You have inherited property in Alabama — a house, a piece of land, a family farm. The previous owner’s name is still on the deed. Now what?
This is one of the most common questions we hear at Jerry Taylor Law, and the answer depends entirely on how the property was owned and whether the deceased person had an estate plan in place. The process can be straightforward or complicated, fast or painfully slow — and the difference usually comes down to what planning was done before the death occurred.
The Deed Does Not Automatically Change
The first thing to understand: inheriting property doesn’t automatically put your name on the deed. The deed is the legal document recorded at the county courthouse that shows who owns the property. Until a new deed is recorded transferring ownership to you, the property is still legally titled in the deceased person’s name — even if everyone in the family agrees it is “yours.”
This matters for several practical reasons. You cannot sell the property, refinance it, take out a home equity line of credit, or in some cases even insure it properly until the deed is in your name. You also cannot claim the homestead exemption for property tax purposes.
How the Property Was Owned Determines the Process
The method for getting the deed changed depends on how the deceased person held title to the property. There are several common scenarios.
Scenario 1: Property Held in a Revocable Living Trust
If the deceased person transferred the property into a revocable living trust during their lifetime, this is the simplest scenario. The successor trustee named in the trust document has the authority to transfer the property directly to the beneficiary by executing a new deed — typically a trustee’s deed.
No probate is required. No court involvement. The successor trustee simply prepares the deed, signs it in their capacity as trustee, and records it at the county Probate Court (which handles real estate recordings in Alabama). This can often be completed within days.
This is one of the primary reasons we recommend revocable living trusts for anyone who owns real estate in Alabama. The property transfer happens immediately, privately, and without legal fees for probate.
Scenario 2: Property Owned Jointly with Right of Survivorship
If the property was owned as “joint tenants with right of survivorship,” the surviving owner automatically becomes the sole owner at the moment of death. No probate is needed. (Note: Alabama does not recognize tenancy by the entirety, which some other states offer to married couples. In Alabama, married couples who want survivorship rights must use joint tenancy with explicit survivorship language in the deed.)
To update the public record, the surviving owner typically records an Affidavit of Survivorship along with a certified copy of the death certificate at the county Probate Court. This removes the deceased person’s name from the title chain and confirms sole ownership in the survivor.
However, be careful here. Alabama defaults to “tenancy in common” — NOT joint tenancy with right of survivorship — unless the deed specifically says otherwise. If the deed says “John Smith and Jane Smith” without the survivorship language, each person owns a 50% undivided interest, and the deceased person’s 50% goes through probate. The exact wording on the existing deed matters enormously.
Scenario 3: Property Passes Through a Will (Probate Required)
If the deceased person owned the property solely in their own name and left a will directing who should receive it, the property must go through probate. The executor (personal representative) named in the will must open a probate case with the county Probate Court, get appointed by the court, administer the estate, and eventually receive court authority to transfer the property.
Once the probate estate is ready for distribution, the personal representative executes a Personal Representative’s Deed transferring the property to the beneficiary named in the will. This deed is then recorded at the courthouse.
The timeline for this process depends on the complexity of the estate, but expect a minimum of six to nine months due to the mandatory creditor notice period in Alabama. Contested estates can take much longer.
Scenario 4: No Will (Intestate — Probate Required)
If the deceased person had no will and no trust, the property passes according to Alabama’s intestacy laws. This also requires probate. The court appoints an administrator, the estate goes through the full probate process, and the property is eventually distributed to the heirs as determined by statute.
Alabama’s intestacy rules can produce unexpected results. If the deceased had a spouse and children from a prior relationship, the spouse receives only one-half of the intestate estate — the children from the prior relationship split the other half. These situations frequently lead to disputes among family members about what to do with the property.
Scenario 5: Small Estate Affidavit (Limited Use)
Alabama’s Summary Distribution statute (Code of Alabama § 43-2-692) allows heirs to collect personal property valued at or below the statutory threshold — currently around $47,000 under the Revised Alabama Small Estates Act, adjusted periodically — without opening probate. However, this procedure generally does not apply to real estate. For real property, you will typically need either a trust transfer, survivorship affidavit, or probate proceeding.
Some attorneys use a combination of the small estate affidavit and a separate deed from all heirs to transfer real property outside of formal probate in very small estates, but this approach has limitations and risks. It is not a substitute for proper estate planning.
Step-by-Step: How to Record a New Deed in Alabama
No matter which scenario applies to you, the final step is recording a new deed at the county courthouse. The mechanics are the same.
Step 1: Determine the correct deed type. Depending on the situation, you will use a Trustee’s Deed (trust transfer), Personal Representative’s Deed (probate transfer), Warranty Deed, or Quitclaim Deed. The deed type affects the warranties and protections conveyed to the new owner.
