Alabama 2025 Regular Session

Alabama House Bill HB164 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 HB164INTRODUCED
22 Page 0
33 HB164
44 J5XKYYF-1
55 By Representative Faulkner
66 RFD: Judiciary
77 First Read: 04-Feb-25
88 1
99 2
1010 3
1111 4
1212 5 J5XKYYF-1 02/03/2025 TRP (L)bm 2025-182
1313 Page 1
1414 First Read: 04-Feb-25
1515 SYNOPSIS:
1616 Under existing law, the Alabama Small Estates
1717 Act allows the surviving spouse or other distributee of
1818 a decedent, who owns no real property at the time of
1919 death, to receive in a summary manner the decedent's
2020 personal property, provided the value of this
2121 personalty is not in excess of $25,000, or such
2222 adjustments to that amount as made on an annual basis
2323 by the State Finance Director based on changes in the
2424 Consumer Price Index.
2525 This bill would raise the threshold amount
2626 distributable under the Small Estates Act to the
2727 combined maximum amount, as adjusted from time to time
2828 based on the Consumer Price Index, as allowed under the
2929 homestead allowance, exempt property, and family
3030 allowance, which is currently adjusted to $47,000.
3131 This bill would streamline the procedure for
3232 both claiming exemptions and allowances in a small
3333 estate and for settling the small estate.
3434 This bill would further clarify who is a
3535 surviving spouse under an intestate estate when there
3636 is a divorce, annulment, or separation.
3737 This bill would also expressly permit summary
3838 distributions of small estates under the Probate code.
3939 1
4040 2
4141 3
4242 4
4343 5
4444 6
4545 7
4646 8
4747 9
4848 10
4949 11
5050 12
5151 13
5252 14
5353 15
5454 16
5555 17
5656 18
5757 19
5858 20
5959 21
6060 22
6161 23
6262 24
6363 25
6464 26
6565 27
6666 28 HB164 INTRODUCED
6767 Page 2
6868 A BILL
6969 TO BE ENTITLED
7070 AN ACT
7171 Relating to the Alabama Small Estates Act; to amend
7272 Sections 43-2-690, 43-2-691, 43-2-692, 43-2-693, 43-2-694,
7373 43-2-695, 43-2-696, 43-8-40, and 43-8-252, Code of Alabama
7474 1975; to further provide for the summary distribution of the
7575 sum of a decedent's estate which contains personal property
7676 valued at a certain maximum amount with authorized adjustments
7777 allowed based on the Consumer Price Index, which includes the
7878 homestead allowance, exempt property, and family allowance as
7979 adjusted; and to add Sections 43-2-691.1, 43-2-697, 43-2-698,
8080 and 43-8-23 to the Code of Alabama 1975, to specify that the
8181 probate court has jurisdiction to manage these small estates
8282 under a modified and streamlined small estate distribution
8383 process.
8484 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
8585 Section 1. Sections 43-2-690, 43-2-691, 43-2-692,
8686 43-2-693, 43-2-694, 43-2-695, 43-2-696, 43-8-40, and 43-8-252,
8787 Code of Alabama 1975, are amended to read as follows:
8888 "§43-2-690
8989 This division shall be known as the " Revised Alabama
9090 Small Estates Act."
9191 "§43-2-691
9292 For the purposes of this division, the following words
9393 29
9494 30
9595 31
9696 32
9797 33
9898 34
9999 35
100100 36
101101 37
102102 38
103103 39
104104 40
105105 41
106106 42
107107 43
108108 44
109109 45
110110 46
111111 47
112112 48
113113 49
114114 50
115115 51
116116 52
117117 53
118118 54
119119 55
120120 56 HB164 INTRODUCED
121121 Page 3
122122 For the purposes of this division, the following words
123123 and phrases shall have the following meanings respectively
124124 ascribed to them by this section :
125125 (1) DEVISEES. The persons who are entitled to the
126126 personal property of a decedent under the terms of a
127127 testamentary disposition.
128128 (1) DECEDENT. A deceased person whose estate is subject
129129 to summary distribution under this division.
130130 (2) DISTRIBUTEES. The persons who are entitled to the
131131 personal property of a decedent under the terms of a
132132 testamentary disposition or under the Alabama descent and
133133 distribution statutes.
