Disclaimer: This article is for informational purposes and does not constitute legal advice.
Detailed Answer
When a person dies owning real property solely in their name, that property typically becomes part of the probate estate so that creditors can be paid. Under Alabama law, you must follow these key steps:
- Obtain Letters of Administration or Testamentary. A personal representative (or executor) files a petition in the probate court of the county where the decedent lived. Once granted, the court issues official letters. See Ala. Code § 43A-3-270.
- Inventory and Appraisal. Within three months of appointment, the personal representative must inventory all estate assets, including real property, and obtain appraisals. See Ala. Code § 43A-3-370.
- Notify Creditors. Publish notice in a local newspaper and mail written notice to known creditors. Creditors generally have six months from publication to file claims. See Ala. Code § 43A-8-801.
- Petition to Sell Real Property. If the estate lacks sufficient cash to pay valid claims, the personal representative petitions the court to authorize a sale of real property. The court reviews the petition, serves notice on interested parties, and may hold a hearing. See Ala. Code § 43A-6-730.
- Conduct Public Sale and Confirm. The representative conducts a public auction or sale under court supervision. After the sale, the representative petitions the court to confirm the sale, which finalizes the transfer of title. See Ala. Code § 43A-6-736.
- Distribute Proceeds. The court-approved proceeds pay administrative costs, funeral expenses, and valid creditor claims in statutory priority. Any surplus passes to heirs or devisees under the will or Alabama intestacy law. See Ala. Code § 43A-8-930.
- Close the Estate. Finally, the personal representative files a final accounting with the probate court and petitions for discharge.
Helpful Hints
- Verify if any real property passed outside probate (joint tenancy, transfer-on-death deed, or trust).
- Identify homestead allowances and exempt property before seeking a sale.
- Maintain careful records of appraisals, notices, and court filings.
- Monitor creditor deadlines closely to avoid disallowed claims.
- Consider professional appraisal services for accurate valuations.
- Consult an attorney when title issues or family disputes complicate the sale.