Step 2: Prepare the deed. The deed must include the legal description of the property (found on the existing deed or at the county records office), the grantor’s name and capacity (e.g., “as Successor Trustee of the John Smith Revocable Living Trust”), the grantee’s name, and the consideration (often stated as “$10.00 and other good and valuable consideration” for family transfers).
Step 3: Execute the deed. The grantor must sign the deed in the presence of a notary public. Alabama requires notarization for all deeds to be recorded.
Step 4: Record the deed. Take the original signed and notarized deed to the Probate Court in the county where the property is located. Baldwin County recordings are handled at the Baldwin County Probate Court in Bay Minette. Mobile County recordings are at the Mobile County Probate Court. Recording fees vary by county. In Baldwin County, expect around $13 for the first page plus $3 per additional page, plus small data processing and archive fees. Other counties charge slightly different amounts — check with your county Probate Court for exact fees.
Step 5: Update property tax records. After recording, notify the county tax assessor’s office of the ownership change. If you plan to use the property as your primary residence, file for the homestead exemption — this can significantly reduce your property tax bill.
Step 6: Update insurance. Contact the property insurance company to update the named insured on the policy. Coverage under the prior owner’s name may not protect you adequately.
Common Mistakes When Transferring Inherited Property
Doing nothing. Many families leave the deed in the deceased person’s name for years — sometimes decades. This creates a worsening problem over time. As additional family members die, the number of potential heirs multiplies, and getting clear title becomes exponentially more difficult and expensive. We regularly help families untangle title issues that could have been resolved easily if addressed promptly.
Using a quitclaim deed when a warranty deed is appropriate. Quitclaim deeds transfer whatever interest the grantor has, with no warranties. If you plan to sell the property or use it as collateral for a loan, a title company or lender may require a warranty deed or title insurance to close the transaction.
Failing to check for liens and encumbrances. Inherited property may have outstanding mortgages, tax liens, judgments, or other encumbrances. These don’t disappear when the owner dies — they attach to the property. A title search before you accept the transfer can prevent unpleasant surprises.
DIY deed preparation. Alabama deed law has specific requirements for legal descriptions, granting language, and recording formalities. A deed that is incorrectly prepared may not effectively transfer title, creating problems that surface years later when you try to sell or refinance. The cost of having an attorney prepare the deed correctly is minimal compared to the cost of fixing a defective transfer.
Tax Implications of Inherited Property in Alabama
When you inherit property, you receive a “stepped-up basis” — meaning the property’s tax basis is reset to its fair market value at the date of the previous owner’s death. That’s a big deal. If the property has appreciated substantially during the prior owner’s lifetime, the stepped-up basis eliminates capital gains tax on that entire appreciation.
For example, if your parent purchased a home in 1985 for $80,000 and it is worth $350,000 at the time of their death, your tax basis is $350,000 — not $80,000. If you sell the property for $360,000, your taxable gain is only $10,000.
Alabama doesn’t impose a state estate tax or inheritance tax, which is another advantage for Alabama residents inheriting property. Federal estate tax may apply to very large estates, but the current exemption is $15 million per individual (under the One Big Beautiful Bill Act, with inflation adjustments starting in 2027), so this affects very few families.
If you plan to sell inherited property, the timing of the sale and the stepped-up basis calculation matter. We recommend consulting with both an estate planning attorney and a tax professional before selling.
How to Prevent This Problem for Your Heirs
If you own property in Alabama, the best thing you can do for your heirs is keep them out of probate court. A revocable living trust, with the property properly titled in the trust’s name, allows your successor trustee to transfer the deed in days — not months or years.
If a trust is not appropriate for your situation, at minimum ensure your deeds include right of survivorship language where applicable, your beneficiary designations on financial accounts are current, and your will clearly identifies who receives each piece of real property.
An hour of planning now saves your family months in court, thousands in legal fees, and the stress of dealing with a bureaucratic process while they’re grieving.
Get Help With an Alabama Property Transfer
If you’ve inherited property and need to get the deed sorted out, or you want to set up a plan so your family never has to deal with this process, give us a call. We’ve been handling Alabama property transfers and estate planning for over 30 years.
Call (251) 517-7507 to schedule a consultation, or complete our client questionnaire to get started.
We serve clients in Fairhope, Daphne, Gulf Shores, Mobile, Baldwin County, and throughout Alabama, Florida, and Mississippi.
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Jerry Taylor Law, PLLC | Fairhope, AL 36532 | (251) 517-7507 | jerry@jerrytaylorlaw.com