134134 (3)(2) ESTATE. All the personal property of a decedent
135135 who owns no real property at the time of his or her death for
136136 which title does not pass by operation of law.
137137 (4) HEIRS. The persons who are entitled to the personal
138138 property of a decedent under the Alabama descent and
139139 distribution statutes.
140140 (5)(3) PERSON. The term includes natural persons and
141141 corporations.A natural person, corporation, organization,
142142 other legal entity, or any trust or trustee.
143143 (6)(4) PERSONAL REPRESENTATIVE. The term includes an An
144144 executor, administrator, administrator with the will annexed,
145145 and special administrator , and successor personal
146146 representative.
147147 (5) SELF-PROVED WILL. A will that is self-proved in
148148 accordance with either Section 43-8-132 or 43-8-133.
149149 (6) SMALL ESTATE. An estate having a value that does
150150 not exceed the small estate amount.
151151 57
152152 58
153153 59
154154 60
155155 61
156156 62
157157 63
158158 64
159159 65
160160 66
161161 67
162162 68
163163 69
164164 70
165165 71
166166 72
167167 73
168168 74
169169 75
170170 76
171171 77
172172 78
173173 79
174174 80
175175 81
176176 82
177177 83
178178 84 HB164 INTRODUCED
179179 Page 4
180180 not exceed the small estate amount.
181181 (7) SMALL ESTATE AMOUNT. The sum as adjusted from time
182182 to time based on the Consumer Price Index formula set forth in
183183 Section 43-8-116 of the homestead allowance under Section
184184 43-8-110, exempt property under Section 43-8-111, and the
185185 family allowance under Sections 43-8-112 and 43-8-113.
186186 (8) SUMMARY DISTRIBUTION. The procedure provided in
187187 this division to distribute the small estate of a decedent
188188 without the appointment of a personal representative.
189189 (9) SURVIVING SPOUSE. The spouse of the decedent at the
190190 time of decedent's death, provided the spouse is a surviving
191191 spouse under Section 43-8-252 and is not an individual
192192 claiming to be a spouse under common law, whether or not such
193193 common law marriage allegedly occurred before or after January
194194 1, 2017."
195195 "§43-2-692
196196 (a) The surviving spouse, if there is one, otherwise
197197 the distributees of an estate of personal property only, may
198198 initiate a proceeding for summary distribution of the estate
199199 by filing a verified petition in the office of the judge of
200200 probate of the county in which the decedent was domiciled at
201201 death alleging the conditions provided in subsection (b). The
202202 petition shall include a description of the estate of the
203203 decedent. No bond shall be required to be filed with the
204204 petition.
205205 (a) A person, or a person duly authorized to act for
206206 the person, entitled to an interest in a small estate under
207207 this division may initiate a proceeding for summary
208208 distribution of the estate by filing a verified petition in
209209 85
210210 86
211211 87
212212 88
213213 89
214214 90
215215 91
216216 92
217217 93
218218 94
219219 95
220220 96
221221 97
222222 98
223223 99
224224 100
225225 101
226226 102
227227 103
228228 104
229229 105
230230 106
231231 107
232232 108
233233 109
234234 110
235235 111
236236 112 HB164 INTRODUCED
237237 Page 5
238238 distribution of the estate by filing a verified petition in
239239 the office of the judge of probate of the county in which the
240240 decedent was domiciled at death. No bond shall be required to
241241 be filed with the petition. If the decedent died with a
242242 self-proved will, the self-proved will shall be filed with the
243243 petition.
244244 (b) The surviving spouse or distributee shall have a
245245 defeasible right to the personal property of the decedent
246246 without awaiting the appointment of a personal representative
247247 or the probate of a will if all of the following conditions
248248 exist:
249249 (1) The value of the entire estate does not exceed
250250 twenty-five thousand dollars ($25,000). This figure shall be
251251 adjusted annually for changes in the Consumer Price Index by
252252 the State Finance Director who shall notify each judge of
253253 probate of the newly adjusted figure.
254254 (2) The decedent died a resident of this state.
255255 (3) No petition for the appointment of a personal
256256 representative is pending or has been granted.
257257 (4) At least 30 days have elapsed since the notice of
258258 the filing of the petition was published as hereinafter
259259 provided.
