Alabama Executor Duties and Bond Requirements: What You Need to Know

Being named executor of an Alabama estate means managing a complex administrative process under court supervision, with personal liability if you get it wrong. Before you can begin, you'll likely need to purchase a surety bond — and the cost comes directly out of the estate you're managing.

The Surety Bond Requirement

Under Alabama Code § 43-2-851, an executor must secure a fiduciary surety bond before the probate court will issue letters testamentary. The bond protects the estate's beneficiaries and creditors against mismanagement, fraud, or waste.

The required bond amount typically equals the estate's total personal property plus one year of projected real estate income. Premium costs scale with the bond amount:

The premium is paid annually for the entire duration of the probate administration. For a two-year probate on a $200,000 estate, that's $1,720 in bond costs — paid from estate assets, reducing what the beneficiaries receive.

The simple fix: If the will explicitly waives the bond requirement, the executor serves without one. This single clause saves the estate hundreds or thousands of dollars. However, local probate judges retain authority to override a bond waiver when they deem it necessary to protect minors, incapacitated heirs, or creditors.

What You're Authorized to Do

Once you have letters testamentary, Alabama law grants you specific powers — and specific restrictions.

Without court approval, you can:

• Collect and receive estate assets
• Perform pre-existing contracts the deceased had entered
• Satisfy written charitable pledges
• Pay standard administration expenses — utilities, insurance premiums, property maintenance
• Manage routine estate business

You MUST petition the court for approval before:

• Selling, mortgaging, or refinancing real property
• Executing leases longer than one year (including mineral and agricultural leases)
• Committing estate funds to major property repairs, demolition, or land subdivisions
• Abandoning worthless or burdensome estate assets
• Determining executor compensation

Exercising restricted powers without court approval exposes you to personal liability — beneficiaries can sue you for breach of fiduciary duty, and the surety bond company can pursue you for reimbursement.

Key Duties and Deadlines

File the will within five years. Alabama's strict statute of limitations voids any will not filed for probate within five years of the death. As executor, getting the original will to the county probate court quickly is your first responsibility.

Publish creditor notice. Alabama requires publishing notice to creditors in a local newspaper. Creditors then have a statutory period to file claims against the estate.

File the estate inventory. Unless the will waives this requirement, you must prepare and file a detailed inventory of all estate assets with the probate court. Counties charge per-page filing fees (Jefferson County charges $14 per inventory page).

Pay debts and taxes. Settle legitimate creditor claims and file final income tax returns for the deceased, plus any estate tax filings if applicable. Alabama doesn't impose its own estate or inheritance tax, but federal estate tax may apply for estates exceeding the federal exemption.

Distribute assets. Only after debts are paid and the statutory creditor period has expired can you distribute assets to beneficiaries according to the will.

Executor Compensation

Alabama law allows executors to claim a management fee of up to 5% of the total estate value:

• 2.5% on all assets received into the estate
• 2.5% on all assets disbursed from the estate

On a $300,000 estate, that's a maximum of $15,000. The will can waive executor compensation, and family members serving as executors often decline the fee. But for non-family executors or complex estates, the compensation is earned — probate administration in Alabama is substantial work.

County-Level Complications

Alabama's 67 county probate courts operate with significant procedural variation. Filing fees range from $50 (Mobile) to $175 (Jefferson). Some counties require minimum bond amounts regardless of the will's waiver clause. Hearing schedules, form requirements, and administrative practices differ from courthouse to courthouse.

If the deceased owned property in multiple counties, you may need to coordinate with more than one probate court — each with its own procedures and fee schedule.

Protecting Yourself as Executor

• Keep detailed records of every transaction
• Never commingle estate assets with your personal funds
• Get court approval for any action outside routine administration
• File accountings on schedule
• Communicate with beneficiaries about the timeline and process

The Alabama Basic Estate Planning Kit includes the executor duties reference, the bond waiver and inventory waiver language that should be in every will, and the county probate fee guide — designed to make the executor's job as straightforward as possible from the start.

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