Estate Planning in Alabama: A Complete Guide

Does Alabama have a state estate tax?

No — Alabama has no state estate tax. The federal estate tax applies only to estates exceeding $13.61 million per individual (2024). Most Alabama families have no estate tax exposure.

How long does probate take in Alabama?

Alabama probate typically takes 6–12 months, filed in the Probate Court of the county where the deceased lived. Estates under $25,000 can use a simplified small estate affidavit and avoid the full probate process.

Can Alabama residents avoid probate with a living trust?

Yes — a revocable living trust is the most effective way to avoid probate in Alabama. Assets held in trust pass directly to beneficiaries without court involvement. Transfer-on-death deeds for real property also avoid probate.

What is Alabama's Medicaid estate recovery policy?

Alabama aggressively recovers long-term care costs from estates. If Medicaid paid for nursing home care, Alabama will file a claim against the estate. Proper planning with an elder law attorney can protect assets through trusts and other strategies.

What happens to my property in Alabama if I die without a will?

Under Alabama's intestate succession laws, your property is divided among your spouse and children (or parents/siblings if no spouse or children survive). Alabama follows a common law property system, so all assets in your individual name pass through probate unless held in joint tenancy or a transfer-on-death deed. Without a will, you lose control over who inherits and the court will appoint an administrator, which typically costs more and takes longer than if you had named an executor in a will.

Do I need probate for all my assets in Alabama?

No — only assets held solely in your individual name and exceeding $25,000 require full probate in Alabama. Assets jointly owned with right of survivorship, those in a revocable living trust, held in transfer-on-death deeds, or with named beneficiaries (life insurance, retirement accounts) bypass probate entirely. If your individual assets total $25,000 or less, your heirs can use a simplified small estate affidavit instead of formal probate.

Can Alabama Medicaid recover costs from my home after I die?

Yes — Alabama's Medicaid estate recovery program can place a lien on your home and seek repayment from your estate for long-term care costs paid by Medicaid. However, Alabama law protects your primary residence if a spouse, disabled child, or child under 21 still lives there. Planning with an elder law attorney—such as using an irrevocable trust or a life estate deed—can shield your home from Medicaid recovery before you apply for benefits.