260260 (5) All funeral expenses of the decedent have been
261261 paid, or alternatively, that arrangements for the payment out
262262 of the estate of the decedent of all unpaid funeral expenses
263263 have been made by the surviving spouse or other distributee.
264264 (6) If the decedent died intestate, the awards due
265265 under Alabama descent and distribution statutes to the
266266 surviving spouse and to the child or children have been
267267 113
268268 114
269269 115
270270 116
271271 117
272272 118
273273 119
274274 120
275275 121
276276 122
277277 123
278278 124
279279 125
280280 126
281281 127
282282 128
283283 129
284284 130
285285 131
286286 132
287287 133
288288 134
289289 135
290290 136
291291 137
292292 138
293293 139
294294 140 HB164 INTRODUCED
295295 Page 6
296296 surviving spouse and to the child or children have been
297297 determined by the judge of probate.
298298 (7) If the decedent died testate, a document purporting
299299 to be his or her will, which on its face, is properly
300300 executed, witnessed, and attested in compliance with Alabama
301301 law, has been duly filed in the office of the judge of
302302 probate.
303303 (8) Notice of the filing of a petition for a summary
304304 distribution under this division shall be published once in a
305305 newspaper of general circulation in the county in which the
306306 decedent was domiciled, or if there is no newspaper of general
307307 circulation in the county, then notice thereof shall be posted
308308 at the county courthouse for one week.
309309 (9) All claims against the decedent's estate have been
310310 paid or arrangements for the payment out of the estate of the
311311 decedent have been made by the surviving spouse or other
312312 distributee according to the following priority:
313313 a. First, to each person entitled to payment for any
314314 funeral expenses owed by the decedent or his or her estate.
315315 b. To the judge of probate for fees and charges
316316 incurred in the proceedings for summary distribution.
317317 c. To any person entitled to payment for expenses
318318 incurred in the decedent's last illness.
319319 d. To the State of Alabama, the county, and any
320320 municipality therein for taxes assessed on the estate of the
321321 decedent previous to his or her death.
322322 e. To each secured creditor.
323323 f. To each unsecured lienholder.
324324 g. To each remaining general unsecured creditor of the
325325 141
326326 142
327327 143
328328 144
329329 145
330330 146
331331 147
332332 148
333333 149
334334 150
335335 151
336336 152
337337 153
338338 154
339339 155
340340 156
341341 157
342342 158
343343 159
344344 160
345345 161
346346 162
347347 163
348348 164
349349 165
350350 166
351351 167
352352 168 HB164 INTRODUCED
353353 Page 7
354354 g. To each remaining general unsecured creditor of the
355355 decedent.
356356 h. To each surviving spouse, child, or other
357357 distributee who is entitled to take under Alabama's descent
358358 and distribution laws, or, alternatively, to each devisee
359359 entitled to take under any testamentary disposition of the
360360 decedent.
361361 (b) The petition for summary distribution shall provide
362362 the following information and allege the following conditions:
363363 (1) The decedent died domiciled in this state and was
364364 domiciled in the county in which the petition is filed.
365365 (2) The decedent's estate is a small estate.
366366 (3) A description of the personal property constituting
367367 the decedent's estate and the value.
368368 (4) No petition for the appointment of a personal
369369 representative is pending nor has one been granted.
370370 (5) The name, address, age, capacity, and relationship
371371 to the decedent of: (i) the petitioner; (ii) each person who
372372 would be entitled to an interest in the decedent's estate
373373 under the laws of descent and distribution of this state; and
374374 (iii) each person entitled to an interest in the decedent's
375375 estate under any will of the decedent filed with the petition.
376376 "Capacity" as used in this subdivision means whether the
377377 person is 19 years of age or older and whether the person is
378378 of sound mind.
379379 (6) If the decedent was survived by a spouse, that the
380380 decedent's surviving spouse is entitled to the decedent's
381381 estate.
382382 (7) If the decedent died without a surviving spouse and
383383 169
384384 170
385385 171
386386 172
387387 173
388388 174
389389 175
390390 176
391391 177
392392 178
393393 179
394394 180
395395 181
396396 182
397397 183
398398 184
399399 185
400400 186
401401 187
402402 188
403403 189
404404 190
405405 191
406406 192
407407 193
408408 194
409409 195
410410 196 HB164 INTRODUCED
411411 Page 8
412412 (7) If the decedent died without a surviving spouse and
413413 without a self-proved will which does not dispose of all of
414414 the small estate, the names of the persons who are entitled to
415415 the decedent's estate under the descent and distribution
416416 statutes of this state and their respective shares.
