SB106ENGROSSED
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SB106
WTSR5EE-2
By Senators Smitherman, Williams, Kelley, Roberts, Waggoner,
Coleman-Madison, Albritton, Livingston
RFD: Judiciary
First Read: 05-Feb-25
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First Read: 05-Feb-25
A BILL
TO BE ENTITLED
AN ACT
Relating to the Alabama Small Estates Act; to amend
Sections 43-2-690, 43-2-691, 43-2-692, 43-2-693, 43-2-694,
43-2-695, 43-2-696, 43-8-40, and 43-8-252, Code of Alabama
1975; to further provide for the summary distribution of the
sum of a decedent's estate which contains personal property
valued at a certain maximum amount with authorized adjustments
allowed based on the Consumer Price Index, which includes the
homestead allowance, exempt property, and family allowance as
adjusted; and to add Sections 43-2-691.1, 43-2-697, 43-2-698,
and 43-8-23 to the Code of Alabama 1975, to specify that the
probate court has jurisdiction to manage these small estates
under a modified and streamlined small estate distribution
process.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 43-2-690, 43-2-691, 43-2-692,
43-2-693, 43-2-694, 43-2-695, 43-2-696, 43-8-40, and 43-8-252,
Code of Alabama 1975, are amended to read as follows:
"§43-2-690
This division shall be known as the " Revised Alabama
Small Estates Act."
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Small Estates Act."
"§43-2-691
For the purposes of this division, the following words
and phrases shall have the following meanings respectively
ascribed to them by this section :
(1) DEVISEES. The persons who are entitled to the
personal property of a decedent under the terms of a
testamentary disposition.
(1) DECEDENT. A deceased person who is not survived by
a minor child who is not the child of the surviving spouse, if
any, and whose estate is subject to summary distribution under
this division.
(2) DISTRIBUTEES. The persons who are entitled to the
personal property of a decedent under the terms of a
testamentary disposition or under the Alabama descent and
distribution statutes.
(3)(2) ESTATE. All the personal property of a decedent
who owns no real property at the time of his or her death for
which title does not pass by operation of law.
(4) HEIRS. The persons who are entitled to the personal
property of a decedent under the Alabama descent and
distribution statutes.
(5)(3) PERSON. The term includes natural persons and
corporations.A natural person, corporation, organization,
other legal entity, or any trust or trustee.
(6)(4) PERSONAL REPRESENTATIVE. The term includes an An
executor, administrator, administrator with the will annexed,
and special administrator , and successor personal
representative.
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representative.
(5) SELF-PROVED WILL. A will that is self-proved in
accordance with either Section 43-8-132 or 43-8-133.
(6) SMALL ESTATE. An estate having a value that does
not exceed the small estate amount.
(7) SMALL ESTATE AMOUNT. The sum as adjusted from time
to time based on the Consumer Price Index formula set forth in
Section 43-8-116 of the homestead allowance under Section
43-8-110, exempt property under Section 43-8-111, and the
family allowance under Sections 43-8-112 and 43-8-113.
(8) SUMMARY DISTRIBUTION. The procedure provided in
this division to distribute the small estate of a decedent
without the appointment of a personal representative.
(9) SURVIVING SPOUSE. The spouse of the decedent at the
time of decedent's death, provided the spouse is a surviving
spouse under Section 43-8-252 and is not an individual
claiming to be a spouse under common law, whether or not such
common law marriage allegedly occurred before or after January
1, 2017."
"§43-2-692
(a) The surviving spouse, if there is one, otherwise
the distributees of an estate of personal property only, may
initiate a proceeding for summary distribution of the estate
by filing a verified petition in the office of the judge of
probate of the county in which the decedent was domiciled at
death alleging the conditions provided in subsection (b). The
petition shall include a description of the estate of the
decedent. No bond shall be required to be filed with the
petition.
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petition.
(a) A person, or a person duly authorized to act for
the person, entitled to an interest in a small estate under
this division may initiate a proceeding for summary
distribution of the estate by filing a verified petition in
the office of the judge of probate of the county in which the
decedent was domiciled at death. No bond shall be required to
be filed with the petition. If the decedent died with a
self-proved will, the self-proved will shall be filed with the
petition.
