Probate Law in Birmingham, AL
What Is a Probate Law?
A probate is a legal process that determines the validity and administration of a last will and testament. When an individual leaves behind assets, the court appoints an executor (if one is not named in the will). In either case, the appointed official collects all remaining assets, pays off any remaining liabilities, and disperses the remaining assets to beneficiaries listed in the will or to beneficiaries designated by the executor (if no will is present), all according to Birmingham, Alabama probate law.
How Does Birmingham, Alabama Probate Law and the Probate Process Work?
Locating the Will
The first step is determining whether a will even exists. In most cases, the decedent leaves clear direction regarding the location of the last will and testament or files one with a primary attorney. However, sometimes people have to go digging for one. In other cases, there is no will and the Birmingham court-appointed executor must handle all assets.
It is also possible that the deceased created a living trust instead. A living trust is a document that places all assets into a trust and that transfers them to a designated trustee upon death. Living trusts do not require any probation or courts. For this reason, many parties elect to go this route for the sake of convenience and avoiding drawn-out Birmingham, AL court battles.
In Birmingham, the Probate Court is considered a court of limited jurisdiction and handles wills, estates, real property, mental illness, and adoption. If the deceased lived in Birmingham, the estate will be probated through the Birmingham Division of the Jefferson County Probate Court.
Notifying the Court
Notifying the court to open the estate is the next step. The Birmingham, Alabama probate law court clerk can handle this step, unless there is a named executor.
After the court receives notification, a scheduled hearing takes place. This officiates the executor appointee and grants him or her legal authority to operate on behalf of the last will and testament.
If there is no will and no designated executor, the court chooses the executor. Making this selection differs from state to state, but generally, the surviving spouse is first in line. After that, any adult children, parents, or siblings receive consideration.
Consolidating Assets
The executor must identify the decedent’s remaining assets. To do this, she or he reviews any related banking or financial documents and any other personal documents that could lead them toward recovering assets. Some examples of documents to collect are insurance records, titles, stock portfolios, and tax returns or filings.
To freeze and later close accounts, the executor must notify any financial institutions with outstanding accounts of the individual’s death in Birmingham. If there are any physical valuables in the decedent’s property, it is not uncommon for the executor to collect these items to prevent theft or damage.
The executor then determines the valuation of each item of the estate. This can be a lengthy process depending on the ease of locating all assets, including real estate, stocks, bonds, etc. Notifying creditors is the next step.
Notifying Creditors
Generally, the executor notifies creditors associated with the estate so they can make a claim if they have outstanding balances. Creditors have a specific time frame in which to file a claim, and this window can vary depending on state law.
The Jefferson County Probate Court issues Letters of Administration or Testamentary to the executor, granting them authority to administer the Birmingham estate. The executor must give notice to the creditors within 30 days from the grant of Letters. Additionally, the issuance of Letters begins the statutory 6-month period in which claims may be filed against the Birmingham estate.
Squaring Away Final Payments
The executor pays any funeral expenses (unless the family covers them) and any debts or taxes from the estate. The executor determines which creditor claims are accurate. From there, the executor squares away any outstanding debts to clear the estate of all obligations before being dispersed according to the will.
Proceeding With the Court
After valuing all the decedent’s assets and paying all outstanding debts, the executor submits a report detailing all estate spending to the Birmingham, Alabama courts. At this point, a judge reviews the materials. Assuming everything was done correctly, they render a decision to clear the executor to move forward with the final step.
Executing the Last Will and Testament
At this point, the executor disperses the assets to the designated beneficiaries laid out in the will. Depending on how detailed the will is, this could either be a simple process or it may divide the remaining family. A Birmingham probate law attorney can help you or a loved one avoid these costly mistakes and counsel you on the best course in the event of a family estate battle.
If the deceased lived in Birmingham, the executor must execute the Will at the Jefferson County Courthouse in Birmingham. Once the Jefferson County Probate Court confirms the executor, the executor must take inventory of the estate within 2 months. Probate bonds are then required by the Court. These bonds guarantee that all estate debts will be satisfied and that the remaining assets will be properly distributed to the appropriate heirs.
The notice to file claims must be published and all creditors and heirs notified. The estate cannot be divided until all claims and expenses such as taxes have been paid. This process may involve selling or exercising stock options. As well, the Court must approve all executor’s fees. Finally, a Birmingham Will must be filed for probate within five years of the date of the testator’s death.
If there is no last will and testament, the executor assigns beneficiaries in accordance with Alabama state laws. Generally speaking, the surviving spouse is first in line to receive any remaining assets. After that, the decedent’s children come next. Any surviving siblings would be next. From there, the executor works down through the surviving family based on their direct relationship.
Is Probate Law Necessary?
No. There are alternatives to probating a will, but this really depends on the circumstances surrounding the decedent. For example, the deceased may have established a living trust that circumvents the probate process. The individual may have not owned any assets, thus simplifying the Alabama process.
If the value of the Birmingham estate is not more than $25,000, then the Small Estates Act allows for the heir to receive the assets without full probate administration. However, all expenses must be paid, and notice of the filing of the petition for summary distribution must be published. you can post the notice at the Jefferson County Courthouse in Birmingham for one week. Alternatively, you can publish a notice once a week in a Jefferson County newspaper.
What Are the Differences Between a Living Trust and a Will?
Living trusts are a way to avoid probation. However, this is one of the primary differences between a living trust and a will. Another main difference is that a living trust is only as good as the assets therein. This means that if you pass away without funding the trust with your assets, it is practically worthless. On the other hand, you do not have to fund a will, as you merely choose where to transfer your assets upon your death.
Setting up where your assets go after you die is an important decision. This is why you should consult with a Birmingham probate law attorney to make the correct decision.
Work With an Experienced Local Probate Law Attorney In Birmingham, Alabama
Probate law attorneys assist with valuing your total assets and can provide insight into what the best move would be for you. Are you in need of a Birmingham probate law attorney who can help you and preserve the future of your family? We can even help you connect with an attorney across Alabama state lines.
Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced probate law lawyer in your area!