417417 (8) If the decedent died with a will.
418418 (9) If the decedent died with no surviving spouse and
419419 with a self-proved will, the names of the persons who are
420420 entitled under such self-proved will to a share or interest in
421421 the decedent's estate and their respective shares or
422422 interests.
423423 (10) All funeral expenses of the decedent have been
424424 paid or arrangements for the payment out of the estate of the
425425 decedent of all unpaid funeral expenses have been made by or
426426 on behalf of the petitioner.
427427 (11) All claims against the decedent's estate have been
428428 paid or arrangements for the payment out of the estate of the
429429 decedent have been made by the petitioner.
430430 (c) Upon the filing of a petition for summary
431431 distribution under this division both of the following shall
432432 occur:
433433 (1) Notice of the filing of the petition shall be
434434 published once in a newspaper of general circulation in the
435435 county in which the decedent was domiciled or, if there is no
436436 newspaper of general circulation in the county, the notice of
437437 the filing shall be posted at the county courthouse for one
438438 week.
439439 (2) The petitioner shall notify the Alabama Medicaid
440440 Agency of the filing of the petition as provided in Section
441441 197
442442 198
443443 199
444444 200
445445 201
446446 202
447447 203
448448 204
449449 205
450450 206
451451 207
452452 208
453453 209
454454 210
455455 211
456456 212
457457 213
458458 214
459459 215
460460 216
461461 217
462462 218
463463 219
464464 220
465465 221
466466 222
467467 223
468468 224 HB164 INTRODUCED
469469 Page 9
470470 Agency of the filing of the petition as provided in Section
471471 43-2-698 and shall provide proof of such notice to the probate
472472 court.
473473 (d) The probate court shall not enter an order
474474 directing summary distribution pursuant to a petition under
475475 this division unless:
476476 (1) At least 30 days have elapsed since the notice of
477477 the filing of the petition was published as provided in
478478 subsection (c);
479479 (2) At least 30 days have elapsed since the Alabama
480480 Medicaid Agency received notice of the filing of the petition;
481481 and
482482 (3) It appears to the probate court that all of the
483483 conditions for summary distribution provided in this
484484 subsection have been met and that the petition is due to be
485485 granted."
486486 "§43-2-693
487487 When all of (a) Upon finding that the applicable
488488 conditionsrequirements enumerated in subsection (b) of Section
489489 43-2-692 occurthis division have been met , the judge of
490490 probate shall enter an order directing a summary distribution
491491 of the estate delineating the portion of the small estate that
492492 each person identified in the order is entitled .
493493 (b) The order issued by the court under subsection (a)
494494 shall be final and conclusive as to all items and matters
495495 shown, and appeals must be taken in the manner provided for
496496 from any other final decree of the court in connection with
497497 the administration of decedents' estates. "
498498 "§43-2-694
499499 225
500500 226
501501 227
502502 228
503503 229
504504 230
505505 231
506506 232
507507 233
508508 234
509509 235
510510 236
511511 237
512512 238
513513 239
514514 240
515515 241
516516 242
517517 243
518518 244
519519 245
520520 246
521521 247
522522 248
523523 249
524524 250
525525 251
526526 252 HB164 INTRODUCED
527527 Page 10
528528 "§43-2-694
529529 Upon delivering a copy of the judge of probate's
530530 judge's order fordirecting summary distribution ,or an
531531 affidavit executed by any person having knowledge of the fact
532532 and alleging the concurrence of the conditions listed in
533533 subsection (b) of section 43-2-692 showing the defeasible
534534 right therein, together with a copy of the decedent's will if
535535 the claim is under such will, such spouse or distributee shall
536536 be the persons entitled to summary distribution of the
537537 decedent's estate under this division shall be entitled to
538538 have the decedent's property or the evidence of the decedent's
539539 ownership in such property transferred to him them by any
540540 person owing any money to the decedent's estate, having
541541 custody of any personal property of the decedent or acting as
542542 a registrar or transfer agent of any evidence of interest,
543543 indebtedness, property , or right of the deceased therein."
