Detailed Answer
When a person dies in Alabama and their personal property subject to administration is valued at $100,000 or less, heirs can collect assets without formal probate by using a Small Estate Affidavit under Ala. Code § 43-2-380. This process speeds distribution, cuts costs and simplifies transfer.
1. Confirm Eligibility
- Value limit: Total personal property (excluding the homestead) must not exceed $100,000. See Ala. Code § 43-2-380.
- Waiting period: At least 30 days after date of death.
- No pending probate: No application for administration filed in Alabama or any other state.
- Heir representation: Affiant must be the surviving spouse or a person entitled to inherit.
2. Prepare the Small Estate Affidavit
- Obtain an official death certificate.
- List all personal property subject to administration with estimated values.
- Identify heirs and proposed distribution shares (following will terms or intestate rules if no will).
- Include a sworn statement that no probate application exists and all facts are true.
- Execute the affidavit before a notary public.
3. File and Distribute Assets
- Present the notarized affidavit and death certificate to each custodian (banks, brokerage firms, insurance companies).
- Custodians can rely on the affidavit to release assets without a court order.
- Distribute funds or personal property according to the shares detailed in the affidavit.
- Retain copies of receipts and releases from custodians for your records.
Distributing to Heirs
If the decedent left a valid will, follow its terms. If there is no will, distribute under Alabama’s intestate succession rules, such as:
- Surviving spouse receives the entire estate if there are no descendants or parents.
- If children exist and no surviving parents, spouse receives the first $50,000 plus one-half of the remaining estate; descendants share the rest. See Ala. Code § 43-8-1 et seq..
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice on your specific situation.
Helpful Hints
- Gather asset values conservatively to avoid exceeding the $100,000 limit.
- Verify that no probate filings exist to prevent affidavit rejection.
- Obtain original receipts or releases from each custodian.
- Document heir agreements clearly to avoid disputes.
- Consult an attorney if real property or complex assets are involved.