Alabama Increases the Limit for the Small Estates Act: What Families Should Know in 2025

Guidance from a Birmingham, Alabama estate planning law firm.

In 2025, Alabama made significant changes to its small estates act, giving families an easier path through probate. For many Alabamians, this means a faster and less expensive way to transfer assets after the death of a loved one—without enduring the delays of full probate. If you are planning ahead or managing a loved one’s estate, understanding these new rules is essential.

Changes to Alabama’s Small Estates Act

Until now, estates with limited assets could qualify for a simplified process called summary distribution, provided the estate’s value fell under an annually adjusted cap ($36,030 in 2024).

With the passage of the Revised Alabama Small Estates Act, effective October 1, 2025, the threshold is increasing. Estates may now qualify if their value is equal to or less than the combined homestead allowance, exempt property allowance, and family allowance.

For 2025, this amounts to approximately $47,000. This expansion allows more families to use the streamlined probate process.

How the Alabama Small Estate Probate Process Works

The summary distribution process allows families to settle modest estates more quickly and at a lower cost. Here is an overview of how it works:

1. Confirm Eligibility – To qualify, the decedent must have been an Alabama resident, the value of the estate must fall under the legal limit, and there must not be a surviving minor child who is not the child of the surviving spouse. The decedent must not have owned real property requiring probate to transfer ownership. The applicant must be a rightful heir or surviving spouse, and no pending or previously granted petition for a personal representative should exist.

   
   

2. File a Petition – A verified Petition for Summary Distribution is filed in the probate court of the decedent’s county. The petition lists heirs, assets, and confirms eligibility. A bond is not required to be filed with the petition. If the decedent had a self-proved will, it must be filed with the petition.

   
   

   • Self-proved wills include a notarized affidavit signed by the testator and witnesses, which eliminates the need for witness testimony in court.

     
     

3. Pay Debts and Expenses – Funeral expenses must be paid or arrangements made for payment out of the estate, and all valid debts of the estate must be paid or arrangements made for payment out of the estate.

   
   

4. Provide Notice – The petitioner must publish notice once in a newspaper of general circulation in the decedent’s county—or, if no newspaper is available, post the notice at the county courthouse for one week. The Alabama Medicaid Agency must also be notified, with proof submitted to the court.

   
   

5. Court Review – The probate judge reviews the petition and may approve summary distribution once:

   
   

   • Thirty days have passed since the notice was published.

   • Thirty days have passed since the Alabama Medicaid Agency received notice.

   • The court confirms all conditions for summary distribution have been met.

     
     

6. Distribute Assets – Once approved, assets such as bank accounts, vehicles, and personal property are distributed directly to heirs or beneficiaries according to the court’s order.

   
   

7. Timeline – Unlike formal probate, which can take months or years, small estate probate is often completed much faster, allowing families to access assets quickly and efficiently.

   
   

Spousal Rights in a Small Estate

Even if a decedent left a self-proved will giving assets to someone else, Alabama law protects the surviving spouse’s statutory rights. The surviving spouse is entitled to certain allowances before any remaining property is distributed, including:

• Homestead Allowance – $15,000 for the surviving spouse’s primary residence.

• Exempt Property – Approximately $7,500 in household goods, vehicles, and personal property.

• Family Allowance – Reasonable support for the surviving spouse and minor or dependent children during estate administration.

  
  

Additionally, a surviving spouse may elect to take a statutory share of the estate (an elective share) instead of what the will provides. These protections ensure the surviving spouse receives at least these amounts, even if the decedent’s will directs otherwise.

Practical Impact: In many small estate cases, the surviving spouse may receive all or most of the estate because the estate value is often equal to or less than the combined allowances (~$47,000 in 2025). This highlights why it is important to understand spousal rights when planning or administering a small estate.

Why the Change Matters

Probate can be stressful and time-consuming. These updates mean:

• More families qualify for simplified probate.

• Probate costs will be lower for many families.

• Probate courts can resolve cases more efficiently.

  
  

Who Qualifies for the Small Estate Process?

To use this procedure:

• The decedent must have lived in Alabama.

• The decedent must not have owned real property requiring probate to transfer ownership.

• The probate estate value must fall under the legal limit.

• The applicant must be entitled to inherit (spouse, child, or other heir).

  
  

Because each case is different, it is wise to consult with an Alabama probate attorney before proceeding.

How Probate Estate Value Is Calculated

Not every asset counts toward the probate estate. A probate attorney reviews each asset to determine whether it is a probate or non-probate asset.

• Non-probate assets include jointly owned property with survivorship rights, accounts with valid beneficiary or payable-on-death designations, and assets owned by a trust.

• Only probate assets are included in the estate’s value.

  
  

In general, the smaller the probate estate, the simpler and less expensive the process. In some cases, probate can be avoided altogether with proper planning.

Ways to Minimize the Value of a Probate Estate

An estate planning attorney can recommend strategies to reduce the size of your probate estate and, in many cases, help you avoid probate entirely. Tools include:

• Joint Ownership with Rights of Survivorship – Assets owned jointly with survivorship rights pass directly to the surviving owner, bypassing probate.

• Beneficiary and Payable-on-Death Designations – Retirement accounts, investment accounts, and bank accounts can transfer directly to beneficiaries without probate. Financial institutions must follow these designations, even if a will says otherwise.

• Trusts – Assets titled in the name of a trust avoid probate. However, a trust only works if it is properly funded, meaning ownership of assets is legally transferred to the trust.

  
  

Planning Ahead with an Alabama Estate Planning Attorney

While Alabama’s higher small estate threshold will help many families, it is not a substitute for a comprehensive estate plan. A well-crafted will or trust ensures:

• Your wishes are carried out.

• Your family avoids unnecessary court involvement.

• Your loved ones have clarity and peace of mind.

  
  

Final Thoughts

Alabama’s new small estate law is welcome news for many families. By raising the threshold to around $47,000, more estates can use the streamlined probate process. Still, the best protection for your family comes from proactive estate planning.

Your Next Step

At Provident Law / Estate Planning LLC, we help Alabama families navigate probate and design customized estate plans—including wills, trusts, powers of attorney, and advance healthcare directives. Whether you are planning to protect your legacy or managing the estate of a loved one, our team is ready to provide the guidance and support you need.

About the Author

Colin McMichen is an experienced attorney and the founder of Provident Law / Estate Planning LLC, a Birmingham, Alabama-based firm. With a focus on estate planning and probate law, Colin is dedicated to helping individuals and families navigate complex legal matters with confidence.