How to use this checklist
This checklist covers settling an Alabama estate from the first hours after death through final distribution. Not every step applies to every estate — smaller estates may skip the full probate process, and estates with trusts bypass much of this entirely. Work through it in order and consult an Alabama probate attorney for anything that isn't clear.
Phase 1 — Immediate steps (first 48–72 hours)
1
First 48–72 Hours
Days 1–3
Obtain the death certificateRequest multiple certified copies — typically 8–10. Banks, financial institutions, government agencies, and the probate court all require originals. Order extras; getting more later takes time.
Locate the willCheck home safes, filing cabinets, safety deposit boxes, and with the decedent's attorney. Alabama probate court also maintains a will registry.
Notify immediate family and beneficiariesAlabama law requires heirs to be notified once probate is opened. Better to handle this personally before the formal legal process begins.
Secure the propertyChange locks on the home if necessary. Secure vehicles, valuables, and financial documents. The executor has a legal duty to protect estate assets.
Contact the decedent's employerNotify HR of the death. Ask about any final paycheck, life insurance, pension benefits, or 401(k) with the employer.
Cancel immediate recurring obligationsPause or cancel subscriptions, memberships, and automatic payments that will continue to charge the estate. Do not close financial accounts yet.
Phase 2 — Opening the estate (first 30 days)
2
Opening Probate
Days 4–30
Determine if probate is requiredNot every Alabama estate requires full probate. Assets with named beneficiaries (life insurance, retirement accounts), jointly held assets, and assets in a living trust pass outside probate. See our guide: is probate required in Alabama?
Check if the estate qualifies for small estate proceduresAlabama estates under $25,000 may qualify for a small estate affidavit — a faster, simpler process that avoids full probate court.
File the will with the Alabama probate courtFile in the county where the decedent lived. In North Alabama this is typically Madison County, Limestone County, Morgan County, or Marshall County probate court. The filing fee varies by county.
Petition for Letters Testamentary (with a will) or Letters of Administration (without)Letters Testamentary give the executor legal authority to act on behalf of the estate — sign documents, access accounts, sell property. You cannot legally manage the estate without them.
Open an estate bank accountAll estate income and expenses flow through this account. Do not commingle estate funds with personal funds. Bring your Letters Testamentary to the bank — most require them before opening an estate account.
Get an EIN for the estateMost estates need a federal Employer Identification Number (EIN) to open a bank account and file estate tax returns. Apply free at IRS.gov — it takes minutes online.
Publish notice to creditorsAlabama law requires notice to creditors to be published in a local newspaper for three consecutive weeks. This starts the clock on the creditor claims period — six months from the date of first publication under Alabama Code § 43-2-61.
Notify known creditors directlyBeyond the newspaper notice, send written notice directly to known creditors including mortgage lenders, credit card companies, medical providers, and anyone the decedent owed money to.
Alabama creditor deadline: Creditors have six months from the date of first publication of notice — or five years from the date of death if no notice is published — to file claims against the estate. Publishing notice promptly starts this clock and protects the estate from late claims.
Phase 3 — Inventory and valuation (30–90 days)
3
Asset Inventory & Valuation
Days 30–90
Prepare a complete inventory of all assetsAlabama probate court requires a formal inventory filed within two months of appointment (Alabama Code § 43-2-310). Include real estate, vehicles, bank and investment accounts, personal property, business interests, and any money owed to the decedent.
Get date-of-death valuationsReal estate should be appraised by a licensed Alabama appraiser. Investment accounts are valued at the date-of-death closing price. These values determine the estate's tax basis and what beneficiaries inherit.
Contact financial institutionsBring Letters Testamentary to each bank, investment firm, and retirement account custodian. Freeze joint accounts if necessary, collect account balances, and begin the transfer or liquidation process.
Collect life insurance proceedsContact each life insurance company. Policies with named beneficiaries pay directly to those beneficiaries outside the estate — they do not go through probate. Policies payable to "the estate" are part of the probate estate.
Identify and collect debts owed to the decedentOutstanding loans, promissory notes, rent owed, or business receivables are estate assets. Document them and pursue collection as appropriate.
Continue paying necessary estate expensesMortgage payments, property insurance, utilities on estate property, and property taxes must continue to be paid from the estate account during administration. Failure to maintain property can create liability.
Phase 4 — Paying debts and taxes (3–9 months)
4
Debts, Claims & Taxes
Months 3–9
Review and pay valid creditor claimsAlabama law sets a priority order for paying claims. Administration expenses and funeral costs come first, then taxes, then other debts. Do not pay debts out of order — the executor can be personally liable for improper distributions.
Reject invalid or untimely claims in writingYou may reject claims you believe are invalid. The creditor then has 20 days to file suit. Consult an Alabama probate attorney before rejecting any significant claim.
File the decedent's final federal and state income tax returnsA final Form 1040 is due for the year of death (April 15 of the following year). Alabama state income tax return is also required. If the decedent had income in prior years not yet filed, those returns must be filed as well.
Determine if a federal estate tax return is requiredFor 2026, the federal estate tax exemption is $13.99 million per individual. Most Alabama estates do not owe federal estate tax. If the estate exceeds this threshold, Form 706 is due nine months after death.
