Detailed Answer
Under Alabama law, a personal representative (executor or administrator) may sell estate personal property to cover debts and expenses or to equalize distributions among heirs. The process generally follows these steps:
- Inventory and Appraisal: The representative prepares a detailed inventory and obtains appraisals of all personal property under Ala. Code § 43A-8-9.
- Heir Agreement: Heirs can agree to select specific items and share or sell the remainder. This voluntary partition avoids formal court sale and cuts costs. See Ala. Code § 43A-8-160.
- Court-Authorized Public Auction: If heirs don’t agree or if cash is needed, the representative petitions the probate court for permission to auction property. After notice to heirs and creditors, the court orders a public auction. The auction proceeds first pay funeral costs, administration fees, debts, and taxes.
- Private Sale with Confirmation: The representative may negotiate a private sale when market conditions justify it. Alabama law requires court confirmation of private sales to ensure fair value under Ala. Code § 43A-8-172.
- Division by Lot or Other Method: The court may order division of personal property by lot or other equitable means. After dividing items, it authorizes sale of the leftovers and distribution of proceeds.
Once the sale concludes, the representative files a report with the court. Remaining funds—after paying expenses, debts, and taxes—distribute equally among heirs.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for advice regarding your specific situation.
Helpful Hints
- Begin with a complete inventory and professional appraisals to set fair sale values.
- Provide all heirs and creditors with proper written notice before any sale.
- Encourage heirs to reach a written agreement to avoid lengthy court proceedings.
- Keep clear records of sale notices, bids, and disbursement of proceeds.
- Check local probate court rules for specific procedural requirements in your county.