Quick answer

Yes. A sibling’s withdrawal from a deceased parent’s bank account can be questioned before estate settlement is completed. The key questions are whether the sibling had authority to withdraw, who owned the funds, and how the withdrawn money was used.

A withdrawal is not automatically unlawful merely because it occurred before settlement. Philippine tax rules permit certain withdrawals after death. But permission to withdraw does not, by itself, give one heir exclusive ownership of estate money. Funds belonging to the estate must be accounted for, and money retained without a legal basis may have to be returned. These principles follow from the Civil Code’s rules on inheritance, common ownership before partition, and restitution. Civil Code, Articles 22, 777 and 1078

When can a sibling withdraw after the parent’s death?

Withdrawal through the bank’s deceased-depositor procedure

The TRAIN Law amended Section 97 of the National Internal Revenue Code to allow withdrawals from a deceased depositor’s account subject to 6% final withholding tax. This means that unfinished estate settlement does not necessarily prevent every withdrawal. Republic Act No. 10963, Section 27

Under the implementing regulations and BIR Revenue Memorandum Circular No. 62-2018:

The executor, administrator or a legal heir may use this procedure within one year from death.
For a joint account, withholding is based on the deceased depositor’s share.
The withdrawing person must present the estate’s tax identification number and the estate’s BIR Form 1904, duly received by the appropriate BIR office.
The bank issues BIR Form 2306 as proof of withholding.
Deposits already declared for estate-tax purposes and covered by an electronic Certificate Authorizing Registration, or eCAR, presented to the bank are no longer subject to this withholding.

The circular expressly allows banks to require additional documents to establish identity and the right to claim. It therefore does not guarantee release merely upon someone’s assertion that they are an heir. BIR RMC No. 62-2018

The regulations took effect beginning January 1, 2018. Older deaths or transactions need examination under the applicable historical rules. The one-year withdrawal window is also different from the deadline for bringing a civil claim against a sibling. BIR Revenue Regulations No. 12-2018

Withdrawal using the parent’s power of attorney or banking credentials

An ordinary power of attorney generally ends when the principal—the person who granted it—dies. A sibling who managed the parent’s finances during life should not assume that the same authority continues afterward.

In Rallos v. Felix Go Chan & Sons Realty Corporation, the Supreme Court explained the statutory exceptions: certain agencies established in a protected common or third-party interest, and acts performed without knowledge of the principal’s death where the third party also acted in good faith. These exceptions require supporting facts. Rallos, G.R. No. L-24332, January 31, 1978

Possession of an ATM card, PIN, passbook or online-banking password establishes practical access. It does not, by itself, establish continuing legal authority or ownership.

Does a joint account belong entirely to the surviving sibling?

Not necessarily. Obtain the actual account agreement and evidence showing where the money came from.

In Anita Ong Tan v. Rodriguez, the Supreme Court held that joint depositors’ shares are presumed equal unless contrary evidence proves otherwise. The Court accepted evidence establishing that the funds belonged exclusively to one depositor. An account’s joint designation therefore does not conclusively determine ownership of its balance. G.R. No. 230404, January 31, 2018

A survivorship agreement may change the result by providing that the surviving depositor acquires the funds. In Vitug v. Court of Appeals, the Supreme Court upheld such an agreement, while explaining that it may be challenged if used to conceal an excessive donation, defraud creditors or defeat a compulsory heir’s legally reserved share. Its existence and validity must be established; they should not be inferred merely from an “and/or” account designation. Vitug, G.R. No. 82027, March 29, 1990

A surviving spouse’s property rights may also affect how much belongs to the parent’s estate. The entire account balance should not automatically be divided among the children.

What must be accounted for or returned?

An accounting should trace the original withdrawal through to its present location or documented expenditure. Request:

The withdrawal date, gross amount and transaction reference.
Any tax withheld and the supporting certificate.
The receiving account or person.
Each claimed expense, with receipts and proof of payment.
The amount still held and any interest earned.

Before partition—the legal division of the estate—multiple heirs generally own the estate in common, subject to the deceased’s debts. One sibling cannot settle everyone’s entitlement simply by withdrawing an amount and calling it “my inheritance.” Article 1087 also requires adjustments between co-heirs for estate income, useful and necessary expenses, and damage caused through malice or neglect. Civil Code, Articles 1078 and 1087

Where the sibling is the court-appointed executor or administrator, Rule 85 expressly requires accounting for estate assets received. Necessary administration expenses may be allowed, but unsupported personal spending is not established as an estate expense merely by describing it that way. Rules of Court, Rule 85

The amount recoverable depends on ownership, valid payments and any lawful distribution. Recovery ordinarily restores the estate’s funds for settlement; it does not necessarily require immediate payment of the entire withdrawal to the complaining sibling.

