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Selling an Inherited House in Huntsville: Probate, Heirs and Taxes

When someone dies and leaves a house, families face grief, paperwork and a property that still needs care, all at once. This guide covers what to do first, who can sell, how probate works in Alabama, and the tax rule that matters most to heirs.

Reviewed October 31, 2026 by George Lensch, broker, Wyze Realty. General information about Alabama, not legal, tax or financial advice.

Help With an Inherited Home, at Your Pace

We can give a market value opinion as of the date of death, help secure and prepare the house, coordinate with the personal representative and probate attorney, and give every heir the same information. No pressure to decide quickly.

Schedule a Confidential Call Call or Text (256) 808-6861

This Guide Is General Information, Not Legal or Tax Advice

Wyze Realty is a real estate brokerage. We are not a law firm, CPA, lender or housing counselor, and we cannot tell you what to do about your specific legal, tax or financial situation. Talk to an Alabama probate attorney about authority to sell and to a CPA about basis and taxes; we handle the real estate side and refer the rest.

Laws, deadlines and programs change, and the right answer depends on your documents and facts. Nothing here guarantees a result, a price or a timeline. We cite our sources at the bottom so you can check them.

If You Only Read One Section

There is rarely a reason to rush the house. There are good reasons to protect it, learn how it was owned, and get the right professional involved early. In plain terms:

Protect the house first. Lock it, keep the utilities and insurance in force, and check on it every week. A small leak in an empty house becomes a large bill fast.
Find the deed and the will. How the house was titled, and whether there is a will, decide who can sell it and whether probate is needed.
Talk to an Alabama probate attorney. Ask whether the estate needs probate, who should serve as personal representative, and whether the sale will need court approval.
Pin down the date-of-death value. For most heirs, the federal step-up in basis means little or no capital gain if the house sells near that value. An appraisal is the strongest record.
Decide together: sell, keep or rent. Give every heir the same numbers at the same time. Most family conflict over a house starts with someone feeling left out.

The rest of this guide explains each step, with Alabama law cited so you can check it yourself. Deeper guides in this series cover how probate works in Alabama, selling during probate, heirs who disagree, the death of a spouse, heirs who live out of state, taxes on an inherited house and caring for a vacant house.

The First 30 Days: Protect the House

In the first weeks, most families are planning a service, notifying relatives and simply getting through each day. The house can wait for decisions, but it cannot wait for care. A vacant house can attract break-ins, and plumbing or roof problems go unnoticed when no one is living there.

Secure it. Lock every door and window and collect the keys. If many people had keys, consider changing the locks.
Keep utilities on. Power, water and heat protect the house and are needed for any showing or appraisal.
Call the insurance agent. Report the death and ask how the policy treats a home no one is living in. Get the answer in writing. A personal representative can insure estate assets without a separate court order (Ala. Code 43-2-843).
Keep paying what you can. The mortgage, property taxes and insurance do not stop. Keep receipts; whoever pays may be able to be repaid from the estate, but agree on that in writing.
Do not give away or sell contents yet. Until someone has legal authority, moving property out can cause family conflict and legal problems.
Reverse mortgage? Call the servicer right away. Those loans have their own deadlines. See our reverse mortgage guide for heirs.

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Who Has the Right to Sell?

The answer depends on how the house was titled and whether there was a will. Pull a copy of the recorded deed first. Deed records are kept by the probate office in the county where the land is located, and a title company can also pull it.

How it was owned	What usually happens
Joint owners, deed says "with right of survivorship"	The surviving owner generally owns the whole house. Survivorship must be stated in the deed in Alabama (Ala. Code 35-4-7). The survivor usually records proof of death and can then sell, often without probate for the house.
Joint owners, no survivorship wording	Each owner generally holds a share, like tenants in common. The deceased owner's share passes under the will or to the heirs, so probate or another proper process is usually needed for that share. This includes many married couples.
Owned by a trust	The successor trustee usually manages and sells it under the trust's terms, often without probate for the house.
In the deceased person's name alone, with a will	The will is probated and the court appoints the executor. Whether the executor needs separate court approval to sell depends on whether the will expressly authorizes it (Ala. Code 43-2-844).
In the deceased person's name alone, no will	Title passes to the heirs set by Alabama law, subject to administration (Ala. Code 43-2-830). An administrator is appointed through probate and generally needs court approval to sell, or in some cases every heir signs the deed.
Heirs property (passed down without probate)	Many relatives may own fractional shares. Alabama's heirs property law gives co-owners special protections, including a buyout right.
Sold or deeded away before death	Generally not part of the estate. Confirm the deed was recorded.

