How Much Does It Cost to Probate a Will in Alabama?
Probating a will in Alabama has no single price. The cost is the sum of a few parts: court fees, a newspaper notice to creditors, any bond premium and appraisals, and the lawyer's and accountant's fees. The executor can also take pay, which Alabama caps for ordinary services at 2.5 percent of the property received plus 2.5 percent of the money paid out (Ala. Code § 43-2-848). The estate generally pays these costs.
What the estate owns, and how much work it takes to settle, drive the total. For the timeline, see how long probate takes in Alabama; for how we help, see our probate work for executors.
Probate court fees and copies of letters
To open the estate, the executor files the will and a petition asking the probate court to admit it and issue letters testamentary, the court document that gives the executor power to act. In Alabama the executor is called the personal representative. The court charges fees to open the estate and for later filings and copies. State law and local acts set them, and they change, so ask the probate clerk in Madison County, or wherever the estate is opened, for current amounts.
Banks, brokerages and title companies usually each want a certified copy of your letters. The state's base fee to probate a will includes three certified copies, and the court charges for each extra one (§ 12-19-90(a)(1), (5)).
Notice to creditors in the newspaper
Within 30 days after letters are granted, the personal representative must start publishing a notice to creditors, once a week for three successive weeks, in a newspaper of general circulation in the county (§§ 43-2-60, 43-2-61). The newspaper charges for it.
When the estate closes, a formal settlement in court generally brings three more weeks of newspaper notice (§ 43-2-505). A court-approved consent settlement does not. For that, every beneficiary must be a competent adult or have an Alabama court-appointed guardian with no conflicting interest in the settlement. Each adult or guardian must sign a notarized consent, and all debts and charges must be paid (§ 43-2-506).
Probate bond, and why many wills waive it
A probate bond is a promise, usually backed by a surety company, to make good any loss if the personal representative mishandles the estate. The amount is generally the value of the property the personal representative controls plus a year's estimated income, leaving out land that cannot be sold without a court order (§ 43-2-851(a)). The surety company charges a premium, usually for each year the estate is open, and reasonable premiums are an estate expense (§ 43-2-502).
A will can expressly excuse the personal representative from giving bond, and many do. The court can still require one if an interested person files an affidavit alleging their interest is endangered, or if the estate is likely to be wasted (§ 43-2-851(c)).
Appraisals and the inventory
The personal representative files an inventory listing the estate's property at its value at death, unless the will expressly excuses filing it and the court does not require it (§ 43-2-835). A house, land or a business interest may need a professional appraisal, paid by the estate (§ 43-2-843(17)). It also documents the value at death, which generally becomes the beneficiaries' tax basis (26 U.S.C. § 1014).
Executor fees in Alabama
An executor in Alabama is entitled to reasonable compensation, subject to the court's approval. For ordinary services it cannot exceed 2.5 percent of the property the personal representative receives and controls, plus 2.5 percent of all disbursements. The court may allow more for extraordinary services (§ 43-2-848(a), (b)).
Paying it takes court approval unless the will expressly allows it (§ 43-2-844(7)). It is taxable income to the executor (IRS Publication 559). Family executors often waive it, and the statute allows that (§ 43-2-848(c)).
Probate attorney fees in Alabama
Alabama sets no percentage or schedule for a probate lawyer's fee. The personal representative hires the lawyer (§ 43-2-843(17)), the estate pays the fee, and the court can fix and allow it at a settlement (§ 43-2-682). Any interested person can ask the court to review whether a fee is reasonable (§ 43-2-850). The work drives the fee: the filings and deadlines, real estate, a business, taxes and how well the family agrees.
Accountant fees and tax returns
The personal representative files the decedent's required final income tax returns (26 U.S.C. § 6012(b)(1)). The estate may also need its own federal and Alabama income tax returns (26 U.S.C. § 6012(a)(3); § 40-18-29). A federal estate tax return is needed when everything the decedent owned plus taxable lifetime gifts exceeds the exclusion for the year of death, or to pass a deceased spouse's unused exclusion to the survivor, an election called portability. Alabama does not currently collect an estate tax (§ 40-15-2). We coordinate with your CPA on these returns.
What a house sale adds to probate costs
Without a power of sale in the will, the probate court must approve the sale first, which adds a petition and an order (§ 43-2-844(1), (6)). The agent's commission and closing costs come out of the sale proceeds. Until it sells, the house still needs insurance and property taxes, which the personal representative may pay from estate funds (§ 43-2-843(10), (13)). Repairs need court approval first unless the will expressly allows them (§ 43-2-844(2)).
We confirm whether the will's power of sale or a court order applies before the house is listed. When the sale needs court approval, we handle the legal and court work: the petition, the order and the personal representative's deed or other court paperwork. You, your realtor and the closing attorney or title company handle the listing, title search, prorations and closing.
What makes probate cost more
A will contest or a lawsuit over a claim. Litigation adds lawyers and court time. A personal representative who brings or defends a case in good faith is entitled to reasonable attorneys' fees from the estate (§ 43-2-849). We do not take contested matters as new cases; if one arises, we help you bring in litigation counsel.
A minor beneficiary. At a formal settlement, the court must appoint a lawyer, called a guardian ad litem, to represent the child (§ 43-2-504).
More debts than assets. The personal representative must report the estate insolvent (§ 43-2-701), which starts a separate court process.
Property in another state. It often needs its own probate there, called ancillary probate, handled by a lawyer licensed in that state.
Time. Each extra year can add a bond premium, tax returns and upkeep.
How to keep probate costs down
Read the will for a bond waiver, an inventory waiver and a power of sale.
Gather statements, deeds, policies and recent tax returns early.
Run every dollar through the estate account and keep every receipt.
Keep the beneficiaries informed, so they are ready to sign consents at the end.
Probate vs. a living trust: which costs less?
For your own plan, a funded revocable living trust moves much of the cost from after death to now. Property the trust owns passes without a probate case, so there is no court filing, newspaper notice or probate bond for it. But the trust costs more to set up, your home must be deeded into it, and your successor trustee still has work, and costs, at your death. See how a funded trust avoids probate in Alabama, or read about our living trust planning.
Questions about probate costs in Alabama
Who pays probate costs, the executor or the estate? Generally the estate. Alabama law ranks funeral expenses, then administration costs, ahead of the decedent's other debts (§ 43-2-371). Before paying an estate cost yourself, ask your lawyer and keep the receipt. Repayment depends on the cost being proper and the estate having enough.
Is a probate lawyer's fee a percentage of the estate in Alabama? Not by law. Alabama sets no required percentage; any fee must be reasonable, and the court can review it (§§ 43-2-682, 43-2-850).
How much can an executor charge in Alabama? Reasonable pay, subject to the court's approval, up to 2.5 percent of the property received plus 2.5 percent of disbursements for ordinary services. The court can allow more for extraordinary services, and the will or a written agreement with all affected beneficiaries can set a different amount (§ 43-2-848).
Talk with a Huntsville probate lawyer
Named executor in a loved one's will? Schedule a consultation with Ty Shepard. He handles probate for executors in Huntsville and North Alabama and can walk you through the costs the estate is likely to carry. See also what an executor does, step by step.
If you are planning your own estate, Sarah S. Shepard can help you decide whether a will is enough or a living trust belongs in your plan.
Ty Shepard is a probate and trust administration attorney at Sparkman, Shepard & Shepard, LLC in Huntsville, admitted to the Alabama State Bar in 2012, with an LL.M. in Taxation. He represents executors named in a will and advises successor trustees in Huntsville and North Alabama. More about Ty Shepard.