Category: Probate

Banks often mishandle joint accounts when a spouse dies, even when the account is clearly set up as joint tenants with right of survivorship (JTROS). Under Alabama’s multiple‑party account statute, funds in a survivorship account belong to the surviving party at the instant of death, by operation of law, and are not part of the probate estate. When a bank freezes a true survivorship account until “probate clears it,” the widow can be locked out of her own money for weeks without any legal necessity.

Legitimate freezes can occur if the account is not actually titled with survivorship (for example, tenants in common or a non‑survivorship multiple‑party account) or if there is a bona fide dispute about ownership. The problem we are seeing is more basic: frontline banking staff see a death certificate, hit the “freeze” button on any joint account, and tell the widow she must open an estate or hire counsel before she can buy groceries or pay the light bill.

Because of this recurring pattern, we now coach married clients—especially older couples—to take modest precautions. Before a crisis, confirm with the bank in writing that your primary checking account is titled with rights of survivorship and keep a copy with your estate planning file. We also frequently recommend that the likely surviving spouse open a separate account in her sole name at an unrelated bank, move most of the liquid funds there as soon possible after the death of their spouse, and leave only enough in the joint account to cover automatic drafts and routine bills. That simple step can spare a widow from an unnecessary—and expensive—freeze at a very bad time. There are multiple exceptions to this generality, but the point is to carefully guard your operating funds for use during a crisis.

This is general information for Alabama families and is not legal advice for any particular situation.

In Alabama probate, an executor (personal representative) does not need to file a formal claim for administrative expenses like other creditors must do. However, there are important rules regarding timing, reasonableness, documentation, and approval of those expenses.

 Key Points About Executor Administrative Expenses in Alabama:

1. Priority of Payment

Under Ala. Code § 43-2-371, administrative expenses (including executor’s fees and expenses incurred in managing or preserving the estate) are given top priority in the order of estate payments — even before creditor claims and distributions to beneficiaries.

2. No Need to File a Creditor Claim

Executors do not need to file a claim under Ala. Code § 43-2-350 et seq. like outside creditors. Instead, they are entitled to direct reimbursement from the estate for reasonable and necessary expenses incurred in administering the estate.

3. Timing and Reimbursement

Executors can reimburse themselves from estate funds as expenses are incurred, so long as:

• The estate has sufficient liquidity.
• The expenses are reasonable, necessary, and documented.
• The executor keeps clear records and receipts.
• The probate court has not otherwise restricted disbursements.

In practice, many executors will wait until an interim or final accounting is approved by the court or agreed to by the beneficiaries, especially for larger reimbursements, to avoid disputes.

4. Court or Beneficiary Oversight

If the executor is reimbursing themselves:

• It’s best practice to either get court approval (especially in supervised administration) or
• Have beneficiary consent, especially if distributions or funds are contested.

The final settlement or accounting is where the executor must justify all administrative expenses and fees. If a beneficiary or even the court objects, the probate judge may review for abuse or excessiveness.

Need Help Navigating Executor Duties or Probate in Alabama?
At McCartha Law, we guide executors and families through the probate process with clarity and confidence. If you have questions about executor expenses, reimbursements, or how to avoid disputes with beneficiaries, we’re here to help.

Call us today at (256)270-4233 or schedule a consultation online to make sure your responsibilities are handled correctly—and your rights as an executor are protected.