Alabama Does Not Have a Transfer-on-Death Deed

Some states let an owner record a deed that passes a house at death without probate. Published surveys and the American Bar Association's 2025 list of states that have adopted the uniform act do not include Alabama, and we found no Alabama statute allowing one for real estate. If someone tells you a parent "filed a beneficiary deed," ask an Alabama attorney to look at what was actually recorded.

Not sure which row fits? The tool below walks through it.

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Want help reading the deed or figuring out next steps on the real estate side? Call (256) 808-6861 or schedule a confidential call. There is no cost and no obligation.

How Probate Works in Alabama

Probate is the court process that confirms a will (or the lack of one), appoints someone to manage the estate, gives creditors a chance to be paid, and then passes what is left to the right people. In Alabama it is handled by the probate court in the county where the person lived at death (Ala. Code 43-8-162). For a nonresident who owned Alabama property, it is generally the county where the property is located.

File the will or a petition. A will must be filed for probate within five years of the death, or it is not effective (Ala. Code 43-8-161). With no will, someone petitions to be appointed administrator.
The court issues letters. An executor named in the will receives letters testamentary. With no will, an administrator receives letters of administration. If the named executor cannot serve, the court can issue letters of administration with the will annexed.
A bond, unless waived. Alabama generally requires the personal representative to post a bond. A will can expressly waive it, but the court can still require one if the estate appears at risk (Ala. Code 43-2-851).
Notice to creditors. Within 30 days of the grant of letters, notice is published once a week for three weeks in a county newspaper, and known creditors get notice by mail (Ala. Code 43-2-60, 43-2-61).
Inventory. Generally within two months of appointment, listing assets at date-of-death values (Ala. Code 43-2-835). A will can excuse filing it with the court.
Claims period runs. Most claims must be filed within six months after letters, or five months after first publication, whichever is later (Ala. Code 43-2-350).
Sell or distribute the house. With the will's authority or court approval (Ala. Code 43-2-844).
Close the estate. Debts, taxes and expenses are paid and the rest is distributed.

Because of the claim period, even a simple estate usually takes at least six months. The Limestone County probate handout says the same. Many simple estates take six to twelve months; contested ones or estates that need a court-ordered land sale often take longer. These are typical ranges, not promises. The full walkthrough is in Probate in Alabama, Step by Step.

For questions about filing, contact the probate office in the county where your loved one lived. Staff can explain procedures, but they cannot give legal advice.

Who Inherits When There Is No Will

Alabama's intestacy statutes decide who inherits when there is no valid will. A surviving spouse's share depends on who else survives (Ala. Code 43-8-41):

Who else survives	Surviving spouse generally receives
No descendants and no parent of the deceased	The entire intestate estate
No descendants, but one or both parents	The first $100,000 in value, plus one-half of the balance
Descendants, all of whom are also the spouse's	The first $50,000 in value, plus one-half of the balance
Descendants, one or more of whom are not the spouse's	One-half of the intestate estate

Whatever does not go to the spouse (or everything, if there is no spouse) passes in this order (Ala. Code 43-8-42): the deceased person's children and other descendants; then parents; then brothers, sisters and their descendants; then grandparents and their descendants, split between the two sides of the family. An heir must outlive the deceased by five days to inherit (Ala. Code 43-8-43), relatives of the half blood can inherit (Ala. Code 43-8-46), and if there are no heirs at all, the estate passes to the State (Ala. Code 43-8-44).

A surviving spouse and minor or dependent children may also receive allowances that come ahead of most creditors. As of October 2026, those are a homestead allowance of $18,800, exempt property of $9,400 and a family allowance of up to $18,800, with adjusted amounts of $20,475, $10,225 and $20,475 for claims made on or after April 1, 2027 (Ala. Code 43-8-110 through 43-8-116 and the State Treasurer's adjustment table). More in When a Spouse Dies.

