When a person dies without a last will and testament — we call this “intestate” — Alabama imposes requirements on the administration of their estate that create extra hassle and expense.
By preparing your will, you avoid the following requirements and make it easier and cheaper to administer your estate.
1. Only an Alabama resident can probate
Only an Alabama resident can probate an intestate estate. Typically, the surviving spouse or adult child serves as administrator. However, if they’re not an Alabama resident, they must find a family member or friend who lives in Alabama who’s willing to shoulder the burden of opening and managing the estate. If they can’t find a volunteer, they’ll have to ask the County Administrator to manage it.
2. Limited time to petition
If surviving family members don’t move quickly and file a petition to open probate within the first40 days, the County Administrator may administer the estate. The administrator has a statutory right to open the estate in order to assure the estate’s creditors are paid and the statutory heirs receive their inheritance.
3. You must post a bond
Since the probate court is responsible for the distribution of an intestate estate, Alabama law requires the personal representative to obtain a bond to protect the court, creditors and heirs against misuse or theft of the estate’s cash and personal property by the personal administrator. However, most wills waive the bond requirement.
4. Document estate assets
The personal representative must file a detailed list, or “inventory,” of the estate’s assets, identifying the value of each item. This list must be filed at probate court and becomes public record.
5. You must get court permission to do almost anything
Since there’s no will giving the personal representative directions on how to distribute the estate, the probate court has the authority and obligation to oversee the distribution, and the court must authorize almost every transaction. Before the personal representative can sell the decedent’s home, pay creditors or distribute assets to heirs, the court must approve.
6. It costs more in fees
Since court approval must be sought for every significant transaction during the estate’s administration, it costs the personal representative – and the estate – more in attorney’s fees, court fees and accounting fees. With a will, this money would go to the heirs or beneficiaries. Even the personal representative is entitled to a fee for managing the estate. Under a will, many personal representatives waive this fee.
No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.
