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Alabama Probate Accounting: What Executors Must Report
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Alabama Probate Accounting: What Executors Must Report

Alabama probate accounting explained: the two-month inventory, what a settlement accounting must show, when beneficiaries can demand one, and how to close the estate.

By Settled Editorial

One of the core duties of an Alabama personal representative is keeping (and eventually sharing) a clear financial record of the estate. Beneficiaries and the court have a right to know what the estate held, what came in, what was paid out, and how the final distributions were calculated. An Alabama executor or administrator who fails to account properly faces court proceedings, personal liability, and possible removal.

This guide covers Alabama's accounting requirements: the two-month inventory that starts the record, what a settlement accounting must contain, when a beneficiary can demand one, and how the estate is formally closed through the County Probate Court. Pair it with the Alabama executor duties guide for the full fiduciary picture.

Why Accounting Matters

The accounting requirement is rooted in the personal representative's fiduciary duty. Under Alabama's probate code (Title 43), you must handle estate property the way a prudent person handles property that belongs to someone else and settle the estate as expeditiously and efficiently as its best interests allow (Ala. Code Section 43-2-833). Transparency is not optional.

Accounting also protects you. A well-documented record demonstrates that you followed the rules, paid debts in the correct order, respected the family allowances, and distributed assets as the will or Alabama law directed. Without records, you are exposed to claims that you mismanaged or misappropriated estate funds, and an improper act can make you personally liable for breach of fiduciary duty.

The Inventory: Your First Mandatory Filing

Before any settlement accounting is due, the personal representative must file an inventory of the property the decedent owned at death with the County Probate Court. This is required by Ala. Code Section 43-2-835.

Deadline: Within two months (60 days) after your appointment.

Contents of the inventory:

  • Each item of estate property listed in reasonable detail
  • The fair market value of each item as of the date of death
  • The type and amount of any encumbrance (mortgage, lien, or loan) on each item

In practice that means real property with a description and date-of-death value, financial accounts, vehicles, business interests, and personal property of significant value, along with any debts the estate is owed. Send a copy to any interested person who asks for it.

Newly discovered assets: If property turns up after you file, you report it on a supplementary inventory under Ala. Code Section 43-2-836. There is no fixed deadline for the supplement, but file it promptly after discovery.

Waiver by the will: If the will expressly exempts the personal representative from filing an inventory, you do not have to file the initial inventory or supplements with the court, unless the court finds the estate is likely to be wasted to the prejudice of an interested person. Many Alabama wills include this waiver alongside a bond waiver. Even when the filing is waived, build the asset worksheet anyway: you still need those date-of-death numbers to pay claims, account, and distribute.

Supervised Administration and the Settlement Accounting

Alabama administers estates through the County Probate Court, and the probate judge who grants letters also supervises the administration, the inventory, claims, and settlements. There is no separate estate-oversight officer. Alabama does not run a distinct "independent" administration track the way some states do, so the settlement accounting to the court is the central accounting event in a routine estate.

That said, the day-to-day rhythm is often informal. Under Alabama's probate code, the personal representative can carry out most administration steps without a separate court order for each one, so much of the work happens through your own recordkeeping and communication with beneficiaries. The formal reckoning comes at settlement, when you present your accounting to the court for approval before the estate closes and you are discharged. Partial or annual settlements can also be made along the way in longer or more complex estates.

What Goes in a Probate Accounting

Whether produced for the court at settlement or in response to a beneficiary's request, a proper Alabama estate accounting has four main components.

1. Beginning Value

The starting point for the accounting period: the value from the filed inventory (or the ending balance from a prior partial settlement). This ties the accounting back to the date-of-death figures.

2. Receipts

Everything the estate received during the period:

  • Cash collected from bank accounts, investment accounts, and other financial assets
  • Income earned by estate assets after death (interest, dividends, rent)
  • Proceeds from the sale of estate property
  • Insurance proceeds paid to the estate
  • Tax refunds received

3. Disbursements

Every payment made from estate funds:

  • Funeral expenses paid
  • Valid creditor claims paid (note the priority of each)
  • Court filing fees, publication costs, appraisal fees, and other administration expenses
  • Personal representative compensation and any attorney fees
  • Tax payments (final income tax, and fiduciary income tax if the estate earned income)
  • Any partial distributions made during administration

4. Distributions and Ending Balance

The assets and amounts distributed to each beneficiary, plus the family allowances (homestead allowance, exempt property, and family allowance) set aside off the top, and the balance remaining. At final settlement the accounting should reconcile to zero or close to it, supported by signed receipts from the people who received property.

