Alabama — Will distribution when a decedent’s home is sold

Short answer: If the home was owned solely by your dad and was sold as part of administering his probate estate, then after valid debts, funeral and administration costs, taxes, and any statutory allowances are paid, any remaining sale proceeds become part of the estate and are distributed according to your dad’s will — unless the property passed outside probate (for example, by joint tenancy with right of survivorship, a transfer-on-death designation, or because it was held in a trust), or a statutory spouse or family allowance claim takes priority.

Detailed answer — what typically happens under Alabama law

When someone dies owning a home in Alabama, the way the sale proceeds are handled depends on how title was held and whether the home became part of the probate estate.

Key steps the personal representative (executor or administrator) follows:

• Identify and gather estate assets, including the net proceeds if the home was sold.
• Notify creditors and pay valid debts, funeral expenses, estate administration costs, taxes, and costs of the sale.
• Pay any statutory allowances (such as the family allowance or homestead allowance) and any other priority claims required by law.
• Prepare an accounting and then distribute the remaining estate assets according to the will. If the will does not dispose of all assets or if there is no valid will, Alabama’s intestacy rules determine who inherits.

So, if the sale of the home generated cash that became part of the estate’s assets, and after the estate’s obligations are paid there is money left, that leftover is generally distributed under the terms of the will (or under intestacy rules if no valid will covers the residue).

Important exceptions and scenarios

• Property passing outside probate: If the home was owned jointly with right of survivorship, had a payable-on-death or transfer-on-death beneficiary, or sat in a living trust, it may pass directly to the co-owner or beneficiary outside probate. Those proceeds would not be distributed by the will. (Check the deed and trust documents.)
• Homestead and exempt property / family allowance: Alabama law provides certain protections for a surviving spouse and minor children (for example, allowances and homestead exemptions). These statutory allowances can have priority over distributions under a will and may reduce the amount available to residuary beneficiaries. See Alabama probate and wills statutes for more on these priorities. A useful starting point is the Alabama Code and probate materials: https://www.legislature.state.al.us/alacode/1975/43/ and https://judicial.alabama.gov/.
• Creditor claims: Creditors have a limited time to present claims against the estate. Valid creditor claims reduce the estate before distribution to beneficiaries.
• Estate administration fees and taxes: Court costs, attorney fees approved by the court, executor compensation (if allowed), and estate or income taxes related to the estate are paid before distributions.
• Will challenges or disputes: If someone contests the will, the court may freeze distribution until the dispute is resolved. A successful challenge can change who receives remaining assets.

In short: where the home was part of probate and sale proceeds remain after paying debts and priority claims, the will governs distribution of those leftovers — but several legal priorities and exceptions can affect the amount that reaches beneficiaries.

How to confirm what happened in your parents’ case

1. Obtain the estate inventory and accounting filed at the probate court. These documents list assets, sale proceeds, creditor claims paid, fees, and the proposed distribution.
2. Check the deed and title records for joint tenancy, survivorship rights, or trust ownership that would remove the property from probate.
3. Ask to see the probate court’s authorization to sell the property (if the sale required court approval) and the receipts for payoff of debts.
4. If you are a beneficiary or interested party, you generally have the right to request information and, if necessary, petition the probate court for an accounting or for relief if you believe the estate was mismanaged.

Where to look in Alabama law

Alabama’s statutes and probate procedures govern the order of payment and distribution of estate assets. For a general statutory starting point, review the Alabama Code sections on wills and probate: https://www.legislature.state.al.us/alacode/1975/43/ and consult the Alabama Judicial System’s resources for probate courts: https://judicial.alabama.gov/.

Disclaimer

This article explains general principles of Alabama probate and estate administration and is for educational purposes only. It is not legal advice. For guidance about a specific estate, or to protect your legal rights, speak with a licensed Alabama probate attorney who can review the facts and applicable law.

Helpful Hints

• Get copies of the probate court file: petition, inventory, accounting, and order approving the sale.
• Look at the deed to see how title was held (sole ownership, joint tenancy, tenancy in common, trust, etc.).
• Ask the personal representative for a written accounting showing sale proceeds, expenses, creditor payments, and proposed distributions.
• Learn whether the surviving spouse claimed statutory allowances or an elective share that could reduce the residual estate.
• If you suspect improper handling, you can file a petition with probate court for an accounting or removal of the personal representative.
• Keep timelines in mind: creditors have deadlines to file claims, and courts have procedures you must follow to raise objections.
• When in doubt, consult a probate attorney — an initial consultation can clarify whether the distribution followed Alabama law and whether you have options to challenge it.