Can You Withdraw Money From a Parent's Account After Their Death?

From September 11, 2026, the Ministry of the Interior and Safety, the Financial Services Commission and the Financial Supervisory Service launched a 'rapid blocking system for financial transactions in the names of deceased persons'. Information on deaths is shared with financial institutions daily, so once a death report is received, transactions in the deceased's name are blocked across banks, insurers, card companies, securities firms and all other financial institutions from the next day. Strictly necessary transactions, such as deposits into the account, and exceptional withdrawals are still allowed.

What matters is that the cutoff is the day after the death is reported, not the date of death. Before the report, a debit card or mobile banking may still work, but that does not mean you may withdraw money. Inheritance begins at the moment of death, and from then on the deposits belong to the heirs.

If you urgently need money, for example for funeral costs or unpaid medical bills, use the financial institution's exceptional withdrawal system. You bring a family relationship certificate (가족관계증명서), your ID and the bill from the funeral home or hospital, and after checking them the institution sends the money directly to the hospital, care facility or funeral home.

Handled this way, there is a record of where the money went, which reduces problems both among siblings and later if you renounce or take limited acceptance. Automatic transfers may stop, so switch utility bills and insurance premiums to another account in advance.

Keep the amounts handled by exceptional withdrawal and the receipts together. They are used as proof of funeral costs when settling among the heirs later or when filing inheritance tax. If part of the funeral costs was covered by condolence money, write that down too to reduce misunderstandings among siblings.

First, you may lose the ability to renounce or take limited acceptance (한정승인). Disposing of estate property is treated as simple acceptance (단순승인), so if you use the withdrawn money for living costs or to pay your own debts, you risk taking on the deceased's debts as well. There is case law holding that reasonable funeral costs are not a disposal, but you must be able to prove them with receipts.

Second, if you have siblings, you will have taken the other heirs' shares too. You may face a claim to return the money, and there have been cases where people who secretly transferred money using the deceased's card and PIN were punished for computer-related fraud or embezzlement. The Criminal Act has been amended so that, for offenses on or after June 27, 2024, family members can be punished if a complaint is filed.

Third, there is inheritance tax. Tax audits often ask what large withdrawals before and after the death were used for, and if you cannot explain where the money went, it can count against you.

The heirs can receive the deposits by agreeing on and writing an agreement on division of the estate, and going to the bank with certificates of seal impression (인감증명서) and family relationship documents. Required documents vary slightly by bank, so call ahead to check. Some banks have a procedure for paying out small deposits with only some of the heirs.

Under case law, ordinary deposits are divided by statutory shares at the moment of inheritance and belong to each heir, but in practice banks often require the consent of all the heirs. If there is no agreement, you can ask the bank to pay your statutory share, or resolve it within division of the estate proceedings.

If you are considering renunciation or limited acceptance, it is better not to withdraw the deposits even through the proper procedure, because the moment you withdraw them, it may be seen as a disposal. If you have taken limited acceptance, the deposits withdrawn are property to be distributed to creditors, so keep them separate and do not use them personally.

First, obtain the transaction records of the deceased's account from before and after the death as an heir, and check the dates, amounts and receiving accounts. For withdrawals after the death, you can claim back your share; for withdrawals before the death, the issues are whether your parent allowed it and what it was used for, and it is resolved as a gift or through a claim for return.

A criminal complaint must be filed within 6 months from the day you learned who the offender was, and filing one can make family relationships even harder. Decide carefully, weighing it against recovering the money through civil proceedings. Jisan Law reviews the case with you in line with how it unfolds, from analyzing the transaction records to a claim for return and, if needed, a criminal complaint. If the situation is urgent, send us a message through the chat on this page.