Step-by-step guide to settling a parent’s estate in Alabama and handling their out-of-state property
This FAQ-style guide explains the common steps to settle a decedent’s estate under Alabama law and to deal with real estate or other assets located in another state. This is educational information only and not legal advice.
Short answer — the basic path
1) Open probate in the Alabama probate court where your parent lived (if a probate is required). 2) If there is a will, have it proved and ask the court to issue Letters Testamentary to the named personal representative (executor). If there is no will, ask the court for Letters of Administration appointing an administrator. 3) Inventory assets, notify creditors, pay valid claims and taxes, and distribute remaining assets according to the will or Alabama intestacy law. 4) For property located in another state, obtain certified court-issued authority (Letters) from Alabama and use them to open an ancillary probate or follow that state’s process for transfer of out-of-state real property. You will likely need a local attorney in the other state for that step.
Detailed answer — step-by-step under Alabama law
1. Confirm whether probate is needed
Identify all assets and how they are titled. Assets that pass outside probate include items that have beneficiary designations (life insurance, IRAs), jointly owned property that passes by right of survivorship, and property with transfer-on-death provisions. Only probate assets (usually titled solely in the decedent’s name) require administration through probate court.
2. Locate and read the will (if any)
If there is a valid will, present it to the probate court in the Alabama county where the decedent lived. The will typically names the personal representative (executor). If there is no will, probate proceeds under Alabama’s intestate succession rules and the court will appoint an administrator (usually a close family member).
3. Open probate in the appropriate Alabama probate court
File a petition with the probate court in the county of the decedent’s domicile to open the estate. The court issues formal authority (Letters Testamentary or Letters of Administration) to the personal representative or administrator. Contact your local probate court through the Alabama Judicial System: https://judicial.alabama.gov/. You can also consult the text of Alabama laws and probate code at the Alabama Legislature site: https://www.legislature.state.al.us/alacode/.
4. Gather and protect assets; prepare an inventory
Collect bank statements, titles, deeds, insurance policies, retirement account information, and other records. Secure property, change locks if necessary, and safeguard valuables. Prepare the inventory and file it with the probate court if the court requires it.
5. Provide notice and handle creditor claims
Follow Alabama’s procedure for notifying known creditors and, where required, publishing notice so unknown creditors can present claims. The personal representative evaluates claims and pays valid debts from estate funds. Unpaid valid claims reduce distributions to beneficiaries.
6. File tax returns and pay taxes
File the decedent’s final state and federal income tax returns and any required estate or fiduciary returns. Alabama does not currently impose a separate state estate tax, but you should confirm current rules and consult the IRS for federal matters: https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax. Keep records of payments and filings.
7. Distribute estate property and close the estate
After debts, taxes, and administrative expenses are paid, distribute the remaining assets according to the will or Alabama’s intestacy law. Prepare and file any closing documents the probate court requires. Ask the court to discharge the personal representative once administration is complete.
8. Handling property located in another state (ancillary probate and alternatives)
Real property (land and houses) is generally governed by the law of the state where the property is located. If your parent owned real property in another state, you will usually need to:
- Obtain a certified copy of the Alabama Letters Testamentary or Letters of Administration from the Alabama probate court.
- Contact the county recorder, land records office, or probate court in the other state to learn its requirements for transferring title to out-of-state personal representatives.
- Open an ancillary probate or submit the Alabama Letters and required documentation in the other state so that you can clear title and sell or transfer the property if needed. Some states allow limited procedures (e.g., affidavit to transfer small-value personal property) that avoid full ancillary administration.
Because state rules differ, you will often need a local attorney or title company in the state where the property sits to complete the transfer. The local attorney can also explain whether an ancillary probate is required or whether a simpler transfer path exists (for example, beneficiary deed, joint tenancy, small estate affidavit, or quiet title).
9. Practical tips on timing and cost
Probate timelines vary. A simple probate may close in a few months; a complex estate or one with disputes can take a year or longer. Costs include probate court fees, publication fees, bond premiums (if required), attorney fees, and costs for appraisals and accountants. Keep beneficiaries informed and keep detailed records to make closing smoother.
Helpful Hints — practical checklist and resources
- Start by locating the original will, the death certificate, and recent financial records.
- Make a list of assets and determine which pass outside probate (beneficiary designations, joint accounts, payable-on-death, transfer-on-death, etc.).
- Contact the probate court in the Alabama county where your parent lived. General court info: https://judicial.alabama.gov/.
- Obtain certified Letters from the Alabama probate court before attempting to deal with out-of-state real property.
- For real property in another state, contact that county’s recorder or probate office and consider hiring a local attorney to open ancillary probate or handle transfer requirements.
- Check whether a small-estate procedure applies — some states have simplified transfers for low-value estates (verify Alabama and the other state’s rules before relying on them).
- Keep careful, dated records of every step, payment, and distribution. You will need them for the court and to show beneficiaries what happened.
- If disputes arise among heirs or creditors, consider mediation or consulting an attorney sooner rather than later to avoid costly litigation.
- Use secure methods to transmit sensitive documents (court-certified copies, not originals) and only provide those documents to recognized institutions or counsel.
When to hire an attorney
Consider hiring an Alabama probate attorney if the estate is complex, if there are creditor claims or disputes among heirs, if tax issues arise, or if you are unsure about required filings. Hire an attorney in the state where the out-of-state property is located to handle ancillary probate or to clear title. If cost is a concern, some probate attorneys offer limited-scope services or flat-fee packages for common tasks.