Detailed Answer
When someone dies in Alabama, their estate enters probate. A crucial part of probate is notifying creditors and handling claims against the estate. The Alabama Probate Code sets strict timelines and methods. Below is a step-by-step overview under Alabama law.
1. Appointment of a Personal Representative
The court first appoints a personal representative (formerly known as executor). This individual receives Letters Testamentary or Letters of Administration. They gain authority to manage estate assets and pay debts.
2. Identifying and Listing Known Creditors
The personal representative reviews the decedent’s files, mail, bank statements, insurance policies and tax records. They prepare a list of known creditors, such as mortgagees, credit card companies, medical providers and utilities.
3. Direct Notice to Known Creditors
Within 60 days of appointment, the personal representative must send written notice to each known creditor. The notice informs them how and when to present claims. (See Ala. Code § 43-8-230.)
4. General Publication Notice
Alabama law also requires publication of a notice to creditors in a newspaper of general circulation in the county where probate occurs. The notice must run once a week for three successive weeks. Creditors gain at least six months from the first publication to file claims. (Ala. Code § 43-8-200.)
5. Claim Presentation Deadline
All creditors—known and unknown—must present their claims within six months of the date the notice first appears in the newspaper. Claims filed after this deadline are generally barred. (Ala. Code § 43-8-300.)
6. Reviewing and Approving Claims
The personal representative reviews each claim for validity, amount and supporting documentation. They may:
- Allow the claim and pay it from estate funds.
- Disallow or object to improper or inflated claims.
- Seek court approval for disputed claims.
7. Handling Disputed Claims
If a creditor’s claim is disallowed, the creditor has 30 days to file suit in the probate court. The court will hold a hearing and issue an order. If the creditor does not sue within 30 days, the claim remains barred.
8. Closing the Estate
After paying valid claims and expenses (administration, taxes, funeral costs), the personal representative distributes remaining assets to heirs or beneficiaries. They then file a final accounting and petition for discharge from further liability.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified probate attorney before taking action.
Helpful Hints
- Keep a detailed inventory of all incoming mail and statements.
- Send direct notices by certified mail to prove delivery dates.
- Publish in the county where the probate proceeding is filed.
- Track all publication dates to calculate the six-month deadline.
- Respond promptly to any creditor objections or suits.
- Retain copies of all notices, claims and court filings.