544544 "§43-2-695
545545 The defeasible right of the surviving spouse or
546546 distributeesa person to summary distribution of a decedent's
547547 estate provided for by this division shall be subject only to
548548 any preexisting rights to administer the estate or probate the
549549 will, or to the superior rights of any other person to such
550550 personal property."
551551 "§43-2-696
552552 The person making payment, delivery, transfer , or
553553 issuance of personal property or evidence thereof pursuant to
554554 an order for summary distribution issued under this division
555555 the affidavit prescribed in section 43-2-694 shall be
556556 discharged and released to the same extent as if made to a
557557 253
558558 254
559559 255
560560 256
561561 257
562562 258
563563 259
564564 260
565565 261
566566 262
567567 263
568568 264
569569 265
570570 266
571571 267
572572 268
573573 269
574574 270
575575 271
576576 272
577577 273
578578 274
579579 275
580580 276
581581 277
582582 278
583583 279
584584 280 HB164 INTRODUCED
585585 Page 11
586586 discharged and released to the same extent as if made to a
587587 personal representative of the decedent, and hethe person
588588 shall not be required to see the petitionapplication thereof
589589 or to inquire into the truth of any statement in the
590590 affidavitpetition if made by any other person. If any person
591591 to whom such orderaffidavit is delivered refuses to pay,
592592 deliver, transfer , or issue any personal property or evidence
593593 thereof, itthe personal property may be recovered or its
594594 payment, delivery, transfer , or issuance compelled in an
595595 action brought for such purpose by or on behalf of the person
596596 entitled thereto under sectionsSections 43-2-691.1, 43-2-692,
597597 and 43-2-695 upon proof of the defeasible right declared by
598598 such sections. Any person to whom payment, delivery, transfer
599599 or issuance is made shall be answerable and accountable
600600 therefor to any personal representative of the estate or to
601601 the surviving spouse or minor children of the decedent who
602602 shall proceed against such person, or to any other person
603603 having a superior right to the decedent's estate. "
604604 "§43-8-40
605605 If an estate is not a small estate under Section
606606 43-2-691 that is being distributed as a summary distribution
607607 under Division 10 of Article 18 of Chapter 2 of Title 43, then
608608 anyAny part of the estate of a decedent not effectively
609609 disposed of by the decedent's his will passes to the
610610 decedent's his heirs as prescribed in the following sections
611611 of this chapter."
612612 "§43-8-252
613613 (a) A person who is divorced from the decedent or whose
614614 marriage to the decedent has been annulled is not a surviving
615615 281
616616 282
617617 283
618618 284
619619 285
620620 286
621621 287
622622 288
623623 289
624624 290
625625 291
626626 292
627627 293
628628 294
629629 295
630630 296
631631 297
632632 298
633633 299
634634 300
635635 301
636636 302
637637 303
638638 304
639639 305
640640 306
641641 307
642642 308 HB164 INTRODUCED
643643 Page 12
644644 marriage to the decedent has been annulled is not a surviving
645645 spouse unless, by virtue of a subsequent marriage, hethe
646646 person is married to the decedent at the time of death. A
647647 decree of separation whichthat does not terminate the status
648648 of husband and wife is not a divorce for purposes of this
649649 section.
650650 (b) For purposes of sectionsSections 43-2-690 through
651651 43-2-698, 43-8-40 through 43-8-49, 43-8-55 through 43-8-58,
652652 43-8-70 through 43-8-76, 43-8-90, 43-8-91, and 43-8-110
653653 through 43-8-113, a surviving spouse does not include:
654654 (1) A person who obtains or consents to a final decree
655655 or judgment of divorce from the decedent or an annulment of
656656 their marriage, which decree or judgment is not recognized as
657657 valid in this state, unless they subsequently remarry;
658658 participate in a marriage ceremony purporting to marry each to
659659 the other, or subsequently live together as man and wife;
660660 (2) A person who, following a decree or judgment of
661661 divorce or annulment obtained by the decedent , marries,
662662 participates in a marriage ceremony with a third person; or
663663 (3) A person who is a party to a valid proceeding
664664 concluded by an order purporting to terminate all marital
665665 property rights."
