My Sibling Took Money Before Death — Can the Estate Get It Back?
Families often discover suspicious financial transactions only after a parent dies. Bank accounts may have been emptied. Large checks may have been written to one child. Money may have been transferred using a power of attorney. A sibling may have added his or her name to an account, changed a beneficiary designation, or claimed that a substantial transfer was a “gift.”
If you believe your sibling took money or property from your parent before death, the fact that the transaction occurred while your parent was alive does not necessarily mean the estate has no remedy. In New York, an executor or administrator may be able to investigate the transaction and commence a proceeding in Surrogate’s Court to recover money or property that should belong to the estate.
One of the most important remedies is a proceeding under Surrogate’s Court Procedure Act (“SCPA”) § 2103, commonly referred to as a discovery or turnover proceeding. SCPA 2103 permits an estate fiduciary to seek information about property that may belong to the estate and, where appropriate, seek its return. The statute expressly reaches property obtained before as well as after the creation of the estate.
Can an Estate Recover If My Sibling Took Money Before Death?
Potentially, yes.
The central question is not simply whether the transfer occurred before death. The question is whether the sibling was legally entitled to receive and keep the property.
For example, suppose a daughter was managing her elderly mother’s finances and transferred $250,000 from her mother’s individual account into her own account shortly before her mother’s death. The daughter may claim that her mother intended to make a gift. The executor may contend that the mother never authorized the transaction, lacked the capacity to understand it, was subjected to undue influence, or that the daughter improperly used a power of attorney for her own benefit.
Those issues can be litigated even though the transfer occurred during the parent’s lifetime.
The Appellate Division has specifically recognized Surrogate’s Court jurisdiction over an SCPA 2103 proceeding involving allegations that another person wrongfully took money from a decedent before the decedent’s death. In Matter of Vecchio, the Second Department held that a dispute concerning funds allegedly misappropriated during the decedent’s lifetime affected the affairs of the decedent and administration of the estate and could therefore be heard in Surrogate’s Court.
What Is an SCPA 2103 Turnover Proceeding?
SCPA 2103 gives an executor, administrator, or other estate fiduciary a powerful mechanism for investigating and recovering estate property.
A fiduciary may petition the Surrogate’s Court when property that should be delivered to the estate is allegedly being withheld or when another person has information concerning estate property but refuses to provide it. The proceeding can concern personal property, money, business interests and, depending upon the circumstances, real property or the proceeds or value of property.
Importantly, an SCPA 2103 proceeding can serve both a discovery function and a recovery function. The executor may need information before knowing precisely what happened to the parent’s assets.
For example, the estate may seek records concerning bank withdrawals, wire transfers, checks, brokerage accounts, deeds, business interests or other transactions. Depositions and document discovery may then reveal where the money went and whether there is a basis to require its return.
New York Surrogate’s Courts continue to use SCPA 2103 proceedings for exactly these types of asset disputes. In Matter of Catapano, decided in 2026, the Putnam County Surrogate’s Court addressed discovery in an SCPA 2103 and 2104 proceeding seeking turnover of property allegedly withheld from an estate.
Sibling Took Money Before Death – What If My Sibling Used a Power of Attorney to Take the Money?
A power of attorney can be one of the most important documents in an estate asset-recovery case.
Being named as someone’s agent under a power of attorney does not mean the agent owns the principal’s money or can simply transfer the principal’s property to himself or herself.
Under New York General Obligations Law § 5-1505, an agent under a power of attorney has a fiduciary relationship with the principal. Among other obligations, the agent generally must act according to the principal’s instructions or, absent instructions, in the principal’s best interest; avoid conflicts of interest; keep the principal’s property separate; maintain records; and refrain from making gifts of the principal’s property to himself or herself without specific authorization.
This means that transactions made under a power of attorney deserve careful examination when the agent personally benefited from them.
Sibling Took Money Before Death – Can a Power of Attorney Agent Make Gifts to Himself or Herself?
Not simply because the person holds a power of attorney.
New York law recognizes that an attorney-in-fact is a fiduciary and owes duties to the principal. New York’s Court of Appeals has emphasized that an agent must exercise power for the principal’s benefit and comply with the scope and purpose of the authority given. See Matter of Ferrara, 7 N.Y.3d 244 (2006).
The issue remains highly relevant today.