How to challenge the withdrawal

Start with a written request and preserve the evidence

Prepare a short chronology covering the parent’s death, the suspected transactions, when they were discovered and the sibling’s explanations. Preserve documents lawfully available to you, including:

Death and relationship certificates.
Bank statements, transaction alerts and transfer confirmations.
Account agreements, powers of attorney and estate documents.
Messages acknowledging withdrawals or explaining their purpose.
Receipts, invoices and proof of claimed payments.

Send a factual written request for the accounting and supporting documents. Identify the transactions you question, ask that remaining funds be preserved, and retain proof that the request was received. Avoid stating that theft or fraud has been proved when the records remain incomplete.

Notify the bank in writing of the death and disputed transactions. Ask it to preserve relevant withdrawal documents and electronic records, identify its deceased-depositor requirements, and explain what it can disclose to an authorized estate representative.

Bank secrecy limits access. The BSP’s official primer explains that the litigation exception under Republic Act No. 1405 concerns money that is itself the subject of the dispute. It does not authorize unrestricted examination of another person’s accounts. Foreign-currency deposits have separate confidentiality rules. Counsel may need to seek appropriately limited court process. BSP, Primer on Bank Secrecy

Raise the missing funds in an existing estate case

Give the evidence to the estate’s lawyer or representative and identify any omission from the inventory.

Under Rule 87, Section 6, an interested heir may ask the estate court to examine a person suspected of concealing or improperly transferring estate property. In Chua v. Absolute Management Corporation, the Supreme Court explained that this procedure secures information and evidence. It is not automatically a final judgment establishing ownership or ordering recovery. G.R. No. 144881, October 16, 2003

If the sibling is the appointed administrator and neglects accounting duties, removal may be sought under Rule 82, Section 2. Removal requires grounds and a court ruling. Rules of Court, Rule 82

Determine whether a separate recovery action is necessary

A separate civil action may be needed where ownership is genuinely disputed, particularly when someone claims title adverse to the estate. However, the Supreme Court recognizes circumstances in which the estate court can resolve ownership disputes among heirs, where the interested heirs are before it and third-party rights are unaffected. The correct procedure depends on the parties and claims. Romero v. Court of Appeals, G.R. No. 188921, April 18, 2012

Rule 87, Section 8 also provides an action by the executor or administrator for double the value of estate property embezzled or alienated before letters testamentary or administration were granted. This is a conditional remedy for the estate—not an automatic penalty for every early withdrawal. Rules of Court, Rule 87, Section 8

If no estate case exists, obtain advice on commencing settlement proceedings or pursuing partition where appropriate. An agreed extrajudicial settlement under Rule 74 requires, among other conditions, no will, no debts, and adult heirs or properly authorized representation of minors. Rules of Court, Rule 74

Situations requiring prompt action

Seek legal help promptly if further transfers are occurring, records may disappear, signatures appear forged, or a settlement document is being circulated without disclosing the withdrawal. Counsel can assess urgent preservation measures and the proper party to seek them.

Do not try to equalize matters by withdrawing other estate funds yourself. Do not sign a waiver, release or settlement confirming receipt of your full share before reconciling the accounts. Keep allegations and financial records within appropriate private, bank and legal channels.

Frequently asked questions

What if the sibling says the money paid for the funeral or hospital bills?

Ask for an itemized reconciliation and supporting receipts. A legitimate expense can affect the amount ultimately recoverable, but the explanation must account for the full withdrawal, including any unused balance.

Does the bank’s approval settle the dispute?

No. Review the documents supporting release, the account agreement and the ownership evidence. Compliance with a bank’s withdrawal process does not itself settle the heirs’ competing rights.

Is the withdrawal automatically theft or estafa?

No. Criminal liability depends on the particular acts and evidence.

Article 332 of the Revised Penal Code also provides exemptions from criminal liability for specified property crimes between certain relatives, including siblings living together, while preserving civil liability. The exemption is not universal: the Supreme Court has held that it does not cover the complex crime of estafa through falsification of public documents. Intestate Estate of Carungcong v. People, G.R. No. 181409, February 11, 2010

Should I wait until the estate is fully settled?

No. Request the records and raise the disputed funds during settlement. Obtain advice promptly on the applicable filing period; the correct deadline depends on the remedy, relevant documents and procedural history.

This article provides general Philippine legal information, not legal advice for a particular dispute.

Sources checked: September 11, 2026.