(b) The surviving spouse or distributee shall have a
defeasible right to the personal property of the decedent
without awaiting the appointment of a personal representative
or the probate of a will if all of the following conditions
exist:
(1) The value of the entire estate does not exceed
twenty-five thousand dollars ($25,000). This figure shall be
adjusted annually for changes in the Consumer Price Index by
the State Finance Director who shall notify each judge of
probate of the newly adjusted figure.
(2) The decedent died a resident of this state.
(3) No petition for the appointment of a personal
representative is pending or has been granted.
(4) At least 30 days have elapsed since the notice of
the filing of the petition was published as hereinafter
provided.
(5) All funeral expenses of the decedent have been
paid, or alternatively, that arrangements for the payment out
of the estate of the decedent of all unpaid funeral expenses
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of the estate of the decedent of all unpaid funeral expenses
have been made by the surviving spouse or other distributee.
(6) If the decedent died intestate, the awards due
under Alabama descent and distribution statutes to the
surviving spouse and to the child or children have been
determined by the judge of probate.
(7) If the decedent died testate, a document purporting
to be his or her will, which on its face, is properly
executed, witnessed, and attested in compliance with Alabama
law, has been duly filed in the office of the judge of
probate.
(8) Notice of the filing of a petition for a summary
distribution under this division shall be published once in a
newspaper of general circulation in the county in which the
decedent was domiciled, or if there is no newspaper of general
circulation in the county, then notice thereof shall be posted
at the county courthouse for one week.
(9) All claims against the decedent's estate have been
paid or arrangements for the payment out of the estate of the
decedent have been made by the surviving spouse or other
distributee according to the following priority:
a. First, to each person entitled to payment for any
funeral expenses owed by the decedent or his or her estate.
b. To the judge of probate for fees and charges
incurred in the proceedings for summary distribution.
c. To any person entitled to payment for expenses
incurred in the decedent's last illness.
d. To the State of Alabama, the county, and any
municipality therein for taxes assessed on the estate of the
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municipality therein for taxes assessed on the estate of the
decedent previous to his or her death.
e. To each secured creditor.
f. To each unsecured lienholder.
g. To each remaining general unsecured creditor of the
decedent.
h. To each surviving spouse, child, or other
distributee who is entitled to take under Alabama's descent
and distribution laws, or, alternatively, to each devisee
entitled to take under any testamentary disposition of the
decedent.
(b) The petition for summary distribution shall provide
the following information and allege the following conditions:
(1) The decedent died domiciled in this state and was
domiciled in the county in which the petition is filed.
(2) The decedent's estate is a small estate.
(3) A description of the personal property constituting
the decedent's estate and the value.
(4) No petition for the appointment of a personal
representative is pending nor has one been granted.
(5) The name, address, age, capacity, and relationship
to the decedent of: (i) the petitioner; (ii) each person who
would be entitled to an interest in the decedent's estate
under the laws of descent and distribution of this state; and
(iii) each person entitled to an interest in the decedent's
estate under any will of the decedent filed with the petition.
"Capacity" as used in this subdivision means whether the
person is 19 years of age or older and whether the person is
of sound mind.
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of sound mind.
(6) If the decedent was survived by a spouse, that the
decedent's surviving spouse is entitled to the decedent's
estate.
(7) If the decedent died without a surviving spouse and
without a self-proved will which does not dispose of all of
the small estate, the names of the persons who are entitled to
the decedent's estate under the descent and distribution
statutes of this state and their respective shares.
(8) If the decedent died with a will.
(9) If the decedent died with no surviving spouse and
with a self-proved will, the names of the persons who are
entitled under such self-proved will to a share or interest in
the decedent's estate and their respective shares or
interests.
(10) All funeral expenses of the decedent have been
paid or arrangements for the payment out of the estate of the
decedent of all unpaid funeral expenses have been made by or
on behalf of the petitioner.
(11) All claims against the decedent's estate have been
paid or arrangements for the payment out of the estate of the
decedent have been made by the petitioner.
