What happens if money is withdrawn from a deceased person's account?

Question

José Manuel Alburquerque · Accepted Answer

From the moment of death, the money that belonged to the deceased is part of the estate and the bank freezes their accounts as soon as it finds out. Withdrawing it with their card, their passwords or an authorisation that is no longer valid is not allowed. The heirs can claim it back and the money still counts for the “impuesto de sucesiones”, the Spanish inheritance tax. If the person who withdraws it is an heir, they may be bound to accept the inheritance with all its debts. What the law says Authorisations end on the death of the account holder. The authorised person can no longer use the account. The money becomes part of the estate. Anyone who withdraws it on their own initiative must return it. If the account has another holder, the bank may let them carry on withdrawing money. But the part that belonged to the deceased is still part of the estate. If the person who withdraws it is an heir and spends it as their own, they may be deemed to have accepted the inheritance. If an heir keeps the money or hides it, they can no longer renounce the inheritance, even if they try. They are liable for the deceased's debts with their own assets too. Between very close relatives, such as parents, children, siblings or spouses, normally only the money can be claimed back. If someone else withdraws it, it may also be a criminal offence. What can still be paid With the account frozen, the bank carries on paying direct debits. It also usually allows the funeral to be paid for and, if the heirs ask, it pays the inheritance tax. For anything else, all the heirs must authorise it. And inheritance tax The tax is calculated on the balance on the day of death, even if money was withdrawn afterwards. In addition, the tax authorities can add to the estate the money that left the deceased's accounts in the year before death. To avoid this, it must be shown that the money, or what was bought with it, is still part of the estate. It is also enough to show that it was the deceased themselves who paid it out or gave it to someone who inherits nothing and is not a relative up to uncles, aunts, nephews and nieces.