Detailed answer — step-by-step process

This section explains the usual administrative and legal steps a personal representative follows in Alabama to distribute remaining estate funds to the decedent’s children. It assumes all taxes, valid creditor claims, and estate expenses have been calculated and paid or reserved for.

1. Confirm who gets the estate: will vs. intestacy

If the decedent left a valid will, the will controls who receives the estate. The personal representative follows the will’s distribution instructions, subject to any successful creditor claims or valid challenges. If there is no valid will, Alabama’s descent and distribution statutes determine heirs and shares. See Title 43 (Probate) of the Code of Alabama, Chapter 8 on descent and distribution for the statutory rules: Code of Alabama (Title 43).

2. Final accounting and affidavit of payments/reserves

The personal representative prepares a final estate accounting that shows all receipts, disbursements, taxes paid, creditor claims allowed, attorney and executor fees, and any reserves kept for contingent claims. The accounting supports a petition (or motion) to the probate court for approval of the account and for distribution of the remaining assets.

3. Petition the probate court for an order of distribution

The representative files a petition or returns the final account in the probate court that opened the estate. The petition asks the court to approve the accounting and to enter an order directing distribution of the remaining cash and property to the beneficiaries (the decedent’s children). The court reviews notices, creditor claim resolution, and the accounting before entering the order.

4. Obtain court approval and distribution order

When the court signs an order approving the accounting and directing distribution, that order gives the representative legal authority to transfer funds and property. For many banks, brokerage firms, and title companies, the probate order (sometimes with receipts or releases signed by beneficiaries) is sufficient to effect transfers.

5. Make distributions and obtain receipts/releases

The representative distributes cash or converts estate property as needed to pay legacies or divide proceeds among children. The representative should obtain signed receipts, releases, or waiver forms from each child showing they received their share. These documents protect the personal representative from future claims.

6. Transfer titles and complete administrative tasks

For real estate, vehicles, or securities, follow the steps required to retitle ownership: record a deed for real property transfers, submit required forms to the motor vehicle department for a vehicle, and instruct brokers to transfer or liquidate securities. If children receive property in-kind rather than cash, document values and the agreement in the estate file and court record.

7. Close the estate

After distribution and court approval, the personal representative files any final forms required by the probate court (a closing statement or petition for discharge). Once the court discharges the representative, their duties generally end.

How Alabama law applies

Alabama probate law and intestacy rules are contained in Title 43 of the Code of Alabama. Procedures for administration and distribution are governed by state probate practice and local probate court rules. For the statutes that govern descent and distribution, see the probate title here: Code of Alabama — Title 43 (Probate). If you need a specific section (for example, intestate shares), consult the descent and distribution chapters in that title or speak with the probate clerk for links to exact code sections and local rules.

Special situations and practical concerns

Minor or incapacitated children

If a child beneficiary is a minor or legally incapacitated, the personal representative cannot simply hand over funds. The representative may need to deposit the child’s share in a blocked account, open a custodial account (UTMA/UGMA) if available and suitable, or ask the court to appoint a guardian or conservator. Procedures vary by county and the value involved.

Disputed claims or beneficiary contests

If a creditor’s claim or a beneficiary’s challenge remains unresolved, the representative must either keep reserves sufficient to satisfy potential liability or get court instructions before distributing the remaining funds. Distributing too early can expose the representative to personal liability.

Small estate alternatives

Alabama law provides simplified procedures for small estates in some circumstances. Where available, a small-estate affidavit or other summary procedure may allow transfer of certain personal property without full administration. Because statutory thresholds and requirements change, check the probate court or an attorney for current small-estate rules.

Federal and state taxes

Alabama does not currently impose a separate state estate tax, but large estates may be subject to federal estate tax and the estate must file federal estate tax returns if the estate exceeds federal thresholds. The estate also must file the decedent’s final income tax returns (federal and Alabama) and any required fiduciary income tax returns. Reserving funds for tax liabilities before distribution is essential.

Typical timeline

Exact timing depends on complexity, creditor claim deadlines, and tax filings. Commonly:

• Initial administration and creditor notice period: several months.
• Resolution of claims and taxes: 6–18 months for many estates.
• Distribution and closing: after court approval of final accounting — could be within a few weeks of approval or longer if titles must be cleared.

Helpful hints

• Keep organized records: bank statements, bills paid, tax returns, receipts, and an itemized accounting of every transaction.
• Communicate with beneficiaries: explain timing, expected distributions, and any reserves for taxes or claims to reduce surprises and disputes.
• Don’t distribute until creditor claims and taxes are resolved or sufficiently reserved — premature distribution can create personal liability for the representative.
• If beneficiaries include minors or protected adults, check court requirements for guardianship or custodial accounts before paying out any money.
• Ask the probate clerk for local forms and procedural steps used by the county court processing the estate. Local practice can affect what paperwork is needed to finish distribution.
• Consider hiring a probate attorney when the estate is complex, when there are contested claims, or when large tax issues exist.
• If there is no will, consult Alabama’s descent and distribution statutes in Title 43 before assuming equal shares—family circumstances and prior marriages can change shares.