What legal recourse do I have if a relative misappropriates funds from a parent’s joint bank account?

1. Detailed Answer

Joint Account Ownership Rights

In Pennsylvania, joint bank account owners generally may withdraw funds from the account, but ownership as between the parties depends on the net contributions of each party unless there is clear and convincing evidence of a different intent. If a relative withdraws funds without your parent’s knowledge or consent, that action may violate your parent’s rights and state law.

Civil Remedies

• Conversion: You can file a civil suit for conversion, a common-law tort. Conversion occurs when someone wrongfully exerts control over another’s property. A court may order the relative to return misappropriated funds and pay damages.
• Constructive Trust or Unjust Enrichment: If the relative benefited improperly, you may ask the court to impose a constructive trust or award restitution under equitable principles. The court forces the wrongdoer to disgorge benefits unjustly gained.
• Accounting and Removal of Agent: If the relative acted under a power of attorney, you may petition the court under 20 Pa.C.S. § 5610 to review the agent’s conduct, require an accounting, and grant appropriate relief. The court can order removal of the agent and require repayment.

Criminal Remedies

Your situation may also qualify as theft. Under 18 Pa.C.S. § 3921, unlawful taking or exercising unlawful control over movable property of another is a crime. You can report the conduct to local law enforcement. Prosecutors may pursue charges and seek restitution.

Protective Proceedings and Guardianship

If your parent lacks capacity or is vulnerable, you may petition for guardianship. Under 20 Pa.C.S. § 5511, the court can appoint a guardian to manage finances and prevent further abuse. A guardian must provide periodic reports and protect the incapacitated person’s assets.

2. Key Steps to Take if Someone Misappropriates Funds

1. Gather all bank statements and transaction records showing unauthorized withdrawals.
2. Contact the bank immediately to report the unauthorized transfers and request a freeze on further withdrawals.
3. Consult an attorney experienced in Pennsylvania probate and fiduciary law to evaluate your civil options.
4. Consider filing a civil lawsuit for conversion or unjust enrichment to recover funds.
5. Report potential criminal conduct to law enforcement under 18 Pa.C.S. § 3921.
6. If your parent is incapacitated, petition for guardianship under 20 Pa.C.S. § 5511.

Contact Pierce Law Group for Help

Misappropriation of a parent’s joint account can drain lifetime savings and strain family relationships. You do not have to face this alone. Pierce Law Group has seasoned probate attorneys who handle misappropriation, conversion claims, guardianships, and power of attorney disputes in North Carolina. To protect your parent’s assets, email us at intake@piercelaw.com or call us at (919) 341-7055. Let us help you secure your parent’s financial future.