unless made by an authorized representative or to pay legitimate estate expenses after appointment.
• Authorized agent under a power of attorney: A power of attorney ends at the principal’s death, so the agent cannot use it after the person dies.

3. Causes of action the estate can use to recover funds

If withdrawals were not authorized, the personal representative can pursue recovery using civil claims such as:

• Conversion: The wrongful exercise of control over the decedent’s property.
• Unjust enrichment / money had and received: To reach funds a wrongdoer kept improperly.
• Constructive trust or tracing: To follow funds that were moved or spent and require the wrongdoer to return them or their value.
• Breach of fiduciary duty: If the person who withdrew funds was a fiduciary (for example, a guardian or personal representative acting beyond authority).

These claims can lead to a court order requiring repayment, interest, and sometimes costs. The estate may also obtain a court order to freeze remaining funds or to compel an accounting.

4. Criminal liability

Using a deceased person’s funds without authority can also be criminal theft. The estate can refer the matter to authorities if fraud or intentional theft is suspected. Criminal charges are separate from civil recovery, but they can support an estate’s claim and sometimes lead to restitution orders.

5. What about credit card charges made after death?

Generally, the decedent’s estate — not individual heirs — is responsible for legitimate charges the decedent authorized or that were posted before death. Charges made after death, without authorization, are typically not enforceable against the estate. The card issuer may demand payment; the estate’s personal representative should notify the issuer of the death, dispute unauthorized charges, and provide required documentation. If a family member used the card after death without permission, the issuer may pursue that person, and the estate can sue for reimbursement.

6. Practical steps to try to recover the money in Wyoming

1. Stop further withdrawals: Ask the bank to freeze the account and preserve records. Notify credit card companies of the death and dispute post-death charges.
2. Identify the personal representative: If a will names an executor, that person should file for probate. If there is no will, an interested heir can petition the court to be appointed administrator.
3. Gather evidence: Bank records, withdrawal slips, ATM surveillance (if available), credit card statements, and communications about the account.
4. Send a written demand: The personal representative can send a demand letter requesting return of the funds and warning of legal action.
5. File a lawsuit in probate or civil court: If informal demands fail, the estate can pursue civil claims (conversion, unjust enrichment, accounting) to recover funds. The probate court also has powers to resolve disputes among heirs and order distributions.
6. Consider involving law enforcement: If theft or fraud is suspected, contact local law enforcement or the county attorney for criminal investigation.

7. Timing and limits

Statutes of limitations limit how long the estate has to sue. Different claims (tort, contract, probate issues) have different time limits. Start the recovery process promptly and consult a Wyoming attorney to confirm applicable deadlines.

8. Cost and likely outcomes

Recovery is more likely when clear records show who took the money, when, and that no authorization existed. Recovering funds through demand and negotiation is common. Where the amount is large or the facts are contested, litigation may be necessary. The estate may recover principal, interest, and sometimes legal costs, but recovery is not guaranteed if the defendant lacks funds or valid defenses (such as valid joint ownership or an enforceable beneficiary designation).

For more on Wyoming probate law, see the Wyoming Legislature’s statutes for Title 2 (Probate and Decedents’ Estates): Wyoming Statutes – Title 2 (Probate). For general probate procedures and forms, see the Wyoming Judicial Branch website: Wyoming Courts. The Wyoming State Bar also has consumer resources about probate: Wyoming State Bar.

Helpful hints

• Act quickly. Freeze accounts and notify banks to preserve records.
• Don’t rely on oral statements. Get everything in writing — bank confirmations, email, and demand letters.
• Look at how accounts are titled: joint accounts and POD designations often determine whether funds pass outside probate.
• Get appointed as personal representative if you are an interested heir and no one else is acting; only a court-appointed representative has full authority to recover estate assets.
• Consider mediation for family disputes — it can be faster and cheaper than litigation.
• If the amount taken is small, weigh the costs of a lawsuit against likely recovery; small-claims or simplified probate procedures may help.
• If you suspect criminal conduct, contact law enforcement in addition to pursuing civil recovery.
• Keep clear records of all communications, dates, amounts, and witnesses — courts rely on documentary evidence.

If you need help evaluating the facts, a Wyoming probate or civil litigation attorney can explain your options, calculate potential recovery, and represent the estate in court or negotiations.

Reminder: This article is informational only and is not legal advice. Consult a licensed attorney in Wyoming to discuss your situation and legal options.