Intestacy Laws in Alabama and What They Mean for You

You know that creating a will is important if you want your assets to be distributed to those you love after your death. But what happens if you die without a will? If you haven’t left a will specifying who you want to inherit your possessions, your estate will be distributed according to intestacy laws in Alabama. Here’s what you need to know.

Understanding Alabama intestacy laws may be useful. However, when you have a customized estate plan, you won’t have to worry about your assets being distributed by the state.

Intestacy Laws in Alabama: What You Need to Know

Common Inheritance Situations

Dying intestate means you die with no will. In this scenario, your assets will be distributed to close relatives. Intestate succession laws most commonly involve distributions to the following:

• Your spouse
• Your children
• Your parents.

Alabama state law specifies how your assets should be distributed depending on which relatives you leave behind after death:

A Spouse (but No Parents or Children)

If you die and leave behind only a spouse, your spouse will inherit all of your intestate property.

Children (but No Spouse)

If you die and leave behind children, but you have no husband or wife, your children inherit all of your intestate property.

Parents (but No Spouse or Children)

In this situation, your parents would inherit everything.

A Spouse and Parents

In this situation, your assets would be distributed as follows:

• Your spouse gets the first $100,000.
• Your spouse gets half of your remaining estate.
• Your parents get the other half.

For example, imagine you pass away and leave a $200,000 estate. You have no children, but you leave behind your spouse and your parents. If you don’t have a will, and Alabama intestacy laws apply, your spouse gets $100,000, and your spouse and parents split the remaining $100,000. This means your spouse inherits a total of $150,000, and your parents inherit $50,000.

A Spouse and Children

Alabama intestacy laws are different depending on whether the children were born to you and your spouse or your spouse is not the other parent. If the surviving children were born to you and your current spouse, your assets will be distributed as follows:

• Your spouse gets the first $50,000 of your intestate property.
• Your spouse gets half the remaining property.
• Your children get the other half.

If your current spouse is not the other parent of your children, dividing your assets is simpler: your spouse inherits half your property, and your children inherit the other half.

Siblings (but No Children, Spouse, or Parents)

In this case, your siblings would inherit everything. If you have no siblings — as well as no children, no spouse, and no surviving parents — other close relatives may receive your assets. In the very rare case that you die without a will and the court cannot find anyone related to you, your property will “escheat,” meaning it will be passed to the state.

It’s never the wrong time to create an estate plan. Call Southern Estate Lawyers at (251) 444-7000 to request a free initial conversation.

Do All of Your Assets Pass Through Intestate Succession?

If you die without a will, many of your assets will likely be distributed according to intestate succession laws. However, only assets that go through probate are distributed this way. These are some of the assets that aren’t passed through intestacy laws:

• Life insurance policies where you named a beneficiary
• Retirement accounts with a named beneficiary
• Property you co-own with someone else
• Payable-on-death bank accounts
• Property held in a living trust
• Homes or other real estate with a transfer on death deed.

It’s important to note that if you have named a beneficiary for a life insurance policy (or another account) and that beneficiary has died, the asset could be passed to your closest relatives via intestacy laws. This is a good reason to regularly update your estate plan and keep your beneficiary designations up to date.

Other Useful Things to Know About Alabama Intestacy Laws

Intestate succession laws can be more complex than many people realize. These are some other key laws to know:

“Half” Relatives Are Treated as Full Relatives

Under the Alabama code, “half” relatives inherit the same share of assets they would inherit if they were full relatives. For example, if you die and leave behind a sister and a half-sister, each one will inherit the same portion of your estate.

There Is a Survivorship Period

Alabama’s intestate succession laws have a somewhat unusual condition — to inherit any of your estate, someone must outlive you by a minimum of five days.

Posthumous Relatives Can Inherit, Too

It can often take significant time for your estate to go through probate, so it’s possible that children or other relatives could be born after your death but before your assets are distributed. The law specifies that these “posthumous relatives” must have the same inheritance rights as those who were alive at the time of your death.

For example, if you die unexpectedly and leave behind a pregnant wife and a young child, the new baby will have the same inheritance rights as your older child.

Wrongful Death Settlements Are Distributed According to Intestate Succession Laws

If you file a wrongful death lawsuit, Alabama’s intestacy laws will apply. This means that any monetary award given must be distributed according to intestacy laws. This is true no matter who files the lawsuit or what the deceased person specifies in their will.

Ready to Create Your Estate Plan?

It All Starts With the Right Estate Planning Lawyer

Thinking about dying is never comfortable. However, if you’re willing to face the temporary discomfort of estate planning, you’ll give yourself and your loved ones unparalleled peace of mind.

The Southern Estate Lawyers team understands that estate planning is highly personal. We take the time to get to know you and your goals and help you build an estate plan that suits your needs.

We have more than 40 years of experience in the world of estate planning. If you’re ready to get started, call us at (251) 444-7000 for a free consultation.