Selling an Inherited House in Alabama: The Probate Guide for Heirs

Selling an inherited house in Alabama starts with a step most heirs do not expect: someone has to be appointed by the county Probate Court before anyone can legally sell anything. The deed does not automatically pass to the person named in the will, and an agreement among siblings is not authority to convey title. Until Letters are issued, the house is stuck.

There is also a widely repeated piece of good news that does not apply to houses. Alabama raised its small-estate threshold in 2025, and heirs reading about it often conclude they can skip probate. Summary distribution is built for estates without real property, so an estate containing a house generally still requires full administration. This guide covers the real timeline, the county courts, the tax treatment, the carrying costs, and the options for heirs who want the house handled rather than managed.

Can you sell before probate is finished?

You can often sell an inherited Alabama house before the estate closes, but never before a personal representative is appointed. The Probate Court's issuance of Letters is the moment authority exists. Before that, no heir, no executor named in the will, and no family agreement can convey clear title, and a title company will not close the transaction.

After Letters issue, the path depends on the will. Many Alabama wills grant the personal representative an express power of sale, which allows a sale without a separate court order. Where the will is silent, or where the estate is intestate, court authorization is generally required before the house is conveyed. Either way, a sale can usually happen months before the estate finishes.

Timing matters here because Letters are commonly issued within roughly 30 to 60 days of filing, while full administration runs 6 to 12 months. Heirs who assume they must wait for the whole process often carry a vacant house for half a year longer than necessary.

How long does Alabama probate take?

Alabama probate typically takes 6 to 12 months from filing to final discharge, with most straightforward estates closing in 6 to 9 months. The binding constraint is not paperwork or court backlog. It is the creditor claim period, which runs six months from the first publication of notice to creditors and overlaps the rest of administration.

That six-month window exists so anyone owed money by the decedent has a fair chance to file a claim. Until it closes, the personal representative cannot safely distribute the estate, because a valid late-surfacing claim could have to be paid. This is why an estate where every heir agrees and every asset is known still cannot be wrapped up in eight weeks.

Complications extend the timeline. A contested will, an heir who cannot be located, a title defect, or an unclear boundary can each add months. So can the practical work of clearing out a house, which is often the slowest part of all and has nothing to do with the court.

The 2025 small-estate change, and why it rarely helps

Alabama's small-estate shortcut generally does not apply to an estate that includes a house, despite the higher threshold that took effect in 2025. The Revised Alabama Small Estates Act became effective October 1, 2025 and raised the summary distribution threshold to roughly $47,000 for 2026, calculated from the homestead, exempt-property, and family allowances and adjusted for inflation each March 1. That is up meaningfully from the prior figure in the mid-thirty-thousands.

The limitation is structural rather than numerical. Summary distribution under Ala. Code Section 43-2-690 and following is designed for estates with no real property requiring probate. Even a modest house in Birmingham's core, where some neighborhood medians run in the $60,000 to $75,000 range, exceeds the threshold on its own and brings real property into the estate.

Heirs regularly find an article about the higher threshold, conclude the estate qualifies, and lose weeks before learning otherwise. If the estate includes a house, plan for full administration from the start and treat any shortcut as a question for an Alabama probate attorney rather than an assumption.

Letters Testamentary and Letters of Administration

Letters are the court document that gives one person authority to act for the estate, and which type you receive depends on whether there is a valid will. Letters Testamentary are issued when the decedent left a will naming an executor. Letters of Administration are issued when there is no will, or when the named executor cannot or will not serve, and the court appoints an administrator instead.

Functionally the two are similar: both make the holder the personal representative, with authority to collect assets, pay valid claims, and, subject to the will or a court order, sell real property. Title companies, banks, and utility providers all ask for a certified copy, so order several when the court issues them.

Alabama also sets a default on compensation. Absent a provision in the will, a personal representative may receive up to 2.5 percent of receipts plus 2.5 percent of disbursements. Heirs serving as personal representative sometimes waive it, and sometimes should not, since the role carries real work and real liability.

