Alabama’s summary distribution of a small estate is a streamlined probate process that lets heirs collect a deceased person’s personal property without a full administration, as long as the estate consists only of personal property worth no more than $37,075 (the limit in effect through February 28, 2026). You file a verified petition in probate court, publish notice, notify the Alabama Medicaid Agency, wait at least 30 days, and receive a court order authorizing distribution. It is faster and cheaper than standard probate, but it is still a court process with rules that must be followed in order.
Who Can Use Summary Distribution
Two conditions must both be met. The estate can include personal property only, and the total value of that personal property cannot exceed the small estate threshold. The State Treasurer adjusts that threshold each year for inflation based on the Consumer Price Index.1Alabama Department of Finance. Alabama Code 43-2-692 Small Estate Valuation Memorandum For March 1, 2025 through February 28, 2026, the ceiling is $37,075. Because the number resets each March, confirm the current figure with your county probate court before filing.
Under Alabama Code 43-2-691, the estate covers all personal property of a decedent who owned no real property at death, excluding anything whose title passes automatically by operation of law.2Alabama Legislature. Alabama Code 43-2-691 – Definitions If the decedent held any real estate in their name alone, summary distribution is not available at all.
Personal property that counts toward the threshold includes bank accounts titled solely in the decedent’s name, vehicles in the decedent’s name, household furnishings, and similar assets. Property that already passes outside probate does not count against the limit: jointly owned accounts with rights of survivorship, payable-on-death accounts, and life insurance payable to a named beneficiary all bypass the estate.
One point catches families off guard. Alabama does not recognize transfer-on-death deeds for real property. If the decedent owned a house or land, the only ways it can pass outside probate are joint ownership with rights of survivorship, a revocable living trust, or, in limited cases, an enhanced life estate deed. If real property does not pass by one of those methods, it stays in the decedent’s name at death and disqualifies the estate.
Filing the Petition
File in the probate court of the county where the decedent lived at death. The petition must be verified, meaning signed under oath, and no bond is required. If the decedent left a self-proved will, file it along with the petition.3Alabama Legislature. Alabama Code 43-2-692 – Petition for Summary Distribution
The statute lists what the petition must contain:3Alabama Legislature. Alabama Code 43-2-692 – Petition for Summary Distribution
- A statement that the decedent was domiciled in the state and in the county where the petition is filed.
- A statement that the estate qualifies as a small estate.
- A list of all personal property in the estate and its value.
- Confirmation that no petition to appoint a personal representative has been filed or granted.
- The name, address, age, mental capacity, and relationship to the decedent of the petitioner, every intestate heir, and every beneficiary named in any will.
- If a surviving spouse exists, a statement that the spouse is entitled to the estate. Otherwise, the names and shares of all heirs or will beneficiaries.
- A statement that all funeral expenses have been paid or arranged for, and that all known claims against the estate have been paid or arranged for.
Those last two items deserve emphasis. You cannot file while funeral costs or known debts remain unresolved, and the court will not grant distribution if obligations are still outstanding. Handle them first.
Attach a certified death certificate and documentation proving the decedent owned the listed assets. Filing fees vary by county. In Lee County, the fee for a summary distribution filing is $62.4Lee County Government. Court Costs If you cannot afford the fee, ask the court about a financial hardship waiver.
Required Notices
Two notices are mandatory after filing. Skipping either one prevents the court from entering a distribution order.
Newspaper Publication
Notice of the petition must be published once in a newspaper of general circulation in the county where the decedent lived. If there is no newspaper in the county, the notice must be posted at the courthouse for one week.3Alabama Legislature. Alabama Code 43-2-692 – Petition for Summary Distribution The court will not act on the petition until at least 30 days after publication.
Notice to the Alabama Medicaid Agency
The petitioner must notify the Alabama Medicaid Agency by certified mail, return receipt requested.5Alabama Legislature. Alabama Code 43-2-697 – Notice to Medicaid Agency The notice goes to the agency’s Estate Notice Office in Montgomery and must include the decedent’s full legal name, date of birth, date of death, Social Security number, marital status, and details about the probate proceeding. After mailing, file an affidavit of certified mailing with the probate court, along with a copy of the notice.
