Selling Inherited Land in Alabama

Inherited Land in Alabama: What to Know

A lot of Alabama land is owned by heirs who never put it in their own names. A parent or grandparent died, the land passed to the family, and the county still lists the old owner. Before you can sell, you need to show who the heirs are and get each one to agree.

This page covers who inherits Alabama land, when probate is needed, how Alabama's heirs property partition law works, and how taxes work when you sell. It is general information, not legal or tax advice.

Who inherits Alabama land without a will

The spouse's share is set by Code of Alabama Section 43-8-41:

• No children or other descendants and no parents: the spouse takes the whole estate.
• No descendants, but a parent is alive: the spouse takes the first $100,000 in value plus half of the rest.
• Descendants who are all also the spouse's: the spouse takes the first $50,000 in value plus half of the rest.
• Any descendant who is not the spouse's: the spouse takes half.

Heirs other than a spouse

Whatever does not go to the spouse, or the whole estate if there is no spouse, goes to the children equally, with a deceased child's share going to that child's descendants. With no descendants, it goes to the parents, then to the brothers and sisters and their descendants, then to grandparents and their families (Section 43-8-42).

Real property passes at death to the people named in the will, or to the heirs if there is no will. That is still subject to creditors, family allowances and any administration (Section 43-2-830).

Probate and small-estate options for land

A will has no effect unless it is filed for probate within five years after the death (Section 43-8-161). After that, the land generally passes as if there were no will.

Alabama's small-estate summary distribution does not help with land. The law defines the estate that qualifies as personal property of a person who owned no real property at death (Section 43-2-691, revised by Act 2025-431). If the owner had land, the family usually uses a regular probate case, or the heirs sign a deed together with proof of heirship that a title company accepts.

Probate in Alabama is handled by the probate judge in the county where the person lived. Ask that office which filings fit your situation.

Heirs property and when heirs disagree

Heirs who inherit together own the land as tenants in common. Each one holds an undivided share. The circuit court can divide the land or sell it for division when co-owners cannot agree (Section 35-6-20). In any sale for division, the co-owners who did not ask for the sale can buy out the ones who did (Section 35-6-100).

Alabama also adopted the Uniform Partition of Heirs Property Act as the Alabama Uniform Partition of Heirs Property Act (Section 35-6A-1 and following, Act 2014-299). It applies to partition cases filed on or after January 1, 2015. If the court finds the land is heirs property:

• The court sets fair market value, usually by ordering an appraisal (Section 35-6A-6).
• Owners who did not ask for a sale can buy the shares of those who did (Section 35-6A-7).
• The court orders division of the land unless that would cause manifest prejudice to the owners as a group (Section 35-6A-8).
• If a sale is ordered, the court picks the method that is best for the owners as a group: open market, sealed bids, auction or private sale (Section 35-6A-10).

Taxes when you sell inherited land in Alabama

When you inherit land, your tax basis is usually the land's fair market value on the date the owner died, not what the owner paid. This is often called a stepped-up basis. IRS Publication 551 sets the rule. An estate that files an estate tax return can sometimes use an alternate valuation date instead.

You owe federal tax only on the gain: the sale price, minus selling costs, minus your basis. If you sell soon after the death for about the date-of-death value, the gain is often small or zero. A written appraisal as of the date of death helps you prove your basis.

Inherited property counts as held for more than one year, no matter how long you actually owned it, per IRS Publication 544. So any gain gets the federal long-term rates of 0%, 15% or 20% (IRS Topic 409). The IRS says you report the sale on Form 8949 and Schedule D. Publication 559 covers the estate's own tax filings if the estate sells.

Alabama has no separate capital gains rate. The gain is part of your Alabama taxable income, taxed at 2%, 4% and 5% (Section 40-18-5; see also the Alabama Department of Revenue). Talk with a tax professional about your own facts.

Selling before or after probate

You can sign a sale contract at any time, but closing needs clear title. If a personal representative was appointed, that person usually signs for the estate as the court allows. If no estate was opened, every heir usually signs the deed, and the title company will ask for death certificates and proof of the family tree.

When there is a will that was never probated, check the five-year deadline. A will filed late has no effect, which changes who must sign.

How we buy land from heirs

EasyLotBuyer buys vacant land from heirs and estates, including land with title issues or back taxes. We make a cash offer within 24 hours. You pay no fees or commissions, and we pay the closing costs. We can close in as few as 7 days once the title is ready to transfer.

If the county says taxes are owed, they are paid at closing from the sale, so you do not need to pay them first. If the heirs are still sorting out who owns what, tell us. The title company will say what papers it needs, and we can plan the closing around that.

See our Alabama land buying page to request an offer, or read our general guide on how to sell inherited land.