Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
When someone dies in Alabama, the appointed personal representative (executor or administrator) must follow specific steps to locate, inventory, distribute estate assets, and settle debts under Alabama law.
1. Obtain Appointment
File the decedent’s will (if one exists) with the local probate court. The court issues Letters Testamentary (for a valid will) or Letters of Administration (if no will). These letters grant legal authority to act. See Ala. Code § 43-8-49.
2. Notify Heirs and Interested Parties
Within a short period after appointment, notify all heirs, beneficiaries, and known creditors. This step ensures transparency and allows creditors to submit claims. See Ala. Code § 43-8-55.
3. Locate and Secure Assets
Identify all estate assets: bank and investment accounts, real estate, vehicles, personal property, digital accounts, and business interests. Secure physical property by changing locks or arranging storage.
4. Inventory and Appraisement
Within three months of appointment, file a complete inventory and appraisement listing each asset’s description, location, and fair market value. The court reviews and approves this report. See Ala. Code § 43-8-73.
5. Notify Creditors and Pay Debts
Publish a notice to creditors in a local newspaper and send written notices to known creditors. Creditors generally have six months from notice (or one year from death if no notice) to file claims. Review each claim, object to invalid ones, and pay valid debts, funeral expenses, and administrative costs from estate funds. See Ala. Code § 43-2-360.
6. Distribute Remaining Assets
After debts and administrative expenses are paid, distribute remaining assets according to the will or, if there is no will, under Alabama’s intestacy laws. Obtain court approval for the distribution plan before transferring title or funds. See Ala. Code § 43-8-240.
7. Final Account and Discharge
Prepare and file a final accounting with the court, detailing all estate receipts, disbursements, and distributions. Once the court approves, the personal representative receives a discharge, officially closing the estate. See Ala. Code § 43-8-220.
Helpful Hints
- Keep organized, dated records for every transaction.
- Communicate regularly with heirs and beneficiaries to reduce conflicts.
- Use a professional appraiser for high-value real estate, art, or collectibles.
- Monitor court deadlines closely to avoid delays or penalties.
- Consider consulting a probate attorney for complex estates or tax issues.
- Secure digital assets and update or close online accounts promptly.