Who inherits if there is no will

Alabama's intestate succession statute decides who inherits when there is no will, and the answer is rarely a clean fifty-fifty split. Under Ala. Code Section 43-8-41 and following, the shares depend on who survives the decedent.

A surviving spouse also has a homestead allowance in addition to these shares. The practical result in many families is fractional ownership of one house among several people, which is why intestate estates take longer to sell. Every co-owner has to agree, or the personal representative needs authority that binds them all.

Taxes on an inherited Alabama house

Alabama charges no state estate tax and no state inheritance tax, so most heirs owe nothing to the state on an inherited house. Federal estate tax applies only above the federal exemption, in the range of roughly $15 million in 2026, which puts it out of reach for the overwhelming majority of families.

The more relevant rule is the stepped-up basis. For capital gains purposes, an heir's basis in inherited property is generally its fair market value on the date of death rather than what the decedent originally paid. A house bought for $40,000 in 1985 and worth $190,000 at death carries a basis near $190,000, so a sale close to that figure produces little or no taxable gain. Gains accrue only on appreciation after the date of death.

Two practical consequences follow. First, establishing a defensible date-of-death value early is worth the effort, whether through an appraisal or a documented market analysis. Second, selling sooner rather than later generally keeps the tax picture simple. Alabama also does not tax Social Security, pensions, or retirement withdrawals, which is part of why so many Alabama estates involve long-held houses owned by retirees. Confirm any tax question with a licensed tax professional, since Propcash does not give tax advice.

The county probate courts

Alabama probate is filed in the Probate Court of the county where the decedent lived, and each county runs its own docket, forms, and fee schedule. For the state's three largest metros, that means one of the three courts below.

Filing fees, required forms, and local practice differ by county, so confirm requirements with the specific court rather than assuming a statewide standard. If the decedent lived in one county and the house sits in another, the estate is generally opened where the decedent lived, and ancillary steps may be needed where the property is located.

What it costs to hold the house meanwhile

Holding a vacant inherited house in Alabama is cheaper than in most states on taxes and more expensive than most expect on insurance. Property tax runs roughly $738 a year on a median $195,100 house, given an effective rate of 0.37 to 0.41 percent (propertytaxrates.org, 2026). That is the lowest tax burden of almost any state, and it is why Alabama houses can sit in limbo for years without anyone feeling financial pressure.

Insurance is the opposite story, especially on the coast. Mobile averages roughly $6,840 a year against about $4,863 statewide (MoneyGeek, 2026), and a vacant house often needs a specialty vacancy policy that costs more than a standard one. Carriers may decline coverage on an unoccupied house entirely, which creates real risk during the months an estate is open.

Add utilities kept on to prevent freeze and moisture damage, lawn maintenance to avoid code citations, and periodic checks on a house nobody lives in, and the monthly figure adds up. If the delinquency has already started, our Alabama property tax sale guide covers what happens after December 31 and how redemption works.

Alabama probate terms, defined

Alabama probate correspondence uses terms that determine who can do what, and courts rarely define them for families. These are the ones that matter when a house is involved.

• Probate: The court-supervised process of validating a will, appointing a representative, paying valid claims, and distributing what remains. In Alabama it runs through the county Probate Court.
• Personal representative: The person appointed by the court to administer the estate. Called an executor when named in a will, and an administrator when appointed without one.
• Letters Testamentary: The court document granting authority to a personal representative named in a valid will.
• Letters of Administration: The equivalent document when there is no will or the named executor does not serve.
• Summary distribution: Alabama's small-estate procedure under Ala. Code Section 43-2-690 and following, with a 2026 threshold of roughly $47,000, generally unavailable where the estate includes real property requiring probate.
• Creditor claim period: The six-month window, running from first publication of notice to creditors, during which claims against the estate must be presented.
• Stepped-up basis: The rule setting an heir's tax basis in inherited property at its fair market value on the date of death, which often eliminates capital gains on a prompt sale.
• Intestate: Dying without a valid will, in which case Ala. Code Section 43-8-41 and following determines who inherits.
• Cash home buyer: A company or individual that buys a house directly with its own funds, in its current condition, without a mortgage contingency, and can typically close in days rather than the one to two months a financed sale takes.

