Estate Planning in Alabama

Like all states, Alabama recognizes formally executed wills and living trusts as valid estate planning tools. A standard will here requires 2Ala. Code § 43-8-131Verified Sep 15, 2026View source adult witnesses, and adding a notarized self-proving affidavit can streamline the probate process later.

An Alabama healthcare power of attorney is signed before 2Ala. Code § 22-8A-4(h)Verified Jul 15, 2026View source witnesses; notarization is not requiredAla. Code § 22-8A-4(h)Verified Jul 15, 2026View source. Witnesses must be at least 19 yearsAla. Code § 22-8A-4(h)Verified Jul 15, 2026View source old and cannot be the named agent, blood relatives or anyone who would inherit from the principal. The agent must be at least 19 yearsAla. Code § 22-8A-4(h)Verified Jul 15, 2026View source old, and Alabama bars the principal’s healthcare providers and employees of the treating facility from serving.

An Alabama financial power of attorney requires neither witnesses nor notarization to be validAla. Code § 26-1A-101 et seq. (esp. §§ 26-1A-104, -105, -106, -107, -109, -113, -119, -201, -217, -301); § 26-1-1 (age of majority); § 35-4-28 (recording); §§ 19-1A-9, -10 (digital assets)Verified Sep 18, 2026View source. A notarized signature carries a statutory presumption that it is genuineAla. Code § 26-1A-101 et seq. (esp. §§ 26-1A-104, -105, -106, -107, -109, -113, -119, -201, -217, -301); § 26-1-1 (age of majority); § 35-4-28 (recording); §§ 19-1A-9, -10 (digital assets)Verified Sep 18, 2026View source. The document is durable by defaultAla. Code § 26-1A-101 et seq. (esp. §§ 26-1A-104, -105, -106, -107, -109, -113, -119, -201, -217, -301); § 26-1-1 (age of majority); § 35-4-28 (recording); §§ 19-1A-9, -10 (digital assets)Verified Sep 18, 2026View source: it stays in effect if the principal becomes incapacitated. A springing power of attorney, one that takes effect only when the principal becomes incapacitated, is permittedAla. Code § 26-1A-101 et seq. (esp. §§ 26-1A-104, -105, -106, -107, -109, -113, -119, -201, -217, -301); § 26-1-1 (age of majority); § 35-4-28 (recording); §§ 19-1A-9, -10 (digital assets)Verified Sep 18, 2026View source.

Alabama does not impose a state estate tax or inheritance tax, which means estates are only subject to the federal estate tax (currently exempting the first $15,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source per person, or $30,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source for married couples using portability). This is a meaningful advantage over the states that layer their own death taxes on top of the federal system.

Alabama does not require a revocable living trust to be notarizedAla. Code § 19-3B-101 et seq.Verified Jul 15, 2026View source. Alabama does not allow transfer-on-death deeds for real estate. Without this option, real property must pass through probate or be held in a trust to avoid court proceedings. Transferring a home into a revocable trust does not forfeit Alabama's homestead exemption—the protection carries through to trust-held property. Transferring property into a revocable trust does not trigger a property tax reassessment in Alabama, so property taxes remain at their current level.

Alabama automatically revokes an ex-spouse as beneficiary on life insurance, retirement accounts, and similar designations upon divorce. However, these automatic revocations can be overridden by a divorce decree or by re-designating the ex-spouse after the divorce. Alabama does not protect inherited IRAs from creditors. Unlike the owner's own retirement accounts, inherited IRAs in Alabama are vulnerable to creditor claims, which is an important consideration when naming beneficiaries.