How Do I Settle an Estate in Alabama?
Settling an estate in Alabama: the personal representative files the estate inventory within 60 daysAla. Code §§ 43-2-835, 43-2-836Verified Sep 15, 2026View source of appointment; creditors have 6 monthsAla. Code §§ 43-2-60, 43-2-61, 43-2-350, 43-2-354, 43-2-371Verified Sep 15, 2026View source to present claims; a simple estate closes in 6 months to 12 months.
Settling an estate in Alabama means gathering the assets, notifying creditors, paying debts and taxes, and distributing what remains to the beneficiaries. Assets in a living trust settle privately without the court. An estate that needs probate takes 12 months to 18 months on average, and the creditor claim period of 6 monthsAla. Code § 43-2-350Verified Sep 8, 2026View source is the floor. In a probate case the inventory of estate assets is due within 60 daysAla. Code §§ 43-2-835, 43-2-836Verified Sep 15, 2026View source of appointment, and Alabama requires a formal appraisalAla. Code §§ 43-2-835, 43-2-836Verified Sep 15, 2026View source.
Alabama allows estates with personal property of $47,000Ala. Code § 43-2-696.02Verified Sep 8, 2026View source or less to use the Summary DistributionAla. Code § 43-2-696.02Verified Sep 8, 2026View source, which avoids full probate administration. Alabama's small estate shortcut is a court procedure: the court's own order authorizes collection. There is no affidavit to present to a bank. The waiting period is 30 daysAla. Code § 43-2-696.02Verified Sep 8, 2026View source after death.
The creditor claim period of 6 monthsAla. Code §§ 43-2-60, 43-2-61, 43-2-350, 43-2-354, 43-2-371Verified Sep 15, 2026View source runs from the personal representative's appointment. The executor must publish notice in a local newspaperAla. Code §§ 43-2-60, 43-2-61, 43-2-350, 43-2-354, 43-2-371Verified Sep 15, 2026View source for 3Ala. Code §§ 43-2-60, 43-2-61, 43-2-350, 43-2-354, 43-2-371Verified Sep 15, 2026View source consecutive weeks and send direct notice to known creditorsAla. Code §§ 43-2-60, 43-2-61, 43-2-350, 43-2-354, 43-2-371Verified Sep 15, 2026View source. Final distribution waits until the period has run.
Alabama requires a bond of the personal representative by defaultAla. Code § 43-2-851Verified Sep 8, 2026View source. The requirement can often be excusedAla. Code § 43-2-851Verified Sep 8, 2026View source, by a waiver in the will, agreement of the heirs, or court order. A corporate surety's premium runs about 0.5%Ala. Code § 43-2-851Verified Sep 8, 2026View source of the bonded amount a year. The bond protects beneficiaries and creditors against mismanagement by the personal representative. The Alabama executor fee calculator covers what the role itself can charge.
In Alabama, a simple estate typically settles in 6 months to 12 months, and an average estate in 12 months to 18 months. An estate with a dispute, a tax issue or an unusual asset runs longer.
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Death of a Parent
A step-by-step guide to what happens after a parent dies: the documents to find, the certificates to order, and whether probate is even required.
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Loss of a Spouse
What a surviving spouse needs to do: death certificates, survivor benefits, whether probate is even required, and the tax election that expires.
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Named as Executor
What an executor actually does: getting appointed, notifying creditors, paying debts and taxes, and where personal liability starts.
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Named as Trustee
Being named trustee means managing trust assets and carrying out the grantor's wishes. Your duties, timeline, compensation, and how to get started.
Learn moreForms for Settling an Estate in Alabama
Free forms for settling an estate in Alabama: the probate petition, small estate affidavit, notice to creditors, inventory, and closing forms.
Digital Assets Recovery Letter
Prepare a letter requesting a deceased person's online accounts, points, and balances from the program that holds them.
Petition for Probate and Letters
In Alabama, the petition asks the Probate Court of the county where the decedent was domiciled to appoint the personal representative, whose authority is proved by Letters Testamentary or Letters of Administration; every appointment goes through the courtAla. Code §§ 43-2-20, 43-2-40 (letters granted by the probate court; Alabama has no registrar/informal-appointment track)Verified Sep 8, 2026View source.