In Matter of Mahar, decided February 26, 2026, the Niagara County Surrogate’s Court considered transactions made by an attorney-in-fact who transferred property to himself and transferred funds from jointly held accounts to himself. The court concluded, on the record before it, that those transactions constituted unauthorized self-dealing and declared the challenged transfers null and void.
Thus, if your sibling had your parent’s power of attorney and substantial assets suddenly moved to your sibling, the power of attorney itself should be reviewed carefully. The existence of a power of attorney may be the beginning of the analysis—not the end of it.
My Sibling Took Money Before Death – What If My Sibling Says the Money Was a Gift?
This is one of the most common disputes in estate litigation.
The sibling who received the money may say:
“My mother wanted me to have it.”
“My father gave it to me because I took care of him.”
“She told me I could transfer the money.”
“He wanted to give me my inheritance early.”
Whether a valid gift occurred depends upon the evidence and circumstances surrounding the transaction.
A court may examine bank records, checks, transfer documents, text messages, emails, medical records, estate planning documents, testimony from witnesses and the circumstances surrounding the parent’s relationship with the recipient.
The fact that money moved from the parent’s account into a child’s account does not, by itself, resolve whether the transfer was a valid gift.
Where a fiduciary relationship or self-dealing is involved, additional legal presumptions and burdens may also become important.
My Sibling Took Money Before Death – What If the Money Was in a Joint Bank Account?
Joint accounts can present particularly complicated probate litigation issues.
A sibling may argue that because his or her name was added to the parent’s bank account, all money in that account automatically belonged to the sibling. But the legal analysis can depend upon how the account was established, why the name was added, who contributed the funds, how the account was used, and what the parent intended.
Sometimes a parent adds a child to an account primarily for convenience—for example, so the child can pay bills or manage expenses. In other situations, the parent may genuinely intend to create survivorship rights.
When substantial assets are involved, bank signature cards, account-opening documents, statements, checks and evidence regarding the parent’s intent can become critical.
If money was withdrawn from the joint account before death—particularly by someone acting under a power of attorney—that can create additional issues. The 2026 Matter of Mahar decision, for example, addressed a transfer of substantial funds from jointly held accounts by an attorney-in-fact to himself.
My Sibling Took Money Before Death – What If My Parent Was Elderly, Ill, or Had Dementia?
A parent’s age or diagnosis alone does not automatically invalidate a financial transaction.
The relevant questions may include whether the parent understood the transaction, whether the parent intended the transfer, whether another person exerted undue influence, and whether the person making or benefiting from the transaction occupied a fiduciary or confidential relationship with the parent.
Evidence of the parent’s cognitive and physical condition can nevertheless become extremely important, particularly when combined with unusual financial activity.
A transfer may warrant closer scrutiny where, for example, a previously independent parent became dependent upon one child, that child assumed control over the parent’s finances, other family members were isolated from the parent, and substantial assets were then transferred to the child.
These cases are highly fact-specific.
My Sibling Took Money Before Death – What Evidence Can Help Prove That Money Was Improperly Taken?
Financial records are often the starting point.
Depending upon the case, relevant evidence may include bank statements, canceled checks, wire-transfer records, credit card statements, brokerage records, powers of attorney, beneficiary designation forms, deeds, tax returns, emails, text messages, estate planning documents and medical records.
The timing of transactions can also matter.
A series of large transfers made shortly before death may raise different questions than a longstanding pattern of documented gifts. Likewise, a transfer that dramatically departs from the parent’s estate plan may warrant further investigation, although inconsistency with a will does not by itself establish wrongdoing.
Discovery may also include depositions of the sibling who received the money and testimony from financial advisors, accountants, lawyers, caregivers or others with relevant knowledge.
Who Can Bring an SCPA 2103 Proceeding?
SCPA 2103 generally authorizes the estate fiduciary—such as an executor or administrator—to commence the proceeding.
That distinction is important.
A beneficiary who suspects that a sibling wrongfully took estate assets ordinarily cannot simply file an SCPA 2103 proceeding in his or her individual capacity without the necessary fiduciary authority. New York courts have recognized that SCPA 2103 is a remedy available to a fiduciary. Depending on the circumstances, other procedural options may be available, including seeking appropriate limited authority or pursuing relief concerning a fiduciary who refuses to investigate estate assets.
This becomes particularly important when the suspected sibling is also the executor.