When Beneficiaries Can Demand an Accounting

Beneficiaries and other interested persons are not left in the dark between the inventory and the closing. Because you are a fiduciary under Ala. Code Section 43-2-833, an interested person who believes the estate is being mismanaged can ask the County Probate Court to require a settlement or compel you to account. In practice, a written request to you is the first step, and it creates a clear record of when the demand was made.

If you refuse to account, provide a materially incomplete accounting, or appear to be wasting the estate, the court can order you to file a settlement, and it can remove you and require you to make the estate whole for any losses. This is why keeping a running, contemporaneous record from day one matters: an interested person can force the reckoning, and you want to be ready to produce it. Whether a formal accounting can be waived by all consenting adult beneficiaries in a given estate is a question to confirm with the County Probate Court, because the court still oversees the settlement.

The Final Accounting and Closing the Estate

Alabama sets a floor on how fast an estate can close. Under Ala. Code Section 43-2-501, final settlement may be made at any time after six months from the grant of letters, once the debts are paid and the condition of the estate allows it. This six-month floor is tied to the creditor claim window and is why no fully administered Alabama estate closes in 90 days.

The closing sequence runs like this:

  1. The six-month creditor claim window under Ala. Code Section 43-2-350 closes.
  2. Valid claims, expenses, and taxes are paid, and any elective share or family allowances are resolved.
  3. You prepare the settlement accounting: beginning value, receipts, disbursements, and proposed distributions, supported by your records.
  4. The court sets a hearing and gives interested persons notice.
  5. The court reviews the accounting, hears any objections, approves the settlement and final distributions, and discharges you.

Once the court approves the final settlement, your authority ends and the estate is closed. Keep your full file, including signed distribution receipts, in case a question comes up later. For the dated sequence of every milestone, see the Alabama probate timeline.

Protecting Yourself as Executor

Keep records from day one. Open a dedicated estate bank account and run every estate transaction through it. Never mix estate funds with your personal money. Keep receipts, invoices, and documentation for each transaction.

Date everything. Note when you received a claim, when you paid a bill, and when you made a distribution. Timelines drive accounting disputes.

Communicate with beneficiaries. An informed beneficiary is far less likely to ask a court to compel an accounting. A brief periodic update prevents most disputes.

Do not distribute early. Wait out the six-month claim window and address the family allowances and any elective share before major distributions. A premature distribution that leaves a valid later claim unpaid can fall on you personally.

Document difficult decisions. If you rejected a creditor's claim, negotiated a debt, or chose not to pursue an asset, write down your reasoning at the time. A contemporaneous memo is far more credible than a later explanation.

Frequently Asked Questions

Does an Alabama executor have to file an accounting with the court?

Yes. Alabama administers estates through the County Probate Court, and the personal representative files a settlement accounting for the court to review and approve before the estate closes. The inventory under Ala. Code Section 43-2-835 is a separate, earlier filing due within two months of appointment.

When can I make final settlement in Alabama?

Final settlement may be made at any time after six months from the grant of letters, once the debts are paid and the estate's condition allows it (Ala. Code Section 43-2-501). Because that six-month floor tracks the creditor claim window, careful personal representatives wait for the window to close before distributing.

What if the personal representative fails to account?

An interested person can ask the County Probate Court to compel a settlement. Because you are a fiduciary under Ala. Code Section 43-2-833, the court can order you to account and, if you mismanaged the estate, remove you and require you to repay any losses.

How detailed does the accounting need to be?

Specific enough that a reasonable person can trace every dollar in and every dollar out. Line-item detail by transaction, backed by bank statements, invoices, and receipts, is far stronger than summary totals. When in doubt, provide more detail, not less.

Related Guides

Sources

This guide is general information about Alabama probate accounting. Confirm anything that affects your situation with the County Probate Court or a licensed Alabama attorney. It is not legal advice.

Information current as of July 1, 2026

Settled Estate is not a law firm, and this content is for informational purposes only and does not constitute legal advice. Probate laws and procedures in Alabama can change. Consult with a qualified attorney for advice specific to your situation. Full disclaimer.

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