The Small Estates Law Changed in 2025

Alabama rewrote its small estates law effective October 1, 2025 (Act 2025-431, the Revised Alabama Small Estates Act). The old $25,000 cap is gone; the limit now equals the combined family allowances, currently $47,000, and scheduled to be $51,175 for claims on or after April 1, 2027 based on the Treasurer's adjustment. Any person entitled to an interest in the estate may now petition, no bond is required, notice must be published and sent to the Alabama Medicaid Agency, and the court waits at least 30 days after each before ordering distribution.

The statute still describes the small estate as personal property, so it is generally not a path for passing a house. If the estate is small apart from the house, ask a probate attorney or the probate court whether any part of it helps you.

Selling the House During Probate

Families are often surprised to learn they can usually sell before probate is finished. What matters is who has authority to sign, and what the buyer's title company will insure. Three common paths:

Path	When it fits	What to expect
The will authorizes the sale	The will expressly gives the executor power to sell real estate	Once letters are issued, the executor can generally list and sign without a separate court order (Ala. Code 43-2-844).
Court approval	No will, or the will is silent	The personal representative's attorney files a request, and the court approves the sale. Any interested person may contest a sworn application to sell estate land (Ala. Code 43-2-444).
All heirs sign	Every heir is an adult, can be reached and agrees	Title passes to heirs at death subject to administration (Ala. Code 43-2-830). Whether a title company will insure an all-heirs sale, and what it requires, varies. Ask the title company before you list.

A personal representative may also complete a contract to sell land that the deceased person signed before death without a new court order (Ala. Code 43-2-843). The detailed version, including the documents you will need and how we time a listing around court dates, is in Selling a House During Probate.

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The Mortgage, Debts and a Reverse Mortgage

A mortgage does not disappear at death. The lender's lien stays on the house, and the loan is paid from the sale or kept current by the heir who keeps the home. Contact the servicer to report the death and ask what options it offers for heirs. Claims that are liens on the property may still be paid to protect the asset even when other claims are late (Ala. Code 43-2-350).

The estate's assets, including the house, may be needed to pay valid claims. Who is responsible for a particular debt is a question for the probate attorney, so before paying any of the deceased person's bills from your own money, ask.

A reverse mortgage (most are FHA-insured HECMs) becomes due when the last borrower dies, and the timeline is shorter than probate. If the loan is underwater, HUD rules generally let heirs sell for at least 95% of the appraised value to satisfy it. Read Reverse Mortgage After a Parent Dies and call the servicer early.

Sell, Keep or Rent?

Choice	Consider
Sell on the open market	Usually the simplest way to divide value among several heirs. Proceeds are split after the mortgage, selling costs and estate expenses. Often brings the most money, with time for repairs and showings.
Sell as-is	Many inherited homes sell with contents and dated finishes. You trade some price for speed and less work. Compare it in writing with a market listing.
One heir keeps it	That heir buys out the others or receives the house as their share. Check the mortgage, taxes, insurance and repairs it needs.
Keep and rent	Can produce income, but someone has to manage it and the owners need to agree. A personal representative can generally lease estate property for up to one year without a court order (Ala. Code 43-2-843). Our sister company, Wyze Property Management, manages rentals around Huntsville.

Waiting has a cost. Every month the house sits, taxes, insurance, utilities, lawn care and any mortgage come out of the estate or someone's pocket. The sell, rent or keep calculator compares the long view; the calculators below show what the heirs might actually receive.

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Cash Offers and As-Is Sales

Inherited houses attract postcards, calls and door knockers. Some buyers are fair; some are wholesalers who tie up a house with a contract they intend to sell to someone else. Only a person with legal authority can sign a sales contract, so do not sign anything until you know who that is, and read our wholesaler contract warning.

If a cash offer is on the table, we will show you it next to what listing on the open market would likely net, in writing, and you choose. See selling as-is or for cash for how to compare offers.

