Unauthorized or Improper Charges Affecting a Decedent’s Estate: A Colorado FAQ

Short answer: In Colorado probate, the personal representative (executor or administrator) must identify estate assets, evaluate and pay valid debts, and protect the estate from improper or unauthorized charges. Unauthorized charges can be challenged through the probate process, recovered from the responsible person, or pursued as a breach of fiduciary duty or a criminal matter depending on the facts.

Detailed answer

What counts as an unauthorized charge?

Unauthorized charges commonly include:

Debits or withdrawals from the decedent’s bank accounts made after death by an unauthorized person.
Credit card or recurring subscription charges that continued after death without authorization.
Charges made by the personal representative that were not permitted by the will, court, or statute.
Payments labeled as estate debts that were actually personal expenses of a caregiver, family member, or creditor without proper legal basis.

Who is responsible for handling these charges in probate?

Once probate opens, the court-appointed personal representative has the legal duty to gather assets, identify creditors, notify interested parties, and pay legitimate debts in the priority set by law. The representative must protect estate assets against improper depletion. If the personal representative caused or allowed unauthorized charges, beneficiaries can challenge the representative’s conduct in probate court.

How the Colorado probate process addresses unauthorized charges

Inventory and accountings: The personal representative must identify and list estate assets and give beneficiaries or the court an accounting. That process will surface unauthorized withdrawals or improper payments.
Creditor claims and verification: Legitimate creditors may present claims against the estate. The representative evaluates these claims and pays valid obligations from estate assets. Charges that are not valid claims (for example, a family member’s personal expense) should not be paid from estate funds.
Recovery of improper payments: If unauthorized charges were paid from estate assets, the representative should try to recover the funds from the person who took them. If the representative fails to act, beneficiaries may petition the probate court to compel recovery.
Surcharge and breach of fiduciary duty actions: Beneficiaries may ask the court to surcharge (require repayment by) a personal representative who misapplied estate funds. The court can order repayment, interest, removal of the representative, and other remedies.
Removal of a personal representative: If a personal representative misuses estate assets or otherwise fails to perform duties, interested parties can seek removal and appointment of a new representative.
Criminal and civil claims against third parties: Unauthorized post-death charges by a third party may be theft or fraud. Law enforcement can investigate criminally; the estate (through the personal representative) can also pursue a civil claim to recover funds.
Final distribution: The representative must resolve valid claims and any estate restitution obligations before distributing assets to beneficiaries. If unresolved issues remain, the court can delay distribution or require a bond or reserves.

Relevant Colorado law resources

Colorado’s probate, trusts, and fiduciary statutes are in Title 15 of the Colorado Revised Statutes. For the probate rules and statutory framework, see the Colorado Revised Statutes (Title 15) and the Colorado Judicial Branch resources:

Common outcomes

Depending on the situation, typical results include:

Recovery of the unauthorized funds to the estate (voluntary return, civil suit, or surcharge).
Replacement of the misbehaving personal representative and court-ordered accounting and repayment.
Court-ordered reserves or delay in distribution while allegations are resolved.
Criminal prosecution of the person who unlawfully took estate funds (if conduct rises to theft, fraud, or embezzlement).

How to act if you suspect unauthorized charges

Ask for the probate file and any inventory or accountings filed with the court. Probate filings are generally public and will show receipts and expenditures.
Contact the personal representative in writing. Request explanations and documentation for any suspect transactions.
Preserve evidence: bank and credit card statements, copy of the death certificate, correspondence, and any receipts or logs that show payments or withdrawals.
Ask the bank to freeze disputed accounts if you reasonably believe assets are being dissipated. Banks often require a certified copy of the death certificate and court paperwork before freezing or releasing funds.
If the representative will not act to recover funds, consider filing a petition in probate court asking the judge to require an accounting, surcharge the representative, remove the representative, or otherwise protect estate assets.
Consider criminal reporting if you suspect theft or fraud by a third party or a representative.
Consult a Colorado probate attorney if the amount involved or the complexity justifies legal help. An attorney can file petitions, negotiate recoveries, and represent beneficiaries in court.

Helpful Hints

Gather bank/credit statements for at least 12–24 months before and after death to spot suspicious activity.
Keep copies of all probate filings. The estate inventory and accountings are the primary documents that show how assets were handled.
If you are a beneficiary, communicate in writing and keep a clear paper trail.
If the personal representative is a family member, remember that familial relationship alone does not excuse improper charges or self-dealing.
Act promptly. Delays can make recovery harder and allow assets to be spent or transferred out of reach.
Look for red flags: large cash withdrawals after death, rapid depletion of accounts, payments to caregivers without documentation, or transactions inconsistent with the decedent’s usual patterns.
Ask the court for interim relief (such as a temporary freeze or bond) if you can show a risk of further dissipation of estate assets.
Keep expectations realistic: probate is fact-driven and sometimes slow. Legal remedies exist, but they require documentation and court procedures.

When to get a lawyer

Talk to a Colorado attorney if:

The amount taken is significant.
The personal representative refuses to act or appears to have taken funds.
There are complex creditor or tax consequences.
You want to file a petition to remove or surcharge the representative or to open a civil claim against a third party.

Disclaimer: This article provides general information about Colorado probate and handling of unauthorized charges. It is not legal advice, does not create an attorney-client relationship, and does not address all facts or exceptions that may apply to any specific situation. For tailored legal advice, consult a Colorado-licensed probate or estate litigation attorney.