The agency then has 30 days from receipt to respond with a claim, a waiver, or a statement that no amount is due. If it does not respond within 30 days, its claim is automatically waived.5Alabama Legislature. Alabama Code 43-2-697 – Notice to Medicaid Agency If the decedent received Medicaid, the agency may seek to recover those costs from the estate. No distribution can happen until proof of this notice is on file with the court.
Reaching Heirs and Beneficiaries
The statute’s formal notice requirements center on publication and Medicaid, but you should also inform intestate heirs and any beneficiaries named in a will. Documenting your outreach protects against future disputes. A phone call or letter is far better than silence.
Getting the Court Order
The probate judge will not enter a summary distribution order until three conditions are met: at least 30 days have passed since publication, at least 30 days have passed since the Medicaid Agency received notice, and the court is satisfied that all statutory requirements are in place.3Alabama Legislature. Alabama Code 43-2-692 – Petition for Summary Distribution
Realistically, expect 30 to 45 days from filing to order, depending on how quickly the newspaper publishes and Medicaid responds. If anyone objects or the court sees problems with the petition, the judge may schedule a hearing and ask for more evidence. When everything is in order and no one objects, many courts approve the petition without a hearing.
Once approved, the judge enters an order specifying exactly what each person is to receive. The order is final and conclusive, and any appeal follows the same procedures used for other probate court decrees.6Alabama Legislature. Alabama Code 43-2-693 – Entry of Order Directing Summary Distribution
How the Assets Are Divided
If the decedent left a self-proved will, the assets go to the people named in it. If there is no will, Alabama’s intestacy rules control. The surviving spouse’s share depends on who else survives:7Alabama Legislature. Alabama Code 43-8-41 – Share of the Spouse
- No children or parents survive: the spouse takes the entire estate.
- No children, but one or both parents survive: the spouse takes the first $100,000 plus half the balance, and the parents split the rest.
- Children who are also children of the surviving spouse: the spouse takes the first $50,000 plus half the balance, and the children split the rest.
- Children from a different relationship: the spouse takes half, and the children split the other half.
In many small estates, the total value falls below these dollar thresholds, so the surviving spouse often ends up receiving everything regardless of category.
Collecting the Assets
The court order is legal authorization for banks, the Alabama Department of Revenue, and other holders to release assets to the named recipients.
For bank accounts, bring the certified court order and a certified death certificate to the institution. Some banks ask for additional identification or an affidavit of entitlement before releasing funds. If a teller is unfamiliar with small estate procedures, ask to speak with a manager.
For vehicles, the transfer works as an involuntary transfer by operation of law under Alabama Code 32-8-46. The heir submits the last certificate of title (if available), the court order as proof of the transfer, and an application for a new title through a designated agent. The department requires at least 35 days’ notice before completing certain involuntary transfers, so plan for that processing time.8Alabama Legislature. Alabama Code 32-8-46 – Transfer of Ownership by Operation of Law
For household furnishings and other tangible personal property, the court order itself is your proof of ownership. Keep a copy with any valuable items.
Final Tax Returns
Summary distribution does not remove the obligation to file the decedent’s final tax returns. Someone must file a final federal income tax return (Form 1040) covering income from January 1 through the date of death, on the same deadlines that would apply if the person were still alive.9Internal Revenue Service. Filing a Final Federal Tax Return for Someone Who Has Died
If the decedent was married, the surviving spouse can file jointly for the year of death, provided they do not remarry during that year.9Internal Revenue Service. Filing a Final Federal Tax Return for Someone Who Has Died If a refund is due and no court-appointed representative exists, include IRS Form 1310 (Statement of Person Claiming Refund Due a Deceased Taxpayer) with the return. A surviving spouse filing jointly does not need it. A final Alabama state income tax return is also required.
What Happens If a Creditor Shows Up Later
Unlike formal probate, summary distribution does not require a final accounting or judicial sign-off after assets are handed out. The trade-off is less protection for heirs if problems surface later.
If a creditor you did not know about comes forward after distribution, heirs who received assets can be personally responsible for the decedent’s debts up to the value of what they inherited. How long a creditor can wait depends on the debt. Open accounts like credit cards generally carry a three-year limitations period. Written contract debts carry six years. Contracts for the sale of goods carry four.
Protect yourself with records. Keep signed receipts from each heir and bank statements showing completed transfers. Make sure every known creditor was addressed before distributing. If the decedent’s financial picture was unclear, think carefully before spending inherited funds right away.