666666 Section 2. Sections 43-2-691.1, 43-2-697, 43-2-698, and
667667 43-8-23 are added to the Code of Alabama 1975, to read as
668668 follows:
669669 §43-2-691.1
670670 (a) During the pendency of a summary disposition, any
671671 person entitled to the homestead allowance under Section
672672 43-8-110, exempt property under Section 43-8-111, or the
673673 309
674674 310
675675 311
676676 312
677677 313
678678 314
679679 315
680680 316
681681 317
682682 318
683683 319
684684 320
685685 321
686686 322
687687 323
688688 324
689689 325
690690 326
691691 327
692692 328
693693 329
694694 330
695695 331
696696 332
697697 333
698698 334
699699 335
700700 336 HB164 INTRODUCED
701701 Page 13
702702 43-8-110, exempt property under Section 43-8-111, or the
703703 family allowance under Sections 43-8-112 and 43-8-113 may file
704704 a verified petition in the office of the judge of probate in
705705 which the summary distribution is pending. The petition shall
706706 set forth the person's entitlement to the exemption and
707707 allowances. The probate court, upon review and approval of the
708708 petition, may enter an order for disbursing the exemption and
709709 allowances from the small estate to the person in accordance
710710 with Sections 43-8-110, 43-8-111, or 43-8-112 and 43-8-113.
711711 (b) The remainder of the small estate of a decedent
712712 domiciled in Alabama at the time of the decedent's death,
713713 following the exemption and allowances disposition made in
714714 accordance with subsection (a) that meets all of the
715715 conditions of this division, shall be distributed as follows:
716716 (1) To the surviving spouse of the decedent.
717717 (2) If the decedent died with a self-proved will and
718718 with no surviving spouse, to those persons entitled to the
719719 decedent's estate under such will, and to those persons
720720 entitled to share in the decedent's estate under the laws of
721721 descent and distribution of this state for the part of the
722722 decedent's estate not effectively disposed of by the
723723 decedent's self-proved will.
724724 (3) If the decedent died without a surviving spouse and
725725 without a self-proved will, to those persons entitled to share
726726 in the decedent's estate under the laws of descent and
727727 distribution of this state.
728728 §43-2-697
729729 Whenever fraud had been perpetrated in connection with
730730 any proceeding or in any statement filed under this division
731731 337
732732 338
733733 339
734734 340
735735 341
736736 342
737737 343
738738 344
739739 345
740740 346
741741 347
742742 348
743743 349
744744 350
745745 351
746746 352
747747 353
748748 354
749749 355
750750 356
751751 357
752752 358
753753 359
754754 360
755755 361
756756 362
757757 363
758758 364 HB164 INTRODUCED
759759 Page 14
760760 any proceeding or in any statement filed under this division
761761 or if fraud is used to avoid or circumvent the provisions or
762762 purposes of this division, any person injured by these actions
763763 may obtain appropriate relief against the perpetrator of the
764764 fraud or receive restitution from any person, other than a
765765 bona fide purchaser, benefiting from the fraud, whether
766766 innocent or not. Any proceeding must be commenced within one
767767 year after the discovery of the fraud or from the time when
768768 the fraud should have been discovered, but no proceeding may
769769 be brought against anyone who did not perpetrate the fraud
770770 later than five years after the time of the commission of the
771771 fraud. This section has no effect on remedies related to fraud
772772 perpetrated against a decedent during the decedent's lifetime
773773 which affects the succession of the decedent's estate.
774774 §43-2-698
775775 The small estate amount shall at all times be equal to
776776 the combined maximum amount of the homestead allowance, exempt
777777 property, and family allowance provided under Sections
778778 43-8-110 through 43-8-113, as adjusted pursuant to Section
779779 43-8-116.
780780 §43-8-23
781781 In the event the estate qualifies as a small estate
782782 under Section 43-2-691, the summary distribution proceedings
783783 for a small estate under Division 10 of Article 18 of Chapter
784784 2 of Title 43 are available to the small estate.
785785 Section 3. This act shall become effective on October
786786 1, 2025.
787787 365
788788 366
789789 367
790790 368
791791 369
792792 370
793793 371
794794 372
795795 373
796796 374
797797 375
798798 376
799799 377
800800 378
801801 379
802802 380
803803 381
804804 382
805805 383
806806 384
807807 385
808808 386
809809 387
810810 388
811811 389
812812 390