Where the estate is opened.
Living trust or probate
A revocable living trust holds assets you title in the trustee's name. You can serve as trustee while you are able.
At death, the successor trustee handles those assets. Property you leave in your own name can still go through the probate court. A pour-over will sends leftover assets into the trust, and those leftover assets may pass through probate first.
The probate path
In Alabama, the estate is opened in the Probate Court.
The Handbook for Alabama Judges of Probate, published by the Alabama Law Institute on the legislature site, states that the Alabama Constitution provides that there must be a probate court in each county. It also states that orders, judgments, and decrees issued by probate courts are accorded the same validity and presumption accorded courts of general jurisdiction. A personal representative administers the estate, and the handbook states that the court may allow compensation or attorney fees on an annual, partial, or final settlement.
Source: Handbook for Alabama Judges of Probate, 11th edition
Fees
In Alabama, probate compensation is a statutory maximum.
The same handbook, citing Alabama Code section 43-2-848, states that the personal representative is entitled to reasonable compensation and that the fee shall not exceed two and a half percent of the value of all property received and under the possession and control of the personal representative, and two and a half percent of all disbursements. The court may allow reasonable compensation for extraordinary service. It is a cap, not a multi-bracket percentage schedule. The handbook also states that on settlement the court may allow an attorney fee.
Source: Handbook for Alabama Judges of Probate, 11th edition
Small estate
Alabama has a small-estate procedure. The statute states who can use it.
Alabama uses summary distribution, not a collection affidavit with a single dollar cap. Enrolled Act 2025-431, effective October 1, 2025, defines a small estate as an estate having a value that does not exceed the small estate amount. Section 43-2-698, as added by that act, states that the small estate amount shall at all times be equal to the combined maximum amount of the homestead allowance, exempt property, and family allowance under sections 43-8-110 through 43-8-113, as adjusted under section 43-8-116. The estate counted is personal property of a decedent who owns no real property at death for which title does not pass by operation of law. A verified petition is filed with the judge of probate. The official enrolled act does not state a single dollar figure for that combined allowance.
Source: HB164 Enrolled, Act amending the Revised Alabama Small Estates Act
Estate or inheritance tax
The Alabama Department of Revenue states that the Alabama Estate and Inheritance Tax is established by Title 40 Chapter 15, and that estates where the decedent's date of death is after December 31, 2004, are not required to file with Alabama. The page does not say the tax was repealed.
Source: Alabama Fiduciary, Estate, and Inheritance Tax
Questions
The answers use the same statute and court pages as the sections above.
Does a living trust avoid probate in Alabama?
A revocable living trust holds the assets you title in the trustee's name. The successor trustee handles those assets. Property still titled in your own name can be a probate matter. A pour-over will can send leftover assets into the trust, and those leftover assets may still pass through probate first.
What is the small-estate procedure in Alabama?
Alabama uses summary distribution, not a collection affidavit with a single dollar cap. Enrolled Act 2025-431, effective October 1, 2025, defines a small estate as an estate having a value that does not exceed the small estate amount. Section 43-2-698, as added by that act, states that the small estate amount shall at all times be equal to the combined maximum amount of the homestead allowance, exempt property, and family allowance under sections 43-8-110 through 43-8-113, as adjusted under section 43-8-116. The estate counted is personal property of a decedent who owns no real property at death for which title does not pass by operation of law. A verified petition is filed with the judge of probate. The official enrolled act does not state a single dollar figure for that combined allowance.
How are probate fees set in Alabama?
The same handbook, citing Alabama Code section 43-2-848, states that the personal representative is entitled to reasonable compensation and that the fee shall not exceed two and a half percent of the value of all property received and under the possession and control of the personal representative, and two and a half percent of all disbursements. The court may allow reasonable compensation for extraordinary service. It is a cap, not a multi-bracket percentage schedule. The handbook also states that on settlement the court may allow an attorney fee.
Does Alabama tax an estate or an inheritance?
The Alabama Department of Revenue states that the Alabama Estate and Inheritance Tax is established by Title 40 Chapter 15, and that estates where the decedent's date of death is after December 31, 2004, are not required to file with Alabama. The page does not say the tax was repealed.
Sources
These are the statute and court pages used above.