What to do if someone else is using a deceased parent’s bank or credit card accounts

Quick summary: After a person dies, their accounts usually close or pass according to ownership rules (joint accounts, payable-on-death designations, beneficiary designations). To regain lawful control you normally must produce a certified death certificate and, if necessary, be appointed the estate’s representative (executor/administrator) through probate or use a small‑estate procedure. If a third party is using accounts after death, you can ask the bank to freeze the accounts, demand transaction records, report fraud to police, and pursue civil remedies. This article explains the practical steps under Illinois law and points you to helpful resources.

Disclaimer

This is educational information, not legal advice. I am not a lawyer. For help applying these rules to your situation, contact a licensed Illinois attorney.

Detailed answer — step by step

1. First actions (do these immediately)

• Obtain several certified copies of the death certificate from the county vital records office. Banks typically require a certified copy, not a photocopy.
• Collect any paperwork you can find: bank statements, credit card statements, account numbers, the decedent’s will (if any), any powers of attorney, and contact information for banks and card issuers.
• If you believe someone is using the accounts now, call the bank or card issuer and report the account as belonging to a deceased person. Ask the institution to freeze or suspend activity pending verification. Keep names, dates, and reference numbers for each call.

2. Figure out how each account is owned

Who can lawfully control an account depends on its ownership type:

• Individual accounts (only the decedent named): The institution normally closes the account when presented with a death certificate. The funds become part of the decedent’s estate and are distributed by the executor or administrator after probate.
• Payable-on-death (POD) / Transfer-on-death / beneficiary designations: These pass directly to the named beneficiary without probate. Provide the death certificate and ID to the bank to transfer funds to the beneficiary.
• Joint accounts with rights of survivorship: Survivors on the account typically become sole owners automatically. The surviving joint owner should present identification and a death certificate to the bank.
• Authorized users and credit cards: An authorized user’s privileges are generally terminated when the primary cardholder dies. A joint cardholder may remain responsible for the account balance or have continued access depending on the card agreement and whether the account was truly a joint account.

3. If the account is contested or someone is using it without authority

If another person (for example, a caretaker, roommate, or even a person claiming to be a joint owner) is accessing funds after your parent’s death, take these steps:

1. Ask the bank or card company to freeze the account and provide a written confirmation that they were told the account holder is deceased.
2. Request a complete transaction history and copies of any recent checks, withdrawals, transfers, or card charges.
3. File a police report if you suspect theft, fraud, or identity theft. Obtain a copy of the report to give to the bank and any credit agencies.
4. If the person using the accounts was acting under a power of attorney, remember that a power of attorney ends at the principal’s death. A POA cannot lawfully authorize post‑death transactions. Tell the bank the POA terminated at death and provide a death certificate.
5. If the bank refuses to cooperate, you may need to petition the probate court to appoint a personal representative (executor/administrator) who can demand records and recover assets for the estate.

4. When probate is required (and how it helps)

Probate is the court process that appoints a personal representative and gives that person legal authority to collect assets, pay debts, and distribute property. Under Illinois law, the Probate Act governs estate administration. If accounts are in the decedent’s name alone and banks will not release funds without court authorization, you must open a probate case in the county where the decedent lived. The court issues Letters of Office (or Letters Testamentary/Letters of Administration), which the bank will accept as authority to access the estate’s funds.

General information on Illinois probate procedures is available from the Illinois court system: Illinois Courts — Probate. For the controlling statute (the Illinois Probate Act), see the Illinois Compiled Statutes: search for 755 ILCS 5 at the Illinois General Assembly website: ilga.gov — ILCS.

5. Small estate procedures

Illinois provides simplified procedures for small estates (when the total estate value is below statutory thresholds). If eligible, a small‑estate affidavit or a simplified probate filing may allow transfer of funds without a full probate case. Check the Probate Act and local court rules or consult a probate attorney to see if you qualify.

6. Addressing credit card debts and lender claims

• Creditors must be notified of the death. The estate, not surviving children or relatives personally, generally pays valid debts, unless someone is a joint obligor. If a credit card account was in only the decedent’s name, the estate is responsible; family members are not personally liable unless they signed jointly.
• If a person is running up charges after the death, those charges may be fraudulent. Get transaction records, report fraud to the card issuer, and provide a police report if you filed one.

7. Identity theft and reporting fraud

If you suspect identity theft or fraudulent use of accounts, report it:

• File a police report and keep a copy.
• Contact the three major credit reporting agencies and inform them of the decedent’s death; ask about placing a “deceased person” flag and blocking new credit. (Each credit bureau has procedures; you can find consumer guidance on identity theft at the Illinois Attorney General’s consumer pages: illinoisattorneygeneral.gov.)
• Consider filing an identity-theft complaint with the FTC at identitytheft.gov (federal resource) and keep records of your steps.

8. If the other person refuses to stop or return money

You may have civil remedies such as claims for conversion, unjust enrichment, breach of fiduciary duty (if the person was in a fiduciary role), and an accounting. A personal representative appointed by the probate court can bring those claims on behalf of the estate. In serious cases, criminal charges (theft, fraud, identity theft) may also be appropriate; speak to the police and the prosecutor.

Helpful hints

• Gather multiple certified copies of the death certificate early — banks, investment firms, and government agencies will all ask for one.
• Document every call and contact with banks, card issuers, and anyone using the accounts: date, time, person spoken to, and what was said.
• Do not try to forcibly remove funds or physically seize bank cards; that could lead to civil or criminal claims against you.
• If someone had power of attorney and continues to act after death, tell the bank the POA terminated at death and provide the death certificate; POAs do not survive the principal’s death.
• If funds are needed urgently (for funeral costs or immediate bills), many banks will allow limited disbursement for reasonable funeral expenses upon proof of death and relationship — ask what documentation they need.
• Keep social media and online accounts secure. Close or memorialize online accounts as appropriate to prevent additional identity misuse.
• Consult an Illinois probate or elder‑law attorney if: (a) the estate is sizable, (b) someone refuses to stop using accounts, or (c) you expect contested probate. An attorney can help with filing for appointment as personal representative and pursuing recovery actions.

Where to find official Illinois law and help

• Illinois Courts — Probate topics and forms: https://www.illinoiscourts.gov/topics/probate/
• Illinois Compiled Statutes (searchable index — look up the Probate Act, 755 ILCS 5): https://www.ilga.gov/legislation/ilcs/ilcs.asp
• Illinois Attorney General — consumer/identity theft resources: https://illinoisattorneygeneral.gov/

If you’d like, describe what you know about the accounts (are they joint, POD, credit card types, whether a will or POA exists) and I can outline the most likely next paperwork and court steps for Illinois specifically.