Confirm Alabama has no state estate or inheritance taxAlabama does not impose a state estate tax or inheritance tax. Beneficiaries owe no Alabama tax on what they inherit. See our guide: does Alabama have an estate tax?
File an estate income tax return if needed (Form 1041)If the estate earns more than $600 in income during administration — interest, dividends, rent from estate property — a Form 1041 estate income tax return is required for each tax year the estate is open.
Do not distribute assets until all debts and taxes are paid. An executor who distributes assets to beneficiaries before satisfying creditor claims can be held personally liable for those unpaid debts. Wait until the creditor claims period has passed and all verified debts are resolved before making distributions.
Phase 5 — Distribution and closing (6–18 months)
5
Distribution & Closing
Months 6–18
Transfer real property to beneficiariesReal estate passes by deed recorded in the county where the property is located. In Alabama this requires a new deed (typically an executor's deed) recorded with the county probate court. A deed transfer tax applies.
Transfer vehicle titlesContact the Alabama Department of Revenue Motor Vehicle Division. You'll need a certified copy of the death certificate, Letters Testamentary, and the original title. Surviving spouses may have a simplified process.
Distribute remaining cash and personal property per the willDistribute assets according to the will's terms. If no will exists, distribute according to Alabama's intestate succession laws. Document every distribution with receipts signed by beneficiaries.
Get signed receipts from all beneficiariesEach beneficiary should sign a receipt acknowledging what they received. These receipts protect the executor and support the final accounting filed with the court.
File a final accounting with the Alabama probate courtThe final accounting lists all assets inventoried, all income received, all debts and expenses paid, and all distributions made. Alabama probate courts require this before closing the estate.
Petition to close the estateOnce the final accounting is approved, file a petition to close the estate and be discharged as executor. The court issues an order discharging the executor from further responsibility.
Close the estate bank accountAfter the court approves the final accounting and discharge, close the estate bank account. Keep copies of all estate records for at least three years in case of future tax inquiries.
How long does it take to settle an Alabama estate?
Most Alabama estates take between 9 and 18 months to settle from start to close. The Alabama creditor claims period alone — six months from publication of notice — sets the minimum timeline for most estates. Complex estates with real property in multiple counties, business interests, or disputed claims can take two to three years.
Alabama Estate Settlement Timeline
| Simple estate, no disputes | 9–12 months |
| Average estate with real property | 12–18 months |
| Complex estate or family disputes | 2–3+ years |
| Small estate affidavit (under $25k) | 4–8 weeks |
| Trust-based estate (no probate) | 3–6 months |
| Creditor claims period | 6 months from publication |
What if there is no will?
When someone dies without a will in Alabama (called dying "intestate"), the estate is distributed according to Alabama's intestate succession laws rather than the deceased's wishes. The probate process is largely the same — an administrator is appointed instead of an executor — but disputes among family members are more common and the distribution may not reflect what the deceased would have wanted.
See our full guide to Alabama intestate succession for the complete distribution rules.
Frequently asked questions
What is the first thing to do when settling an estate in Alabama?
+
The immediate priorities are obtaining certified copies of the death certificate (get 8–10), locating the will, and securing estate property. Within the first few weeks, file the will with the Alabama probate court in the county where the decedent lived and petition for Letters Testamentary to get the legal authority to manage the estate.
How long do creditors have to file claims against an Alabama estate?
+
Creditors have six months from the date of first publication of the notice to creditors to file claims. If no notice is published, creditors have up to five years from the date of death. Publishing notice promptly — and correctly — is one of the most important steps an executor can take to protect the estate and speed up settlement.
Do all Alabama estates have to go through probate?
+
No. Assets with named beneficiaries (life insurance, retirement accounts, payable-on-death bank accounts), jointly owned property with right of survivorship, and assets held in a living trust all pass outside probate. Estates under $25,000 may qualify for Alabama's small estate affidavit process. Only assets titled solely in the decedent's name and without a beneficiary designation typically require full probate.
Can an executor be paid in Alabama?
+
Yes. Alabama law allows executors to receive reasonable compensation for their services, paid from the estate before distribution to beneficiaries. The will may specify a fee, or the court may determine reasonable compensation based on the complexity of the estate and time involved. Executor fees are taxable income to the executor.
What happens if the estate doesn't have enough money to pay all debts?
+
Alabama law sets a priority order for paying debts when an estate is insolvent. Administration expenses and funeral costs come first, then taxes, then secured debts, then general unsecured creditors. Beneficiaries receive nothing if the estate is insolvent — debts do not pass to family members personally unless they co-signed or are jointly liable. An executor must follow this priority order exactly.
How much does it cost to settle an estate in Alabama?
+
Estate settlement costs in Alabama typically include probate court filing fees ($50–$200+), attorney fees (often 2–5% of the estate value), appraiser fees for real property, publication costs for creditor notice ($150–$300), and executor compensation. Total costs for a modest North Alabama estate commonly run $3,000–$8,000, with larger or disputed estates costing significantly more. See our full breakdown at how much does probate cost in Alabama.