Taxes in Brief

Step-up in basis. An heir's basis is generally the fair market value on the date of death (IRC 1014), not what the parent paid. If Mom bought the house for $80,000 decades ago and it was worth $300,000 when she died, the heirs' basis is generally about $300,000. Selling soon after near that value often means little or no gain.
Long-term treatment. Inherited property is treated as held more than one year (IRC 1223), even if you sell next month.
No Alabama estate or inheritance tax filing is required for deaths after December 31, 2004 (Alabama Department of Revenue).
Federal estate tax applies only to very large estates. As of October 2026, the basic exclusion is $15,000,000 per person for 2026 deaths (IRS Form 706 instructions).
The estate's own return. If the estate has more than $600 of gross income in a year, such as rent or a sale, it may need to file Form 1041 and needs its own EIN (IRS).

Details, including spouses and joint ownership, are in Taxes on an Inherited House. A CPA should review your numbers.

When Heirs Do Not Agree

The most common reason an inherited house sits for years is not the law; it is a family that has not had a full, calm conversation with the same facts in front of everyone. Start there. If it does not work, Alabama law gives co-owners tools:

Partition. Any co-owner can ask a court to divide the property or order it sold. A court may order a sale when the land cannot be fairly divided (Ala. Code 35-6-57).
A buyout right. When a co-owner asks for a sale, the other co-owners can ask to buy that person's interest; they must tell the court at least 10 days before trial (Ala. Code 35-6-100).
Heirs property protections. For qualifying family land, the court values the property, gives the other co-owners 30 days to elect to buy out the person who asked for a sale, prefers dividing the land in kind when it fairly can, and, if a sale is ordered, generally prefers an open-market listing with a licensed Alabama broker at no less than the court-determined value (Ala. Code 35-6A-7, 35-6A-8, 35-6A-10).

The full picture, including what a buyout looks like, is in When Heirs Disagree About the House.

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Would it help to have one calm, neutral voice explain the real estate numbers to the whole family? Call (256) 808-6861 or schedule a confidential call. There is no cost and no obligation.

Heirs Who Live Far Away, and Houses That Sit Empty

Many Huntsville-area estates have heirs in other states. A nonresident named as executor in a will can generally serve in Alabama (Ala. Code 43-2-191), but a nonresident generally cannot be appointed administrator unless already serving for the same estate in another state (Ala. Code 43-2-22). If the deceased person lived in another state and owned a house here, a will proved in that state can usually be recorded in Alabama by filing a certified copy (Ala. Code 43-8-175). See Out-of-State Heirs.

An empty house needs a weekly routine. Our vacant inherited house guide covers security, insurance questions, utilities and what it costs to hold.

Who Does What

Question	Who to ask
Does the estate need probate? Who should serve? Can we sell, and how?	An Alabama probate attorney
Filing procedures, forms and records	The probate office in the county where your loved one lived
Basis, capital gains, the estate's income tax return	A CPA or tax professional
What the title company needs to insure the sale; the closing	A title company or closing attorney
Coverage on an empty house	The homeowner's insurance agent
Reverse mortgage deadlines and payoff	The servicer, and a HUD-approved housing counselor
What the house is worth, what to fix, how to sell it, what each path would likely net	A real estate broker. That part is us.

Wyze Realty is a real estate brokerage in Huntsville. We can give a market value opinion (including as of the date of death, for your CPA and appraiser to use alongside an appraisal), help secure and prepare the house, coordinate with the personal representative, the probate attorney and the title company, and send every heir the same updates. We do not give legal or tax advice, file anything with the court, or handle title; we refer those to the right professional.

Test What You Know

A short quiz on the Alabama rules families most often ask about. Each answer explains the rule.

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Guides in This Series

Probate in Alabama, Step by Step: filing, letters, bond, creditors, inventory and timing.
Selling a House During Probate: authority, court approval and the documents a title company wants.
When Heirs Disagree: buyouts, partition and Alabama's heirs property law.
When a Spouse Dies: survivorship deeds, the spouse's share and allowances.
Out-of-State Heirs: ancillary probate and managing a sale from far away.
Taxes on an Inherited House: step-up in basis, estate tax and Form 1041.
Caring for a Vacant Inherited House: security, insurance questions and holding costs.
Reverse Mortgage After a Parent Dies: HUD deadlines and the 95% rule.

Common Questions

Can I sell a house before probate is finished in Alabama?

