Account emptied after death

The death of a relative brings with it a number of legal challenges for heirs. This includes the regulation of banking transactions. Who may immediately make withdrawals from the deceased's account? Which person is obliged to provide information to others in these matters? Who has which authorizations for transactions?

It is not uncommon for authorized representatives to make large withdrawals or transfers from the account before or after the death of the deceased. In some cases, the deceased's account is even emptied completely. Has the account been plundered? What rights do heirs have vis-à-vis co-heirs and authorized representatives?

The most important facts at a glance

• If an account has been emptied after the death of the account holder with power of attorney, this may be unlawful
• Heirs should revoke existing powers of attorney as soon as possible after the death
• In a legal dispute, the authorized representative must prove that he or she handed over the money from the account to the testator
• In many cases, heirs have the right to recover money already disposed of by authorized representatives

Bank account may continue to be used after the death of the account holder

Legally, a bank account continues to exist and can be used even after the death of the account holder. For example, existing standing orders are still executed. However, the credit balance in the deceased's bank accounts is included in the estate. As an heir, you automatically become the account holder after the death of your relative.

In practice, some banks prevent unauthorized disposals by blocking the account after the account holder's death. However, account blocking is not required by law. Therefore, authorized representatives who have a power of attorney after death can continue to withdraw money from the account or initiate transfers.

Withdrawing money from a deceased person’s account with / without power of attorney

Two groups of persons are still entitled to dispose of the account after the death of the account holder:

• Beneficiaries
• Authorized representative

In any case, the heirs are entitled to dispose of the property after death. They only have to prove their entitlement to inherit to the bank. If there are several heirs, dispositions from the account may only be made jointly by the community of heirs.

If an authorized representative who is not entitled to inherit has emptied the account, this is only permissible if the power of attorney survives the death. However, such a power of attorney does not usually include the right to use the money for your own purposes. Such dispositions are not usually part of the competence of the authorized representative. This is because the power of attorney usually stipulates that disposals are to be made on behalf of the account holder.

Authorized representatives who make or have made disposals from the deceased's account are therefore often liable to pay compensation to the heirs. Sometimes the conduct of the authorized representative can even be prosecuted under criminal law. In particular in the case of embezzlement according to § 266 StGB.

Account plundered before death

Unauthorized withdrawals from the deceased's account may have taken place before the death of the deceased. Quite a few heirs even have to deal with account looting. This means that particularly large amounts were withdrawn illegally or even the entire account was emptied.

In such cases, it does not matter whether the account was plundered with a general power of attorney or a simple bank power of attorney. More importantly, the authorized representative must also prove that the money was used for the account holder's benefit before death. In case of doubt, heirs should dispute this and take legal action.

What should heirs do after the account holder’s death?

From a legal point of view, the heirs of the previous account holder become the new owners of the account balance upon his or her death. To avoid unauthorized dispositions, the heirs should take the following measures vis-à-vis the bank:

• Informing the bank about the death of the testator
• Ask the account-holding institution to block the accounts
• Revoking powers of attorney

The heirs have the right to revoke existing powers of attorney for the accounts at any time, as they legally take the place of the deceased account holder. Based on Section 168 sentence 2 BGB, it is sufficient for an heir to do so. This is also possible without the consent of the co-heirs. After revocation, former authorized representatives may definitely no longer withdraw funds from the account.

As many heirs initially have only limited insight into the account movements , they should request these from the bank immediately. If the heirs discover unauthorized dispositions by an authorized representative, compensation may have to be claimed from the authorized representative.

Heirs have the right to reclaim unauthorized withdrawals from authorized representatives. This applies both to dispositions before and after the death of the testator. Section 667 BGB plays a central role in such legal disputes.

This obliges the authorized representative to either hand over withdrawn funds to the account holder or to use them on the account holder's behalf. The so-called claim to surrender is transferred to the heirs after the death of the account holder.

Enforce your claims for compensation

In practice, account dispositions by authorized representatives often become a problem for heirs. The authorized representative must provide the heirs with information and proof that the money was used for the deceased.

It is not uncommon for authorized representatives to refuse to provide information to the rightful heirs or to be unwilling to provide evidence or make the appropriate use of the money credible to the heirs. This can have serious consequences for authorized representatives. They are often obliged to pay compensation to the heirs.

When taking action against authorized representatives who have made unauthorized dispositions, it is extremely important to clarify the facts as a basis for all further steps. Above all, information must be obtained from the authorized representative. If these are refused, it is advisable to consult a lawyer and , if necessary, to file an action for disclosure.

For affected heirs who suspect unauthorized dispositions from their relative's account, CDR Legal offers an initial assessment by telephone.

You can discuss your concerns in detail with CDR Legal in a free initial consultation on inheritance law. You will receive competent legal advice on your individual case as well as a legal assessment of your options. If you would like to seek further help in your case, we will inform you of any legal fees and procedural costs at an early stage.