Your options for selling

Once Letters issue and sale authority is confirmed, heirs generally choose among three routes, and the right one depends on the condition of the house and how far away everyone lives. There is no rush to decide, and the choice is easier once the numbers are on paper.

Propcash is a direct cash homebuyer. We buy inherited houses across Alabama with our own funds, in any condition, and we do not require a cleanout. Take what you want and leave the rest. Cash transactions can close in as few as 7 days, there are no agent commissions, no closing costs are charged to you, and no repairs or showings are needed. Our offers are based on local market data, and we will show you how we got to our number. We work with personal representatives and coordinate with the estate's attorney and the title company on timing.

We will also tell you when selling to us is not your best move. If the house is in good shape, heirs are local, and the estate is not under time pressure, a traditional listing may net more, and we will say so and point you to a local agent. For a full comparison of every route, see our guide to the best ways to sell a house for cash in Alabama. Local timelines are on our Birmingham and Mobile pages, and statewide coverage is on our Alabama cash home buyer page.

Or call or text (615) 552-4296 to speak with the decision-maker. Our offer stands, so there is no rush to decide while the estate is open.

Frequently Asked Questions

Can you sell an inherited house in Alabama before probate is finished?

Often yes, but not before a personal representative is appointed. Until the Probate Court issues Letters Testamentary or Letters of Administration, no one has legal authority to convey the house. Once Letters are issued, a sale can frequently proceed before the estate fully closes, either under a power of sale granted in the will or with court authorization. Letters are commonly issued within roughly 30 to 60 days of filing, which is far shorter than the full administration.

How long does probate take in Alabama?

Alabama probate typically runs 6 to 12 months, and most straightforward estates close in 6 to 9 months. The floor is set by the creditor claim period, which runs six months from the first publication of notice to creditors and overlaps the rest of administration. That is why an estate cannot close quickly even when the heirs agree on everything and the paperwork is complete.

Does Alabama's small estate law let heirs skip probate on a house?

Generally no. The Revised Alabama Small Estates Act took effect October 1, 2025 and set a summary distribution threshold of roughly $47,000 for 2026, adjusted for inflation each March 1. The critical limitation is that summary distribution is designed for estates without real property requiring probate, so an estate that includes a house generally still needs full administration. Heirs who read about the higher threshold often assume it covers the house, and it usually does not.

Do you pay inheritance tax on a house in Alabama?

No. Alabama has no state estate tax and no state inheritance tax. Federal estate tax applies only to estates above the federal exemption, which is in the range of roughly $15 million in 2026, so it affects very few families. Heirs generally receive a stepped-up basis equal to the property's fair market value on the date of death, which can substantially reduce or eliminate capital gains tax on a sale shortly afterward. Confirm your specific situation with a tax professional.

Who inherits a house in Alabama if there is no will?

Alabama's intestate succession rules under Ala. Code Section 43-8-41 and following control. If there is a surviving spouse and children of that marriage, the spouse generally takes the first $50,000 plus half the balance. If there are children who are not the surviving spouse's, the spouse generally takes half. If there is a spouse and no children but surviving parents, the spouse generally takes the first $100,000 plus half the balance. If there are only children, they take the entire estate. A surviving spouse also has a homestead allowance.

What if the inherited house is full of belongings?

A house full of furniture, papers, and personal property is one of the most common reasons an inherited Alabama house sits for years. Clearing it out is expensive and emotionally hard, especially for heirs who live out of state. A cash buyer that purchases as-is generally does not require the house to be cleaned out, so heirs can take what they want and leave the rest. That removes the single largest practical barrier to closing the estate.

How much does it cost to keep an inherited house in Alabama?

Property tax is unusually cheap in Alabama, at roughly $738 a year on a median $195,100 house given the state's 0.37 to 0.41 percent effective rate (propertytaxrates.org, 2026). Insurance is the bigger carrying cost, particularly on the Gulf Coast, where Mobile averages about $6,840 a year against roughly $4,863 statewide (MoneyGeek, 2026). Add utilities, lawn care, and any repairs, and a vacant inherited house can cost several hundred dollars a month to hold while probate runs.