Often yes. Once a personal representative is appointed and has authority to sell, either under the will or with court approval (Ala. Code 43-2-844), the house can usually be listed and sold while the rest of the estate is still open. A title company will require proof of authority before closing.

Do I need probate to sell my parent's house?

Not always. If the deed had survivorship wording (Ala. Code 35-4-7) or the house was in a trust, probate may not be needed for the house. Otherwise, title passes to the heirs or devisees subject to administration (Ala. Code 43-2-830), and a buyer's title company will usually want either a personal representative with authority or all heirs signing on terms it accepts. An Alabama probate attorney can tell you which applies.

How long does probate take in Alabama?

Usually at least six months, because most creditor claims can be filed until six months after letters or five months after the first published notice, whichever is later (Ala. Code 43-2-350). Six to twelve months is typical for a simple estate; disputes or a court-ordered land sale can add time.

How long do we have to probate a will?

In Alabama a will is not effective unless filed for probate within five years of the death (Ala. Code 43-8-161).

Do I have to pay capital gains on an inherited house?

Generally only on gain above the value at the date of death, because of the step-up in basis (IRC 1014), and the gain is treated as long-term. Selling soon after for about that value often means little or no gain. Ask a CPA about your situation.

Does Alabama have an inheritance tax?

No. The Alabama Department of Revenue says estates with a date of death after December 31, 2004 are not required to file with Alabama. The federal estate tax applies only to estates above $15,000,000 per person for 2026 deaths.

Who pays the mortgage after someone dies?

The loan does not disappear. The estate, or the heir who keeps the home, needs to keep it current or sell. Report the death to the servicer and ask what options it offers for heirs.

Can I keep living in Mom's house during probate?

Possibly. Alabama lets the personal representative leave the house with the heir presumptively entitled to it until it is needed for administration (Ala. Code 43-2-837). Talk with the personal representative and the probate attorney so the terms are clear to every heir.

What if one heir does not want to sell?

Try to agree first, including a buyout. If that fails, any co-owner can ask a court for partition, and Alabama gives the other co-owners a chance to buy out the person asking for a sale (Ala. Code 35-6-100, and 35-6A-7 for heirs property). See When Heirs Disagree.

Do we need to clean out the house before selling?

No. Many inherited homes sell as-is with contents. Cleaning out and light repairs can raise the price, so we can show you both options and what each would likely net.

Talk It Through, Confidentially

Big decisions are easier with someone in your corner. Whether you are ready to sell, still deciding, or just need to understand your options, call or schedule a time to talk. The first conversation is free, private and comes with no obligation. If what you really need is an attorney, a CPA or a housing counselor, we will tell you that and point you in the right direction.

Schedule a Confidential Call Call or Text (256) 808-6861

Sources

Related Guides

Probate in Alabama, Step by Step

Filing, letters, bond, creditor deadlines, inventory, small estates and court approval to sell, in order.

Selling a House During Probate in Alabama

Who can sign, when the court must approve, all-heirs sales and the documents a title company wants.

When Heirs Disagree About an Inherited House

Buyouts, court approval, partition, the co-owner buyout right and Alabama's heirs property law.

When a Spouse Dies: The House, the Deed and Your Rights in Alabama

Survivorship deeds, the spouse's share with no will, family allowances, the mortgage and taxes.

Taxes on an Inherited House: What Alabama Heirs Should Know

Step-up in basis, no Alabama estate tax, the 2026 federal exemption, Form 1041 and records to keep.

Reverse Mortgage After a Parent Dies: A Guide for Heirs

HUD notice rules after 2022, the 95% rule, deed in lieu, non-borrowing spouses and selling an HECM home.

Caring for a Vacant Inherited House

Who is responsible, insurance questions, utilities, security, a weekly check and what holding costs.

Sell As-Is or for Cash

Listing as-is vs. cash buyers and how to compare offers side by side.

Wyze Realty LLC, Huntsville, Alabama. Information on this page is general and educational, is not legal, tax, financial or credit advice, and may not reflect the most current law. Consult an Alabama attorney, CPA or HUD-approved housing counselor about your situation. All real estate services are provided in accordance with the Fair Housing Act.