Notice to Creditors
In Alabama, the notice to creditors is published for 3Ala. Code §§ 43-2-60, 43-2-61, 43-2-350, 43-2-354, 43-2-371Verified Sep 15, 2026View source weeks in a local newspaper, and creditors have 6 monthsAla. Code § 43-2-350Verified Sep 8, 2026View source from the personal representative's appointment to present claims.
Renunciation of Executor
In Alabama, a person named as executor may renounce the right to serveAla. Code § 43-2-25Verified Sep 22, 2026View source before anyone is appointed.
Estate Inventory
In Alabama, the personal representative files the estate inventory within 60 daysAla. Code §§ 43-2-835, 43-2-836Verified Sep 15, 2026View source of appointment.
Estate Closing
In Alabama, the personal representative is discharged by court orderAla. Code §§ 43-2-628, 43-2-516Verified Sep 15, 2026View source, and a final accounting is required.
Tools for Settling an Estate in Alabama
Free tools for settling an estate in Alabama: whether probate is needed, executor and trustee pay, creditor deadlines, and inheritance taxes.
How Many Death Certificates Do I Need?
In Alabama, certified death certificates come from the Alabama Department of Public Health - Center for Health StatisticsAlabama Department of Public Health - Center for Health StatisticsVerified Oct 15, 2026View source; the first copy costs $15Alabama Department of Public Health - Center for Health StatisticsVerified Oct 15, 2026View source, additional copies $6Alabama Department of Public Health - Center for Health StatisticsVerified Oct 15, 2026View source each.
Do I Need Probate?
In Alabama, estates with personal property of $47,000Ala. Code § 43-2-696.02Verified Sep 8, 2026View source or less qualify for the Summary DistributionAla. Code § 43-2-696.02Verified Sep 8, 2026View source, 30 daysAla. Code § 43-2-696.02Verified Sep 8, 2026View source after death, a court procedure short of full probate.
Do I Have to File Tax Returns for Someone Who Died?
Alabama requires a final state income tax return for the decedent alongside the federal Form 1040Ala. Code § 40-18-5Verified Sep 20, 2026View source; a federal estate tax return (Form 706) is required only for estates above $15,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source.
What Do I Do When Someone Dies?
After a death in Alabama, the estate either qualifies for the simplified procedure for estates under $47,000Ala. Code § 43-2-696.02Verified Sep 8, 2026View source or goes through probate, where creditors have 6 monthsAla. Code § 43-2-350Verified Sep 8, 2026View source to file claims after notice.
How Much Are Estate & Inheritance Taxes?
Alabama levies no estate or inheritance taxNo state estate or inheritance tax. The Ala. Code Title 40, Ch. 15 estate tax (§ 40-15-2) is a federal-credit "pickup" tax — still codified, but levied "only ... to the extent of absorbing" the federal state death tax credit, so it has computed to $0 since Congress eliminated that credit. Alabama has no separate inheritance tax and no gift tax, and the Alabama Department of Revenue confirms estates with a date of death after Dec. 31, 2004 are not required to file.Verified Sep 15, 2026View source; only the federal estate tax applies above $15,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source.
What Taxes Apply to My Inheritance?
Alabama imposes no inheritance or estate taxNo state estate or inheritance tax. The Ala. Code Title 40, Ch. 15 estate tax (§ 40-15-2) is a federal-credit "pickup" tax — still codified, but levied "only ... to the extent of absorbing" the federal state death tax credit, so it has computed to $0 since Congress eliminated that credit. Alabama has no separate inheritance tax and no gift tax, and the Alabama Department of Revenue confirms estates with a date of death after Dec. 31, 2004 are not required to file.Verified Sep 15, 2026View source; probate assets arrive when the estate closes, 6 months to 12 months for a simple estate.
How Does Step-Up in Basis Work?
Inherited assets in Alabama take a basis reset to fair market value on the date of death26 USC § 1014Verified Sep 15, 2026View source, and the gain on a later sale faces ordinary income tax at the state's regular ratesAla. Code § 40-18-5 (graduated 2%/4%/5% individual income tax) — ADOR rate FAQVerified Sep 15, 2026View source.
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Alabama Estate Settlement Resources
In-depth guides covering Alabama probate, estate administration, and settling an estate.