(c) Upon the filing of a petition for summary
distribution under this division both of the following shall
occur:
(1) Notice of the filing of the petition shall be
published once in a newspaper of general circulation in the
county in which the decedent was domiciled or, if there is no
newspaper of general circulation in the county, the notice of
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newspaper of general circulation in the county, the notice of
the filing shall be posted at the county courthouse for one
week.
(2) The petitioner shall notify the Alabama Medicaid
Agency of the filing of the petition as provided in Section
43-2-698 and shall provide proof of such notice to the probate
court.
(d) The probate court shall not enter an order
directing summary distribution pursuant to a petition under
this division unless:
(1) At least 30 days have elapsed since the notice of
the filing of the petition was published as provided in
subsection (c);
(2) At least 30 days have elapsed since the Alabama
Medicaid Agency received notice of the filing of the petition;
and
(3) It appears to the probate court that all of the
conditions for summary distribution provided in this
subsection have been met and that the petition is due to be
granted."
"§43-2-693
When all of (a) Upon finding that the applicable
conditionsrequirements enumerated in subsection (b) of Section
43-2-692 occurthis division have been met , the judge of
probate shall enter an order directing a summary distribution
of the estate delineating the portion of the small estate that
each person identified in the order is entitled .
(b) The order issued by the court under subsection (a)
shall be final and conclusive as to all items and matters
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shall be final and conclusive as to all items and matters
shown, and appeals must be taken in the manner provided for
from any other final decree of the court in connection with
the administration of decedents' estates. "
"§43-2-694
Upon delivering a copy of the judge of probate's
judge's order fordirecting summary distribution ,or an
affidavit executed by any person having knowledge of the fact
and alleging the concurrence of the conditions listed in
subsection (b) of section 43-2-692 showing the defeasible
right therein, together with a copy of the decedent's will if
the claim is under such will, such spouse or distributee shall
be the persons entitled to summary distribution of the
decedent's estate under this division shall be entitled to
have the decedent's property or the evidence of the decedent's
ownership in such property transferred to him them by any
person owing any money to the decedent's estate, having
custody of any personal property of the decedent or acting as
a registrar or transfer agent of any evidence of interest,
indebtedness, property , or right of the deceased therein."
"§43-2-695
The defeasible right of the surviving spouse or
distributeesa person to summary distribution of a decedent's
estate provided for by this division shall be subject only to
any preexisting rights to administer the estate or probate the
will, or to the superior rights of any other person to such
personal property."
"§43-2-696
The person making payment, delivery, transfer , or
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The person making payment, delivery, transfer , or
issuance of personal property or evidence thereof pursuant to
an order for summary distribution issued under this division
the affidavit prescribed in section 43-2-694 shall be
discharged and released to the same extent as if made to a
personal representative of the decedent, and hethe person
shall not be required to see the petitionapplication thereof
or to inquire into the truth of any statement in the
affidavitpetition if made by any other person. If any person
to whom such orderaffidavit is delivered refuses to pay,
deliver, transfer , or issue any personal property or evidence
thereof, itthe personal property may be recovered or its
payment, delivery, transfer , or issuance compelled in an
action brought for such purpose by or on behalf of the person
entitled thereto under sectionsSections 43-2-691.1, 43-2-692,
and 43-2-695 upon proof of the defeasible right declared by
such sections. Any person to whom payment, delivery, transfer
or issuance is made shall be answerable and accountable
therefor to any personal representative of the estate or to
the surviving spouse or minor children of the decedent who
shall proceed against such person, or to any other person
having a superior right to the decedent's estate. "
"§43-8-40
If an estate is not a small estate under Section
43-2-691 that is being distributed as a summary distribution
under Division 10 of Article 18 of Chapter 2 of Title 43, then
anyAny part of the estate of a decedent not effectively
disposed of by the decedent's his will passes to the
decedent's his heirs as prescribed in the following sections
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decedent's his heirs as prescribed in the following sections
of this chapter."