If the executor personally benefited from the disputed transfers, the estate may have an obvious conflict because the person who would normally be responsible for investigating and recovering estate property is the same person accused of receiving it.
That situation may require additional Surrogate’s Court relief.
What If the Sibling Who Took the Money Is Also the Executor?
This can turn an asset dispute into a broader fiduciary litigation matter.
An executor has duties to collect estate assets and administer the estate for the benefit of those entitled to receive them. If the executor is also the person accused of improperly receiving substantial assets before death, questions may arise concerning conflicts of interest, disclosure, accounting, discovery, turnover, surcharge and potentially suspension or removal.
The appropriate remedy depends on the facts.
The important point is that beneficiaries do not necessarily have to accept the executor’s statement that “Mom gave me the money” as the end of the inquiry.
Sibling Took Money Before Death – How Far Back Can the Estate Investigate?
There is no single answer that applies to every disputed transaction.
The applicable limitations period can depend upon the legal theory asserted, the nature of the transaction, whether a fiduciary relationship existed, when the conduct occurred, when it was discovered and other circumstances.
For that reason, beneficiaries who discover questionable transfers should consider obtaining legal advice promptly rather than assuming that older transactions cannot be challenged.
What Can the Court Order If the Estate Proves the Money Was Wrongfully Taken?
Depending upon the claims and facts, the Surrogate’s Court may order property or its value returned to the estate and may determine the parties’ respective rights to disputed assets.
An SCPA 2103 proceeding has been compared to claims seeking recovery of property, with the Surrogate determining whether the property or its value should be delivered to the estate.
Once property is restored to the estate, it can be administered in accordance with the decedent’s will or, where there is no will, New York’s intestacy laws.
FAQs About Your Rights When Sibling Took Money Before Death
It depends on the circumstances. A child does not obtain ownership of a parent’s money merely because the child helps manage finances or holds a power of attorney. Authority, intent, capacity, fiduciary obligations and the circumstances of the transaction must be considered.
Yes, potentially. SCPA 2103 expressly permits an estate fiduciary to seek property that should be delivered to the estate even where possession or control was obtained before the estate was created.
The validity of the alleged gift may have to be proven based upon the surrounding facts. Relevant evidence may include financial records, the power of attorney, communications, witness testimony, the parent’s condition, and evidence concerning the parent’s intent.
A power of attorney creates authority, but it also creates fiduciary obligations. New York law generally requires an agent to act in accordance with the principal’s instructions or best interests, avoid conflicts, maintain records and comply with restrictions concerning gifts and self-dealing.
Potentially. The answer depends on the type of claim, applicable statute of limitations and facts of the case. A lawyer should evaluate the specific transactions and dates before conclusions are drawn regarding timeliness.
Depending upon the claims and procedural posture, financial records can be sought through discovery and subpoenas. SCPA 2103 proceedings are frequently used to investigate where estate property went before seeking its return.
Yes, depending upon the circumstances. The fact that an account was titled jointly does not eliminate every possible challenge. The manner in which the account was created, the parent’s intent, contributions to the account, withdrawals and use of a power of attorney may all become relevant.
The conflict may require additional Surrogate’s Court proceedings. Depending upon the facts, beneficiaries may seek an accounting, discovery, recovery of assets and other appropriate fiduciary relief.
Suspect That a Sibling Took Money Before Death?
Discovering unexplained transfers after a parent’s death can raise difficult questions about gifts, powers of attorney, joint accounts, beneficiary designations and control over a vulnerable parent’s finances.
New York Surrogate’s Court provides procedures for investigating those transactions and, when appropriate, recovering property that rightfully belongs to an estate.
RK Law PC represents executors, administrators, beneficiaries and other interested parties in New York probate and estate litigation, including SCPA 2103 discovery and turnover proceedings, contested accountings, fiduciary disputes, power-of-attorney disputes and proceedings involving allegedly misappropriated estate assets.
If you believe Sibling Took Money Before Death, or that money or property was improperly transferred before a family member’s death, contact RK Law PC to discuss the circumstances and potential remedies available under New York law.
For more information, please contact NYC Probate Litigation, Guardianship, Probate, and Estate Planning attorney Regina Kiperman:
Phone: 917-261-4514
Fax: 929-556-2089
Email: rkiperman@rklawny.com
Or visit her at:
40 Wall Street
Suite 2508
New York, NY 10005
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