Detailed Answer

Short overview: When you discover unauthorized charges to a parent’s estate in Hawaii, those charges can be addressed both through the probate process and through separate civil or criminal actions. The estate’s personal representative (executor or administrator) has primary responsibility to identify and pursue recovery for wrongful charges, protect estate assets, and pay only valid debts. Beneficiaries can object, seek recovery, or ask the court to remove or surcharge a fiduciary who misused funds.

How the probate system handles unauthorized charges (step‑by‑step)

Personal representative’s duties: The personal representative must marshal assets, prepare an inventory, and safeguard estate funds. If the representative discovers unauthorized charges, they should investigate, document the transactions, and attempt to reverse improper payments where possible.
Notice to creditors and creditor claims: Probate law requires that creditors be given notice so they can present claims for valid debts. The personal representative evaluates creditor claims and pays allowed claims from estate assets in the order the law requires. Unauthorized charges that are actually valid debts of the estate (e.g., pre‑death debts properly charged) are treated as creditor claims; charges that represent theft, conversion, or fraud are not valid estate debts and should be disputed and pursued for recovery.
Distinguishing types of unauthorized charges:
- If a third‑party scammer used the decedent’s accounts, the estate (through the personal representative) can seek recovery from the bank (dispute transactions) and may bring a civil claim and/or report criminal fraud.
- If a family member, caregiver, or the personal representative themselves used estate funds without authority, that is a fiduciary breach or conversion. The estate (or interested beneficiaries) can sue the wrongdoer, ask the probate court to surcharge (require repayment plus interest or damages), and seek removal of the fiduciary.
- If the decedent made the charges before death and they are legitimate obligations, the personal representative must treat them as creditor claims during administration.
Recovery and remedies:
- Ask banks and credit card companies to reverse or freeze transactions and provide fraud investigations and account documentation.
- File a civil action for conversion, breach of fiduciary duty, or unjust enrichment against the person who made the unauthorized charges.
- Seek a surcharge proceeding in probate court to require a personal representative to repay estate losses caused by misconduct or negligence.
- Report suspected crimes (theft, identity fraud, elder abuse) to law enforcement for criminal investigation and to the Hawaii Department of the Attorney General’s consumer protection or adult protective services if appropriate.
Beneficiaries’ rights and court involvement: Beneficiaries may request an accounting, inspect estate records, file objections to reports by the personal representative, and petition the probate court to compel recovery, remove the personal representative, or surcharge them for losses. If the personal representative refuses to act to recover stolen estate assets, beneficiaries can bring the claims on the estate’s behalf.
Record keeping and accounting: The personal representative must maintain accurate records and provide accountings to the court and beneficiaries. Those records form the basis for evaluating unauthorized transactions and proving wrongdoing.
Priority of payments: During administration, the personal representative must pay valid debts and administration expenses in the priority set by law. Unauthorized/invalid charges that are successfully recovered are returned to the estate and available to pay valid debts and distribute to beneficiaries.

Key Hawaii law resources

Hawaii’s probate statutes and procedures govern administration, creditor claims, fiduciary duties, accountings, and related remedies. For the statutory framework, consult the Hawaii Revised Statutes on probate:

Hawaii Revised Statutes (searchable) — start here to locate probate provisions and specific sections that apply to administration and fiduciary duties.
Hawaii State Judiciary — for local probate court procedures, forms, and filing information.

Common scenarios (hypothetical examples)

Scenario A — Unauthorized family spending: A sibling used the decedent’s checking account after death to pay personal bills. The personal representative discovers the withdrawals. The estate demands repayment, petitions the probate court to surcharge the sibling, and files a civil claim for conversion. The court orders repayment and removal of the sibling if they were serving as a fiduciary.

Scenario B — Bank account fraud by a stranger: An unknown person used online credentials to transfer money. The personal representative works with the bank to trace and reverse transactions, files a police report, and pursues civil collection if the bank’s investigation does not restore funds.

What you should do right away

Preserve all records: bank and credit card statements, check images, online account logs, and communications showing the charges.
Notify the personal representative immediately. If you are the personal representative, notify banks, close or freeze affected accounts, and begin an internal investigation.
Contact the financial institutions in writing to dispute unauthorized transactions and request transaction histories.
Consider filing a police report for fraud or theft if the charges look criminal.
If the personal representative fails to act or is the one misusing funds, consult a probate attorney quickly about filing a petition to compel an accounting, surcharge, or removal.

How long do you have?

Timelines vary by statute and by the type of claim (creditor claim, probate objection, civil suit, or criminal complaint). Many probate and creditor deadlines are strict, so act promptly. Check the Hawaii probate statutes and local court rules or consult an attorney to determine exact deadlines that may apply to your situation.

Helpful Hints

Document everything. Create a timeline of the unauthorized transactions with copies of statements and any related emails or texts.
Preserve digital evidence. Save online account screenshots, logins, and IP or device data if available from financial institutions.
Ask the bank for its fraud investigation results in writing. Many banks have special procedures for probate/fraud claims.
If the personal representative is the suspected wrongdoer, beneficiaries can petition the probate court to appoint an independent administrator and to surcharge the fiduciary for losses.
Think criminal and civil. Reporting to police does not prevent a civil claim; both routes may be necessary to recover funds and obtain justice.
Keep beneficiaries informed. Transparent communication can prevent escalation and give the court clear evidence if you need to bring motions or objections.
Consult a probate attorney with experience in estate litigation early. They can advise on timing, evidence, and whether to file a surcharge or removal petition in probate court.

Next steps: Gather records, contact the personal representative and the banks, and, if the representative will not act or is implicated, consult a probate attorney to discuss filing a petition with the probate court to protect the estate and seek recovery.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. It does not create an attorney‑client relationship. For advice about a specific situation, consult a licensed attorney in Hawaii.