"§43-8-252
(a) A person who is divorced from the decedent or whose
marriage to the decedent has been annulled is not a surviving
spouse unless, by virtue of a subsequent marriage, hethe
person is married to the decedent at the time of death. A
decree of separation whichthat does not terminate the status
of husband and wife is not a divorce for purposes of this
section.
(b) For purposes of sectionsSections 43-2-690 through
43-2-698, 43-8-40 through 43-8-49, 43-8-55 through 43-8-58,
43-8-70 through 43-8-76, 43-8-90, 43-8-91, and 43-8-110
through 43-8-113, a surviving spouse does not include:
(1) A person who obtains or consents to a final decree
or judgment of divorce from the decedent or an annulment of
their marriage, which decree or judgment is not recognized as
valid in this state, unless they subsequently remarry;
participate in a marriage ceremony purporting to marry each to
the other, or subsequently live together as man and wife;
(2) A person who, following a decree or judgment of
divorce or annulment obtained by the decedent , marries,
participates in a marriage ceremony with a third person; or
(3) A person who is a party to a valid proceeding
concluded by an order purporting to terminate all marital
property rights."
Section 2. Sections 43-2-691.1, 43-2-697, 43-2-698, and
43-8-23 are added to the Code of Alabama 1975, to read as
follows:
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follows:
§43-2-691.1
(a) During the pendency of a summary disposition, any
person entitled to the homestead allowance under Section
43-8-110, exempt property under Section 43-8-111, or the
family allowance under Sections 43-8-112 and 43-8-113 may file
a verified petition in the office of the judge of probate in
which the summary distribution is pending. The petition shall
set forth the person's entitlement to the exemption and
allowances. The probate court, upon review and approval of the
petition, may enter an order for disbursing the exemption and
allowances from the small estate to the person in accordance
with Sections 43-8-110, 43-8-111, or 43-8-112 and 43-8-113.
(b) The remainder of the small estate of a decedent
domiciled in Alabama at the time of the decedent's death,
following the exemption and allowances disposition made in
accordance with subsection (a) that meets all of the
conditions of this division, shall be distributed as follows:
(1) To the surviving spouse of the decedent.
(2) If the decedent died with a self-proved will and
with no surviving spouse, to those persons entitled to the
decedent's estate under such will, and to those persons
entitled to share in the decedent's estate under the laws of
descent and distribution of this state for the part of the
decedent's estate not effectively disposed of by the
decedent's self-proved will.
(3) If the decedent died without a surviving spouse and
without a self-proved will, to those persons entitled to share
in the decedent's estate under the laws of descent and
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in the decedent's estate under the laws of descent and
distribution of this state.
§43-2-697
Whenever fraud had been perpetrated in connection with
any proceeding or in any statement filed under this division
or if fraud is used to avoid or circumvent the provisions or
purposes of this division, any person injured by these actions
may obtain appropriate relief against the perpetrator of the
fraud or receive restitution from any person, other than a
bona fide purchaser, benefiting from the fraud, whether
innocent or not. Any proceeding must be commenced within one
year after the discovery of the fraud or from the time when
the fraud should have been discovered, but no proceeding may
be brought against anyone who did not perpetrate the fraud
later than five years after the time of the commission of the
fraud. This section has no effect on remedies related to fraud
perpetrated against a decedent during the decedent's lifetime
which affects the succession of the decedent's estate.
§43-2-698
The small estate amount shall at all times be equal to
the combined maximum amount of the homestead allowance, exempt
property, and family allowance provided under Sections
43-8-110 through 43-8-113, as adjusted pursuant to Section
43-8-116.
§43-8-23
In the event the estate qualifies as a small estate
under Section 43-2-691, the summary distribution proceedings
for a small estate under Division 10 of Article 18 of Chapter
2 of Title 43 are available to the small estate.
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2 of Title 43 are available to the small estate.
Section 3. This act shall become effective on October
1, 2025.
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1, 2025.
Senate
Read for the first time and referred
to the Senate committee on Judiciary
................05-Feb-25
Read for the second time and placed
on the calendar:
0 amendments
................20-Feb-25
Read for the third time and passed
as amended
Yeas 33
Nays 0
Abstains 0
................18-Mar-25
Patrick Harris,
Secretary.
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