Huntsville Is Growing Fast. The Estate Planning Problems Are Growing With It.
Huntsville has been one of the fastest-growing cities in America for the past decade. Redstone Arsenal, NASA Marshall Space Flight Center, and a defense and aerospace industry that employs over 40,000 people have made North Alabama a destination for high-earning professionals from across the country. The Eli Lilly biomanufacturing campus, announced in 2023 with a $1 billion investment, is adding another wave of life sciences workers from the Northeast and Midwest.
These newcomers bring skills, credentials, and careers. Many also bring estate plans they had drafted in California, Texas, Tennessee, Virginia, or Florida. Most assume that a will signed by an attorney and notarized in their prior state will function the same way in Alabama.
It often does not.
Alabama has state-specific requirements for wills, trusts, powers of attorney, healthcare directives, and property ownership that differ from most states where Huntsville newcomers come from. The gaps are not always obvious until a crisis hits, at which point fixing the problem may require going to probate court, incurring significant legal fees, or watching an estate plan fail to distribute assets the way the deceased intended.
The Five Problems Most Newcomers Don’t Know They Have
1. Wills From Other States May Have Gaps
Alabama recognizes wills executed validly under another state’s law, but recognition is not the same as seamless function. Alabama courts require a will to have been signed by two adult witnesses who were present at the same time, and those witnesses cannot be beneficiaries under the will. Holographic wills (handwritten, unwitnessed) are not valid in Alabama even if they are valid in the state where they were written.
More commonly, out-of-state wills reference laws, tax provisions, or trust structures specific to another state. A California will that funds a California bypass trust, for example, may create administrative headaches in Alabama probate court. A Texas will that relies on community property characterization will simply not apply in Alabama, which is a common-law property state.
Having an Alabama attorney review an existing will takes one to two hours and costs a fraction of probate litigation.
2. Alabama’s Age of Majority Is 19, Not 18
Every state sets its own age of majority. In Alabama, that age is 19. This matters because estate plans frequently include provisions that distribute assets to children “at age 18,” transfer custodial accounts when the child reaches majority, or terminate guardianships at majority. If your documents specify age 18, Alabama courts may apply the provision literally, but the interaction between that provision and Alabama’s age of majority rules can create ambiguity.
For parents of young children, this is worth a careful review. A trust that distributes outright at 18 may align with your intent in some states but could be less protective than you realize under Alabama law.
3. Tenancy by the Entirety Does Not Exist in Alabama
Tenancy by the entirety is a form of joint ownership available to married couples in about 25 states, including Florida, Maryland, Michigan, and Pennsylvania. It provides automatic survivorship rights and, in many states, protects marital property from one spouse’s individual creditors. Many couples arriving from those states assume their property ownership structure transfers to Alabama.
It does not. Alabama does not recognize tenancy by the entirety. Alabama married couples who want joint ownership with survivorship rights must use joint tenancy with right of survivorship (JTWROS), which does not carry the same creditor protection. If a married couple purchases a home in Huntsville and titles it incorrectly, or if they own property in another state and acquire Alabama property without updating their approach, they may lose significant creditor protection advantages they had before moving.
4. Healthcare Directives and Powers of Attorney Need Alabama-Specific Forms
This is the most urgent update for most newcomers. Alabama has specific statutory forms for advance healthcare directives, living wills, and durable powers of attorney. A document executed in another state may be honored by Alabama healthcare providers as a professional courtesy, but Alabama law does not require providers to honor out-of-state forms, and in an emergency, that uncertainty can cause dangerous delays.
Alabama banks and financial institutions may also refuse to honor a power of attorney that does not comply with Alabama’s execution requirements, including specific notarization language and witness provisions. This leaves families unable to manage finances during an incapacity event.
Updating a durable power of attorney and advance healthcare directive to Alabama-specific forms takes less than a week and costs several hundred dollars. Dealing with a financial institution that refuses an out-of-state power of attorney during a medical crisis is a much larger problem.
5. Out-of-State Trusts Need Alabama Review
Revocable living trusts created in other states remain valid when you move to Alabama, but several issues arise. The governing law clause may specify another state’s law, which the Alabama courts will generally respect but which can complicate administration. If the trust holds or will hold Alabama real estate, the deed transferring that property into the trust must comply with Alabama recording requirements. If the trust names a corporate trustee who is not licensed in Alabama, a successor trustee may need to be appointed.
For people with more complex trust structures, such as irrevocable asset protection trusts, spousal lifetime access trusts, or dynasty trusts, an Alabama review is essential. Alabama’s trust statutes differ from states like South Dakota, Nevada, and Delaware where many of these structures are commonly formed.
What to Do in the First Year
Every newcomer to Huntsville with an existing estate plan should take four steps within the first year of arriving:
- Update your durable power of attorney and healthcare advance directive to Alabama-specific forms. This is the most urgent item and can be done quickly.
- Have your will reviewed by an Alabama estate planning attorney who can identify gaps specific to Alabama law.
- Review property titling on any Alabama real estate you acquire. Make sure it is titled consistently with your estate plan and correctly under Alabama law.
- Update beneficiary designations on life insurance policies, 401(k) and IRA accounts, and bank accounts. These do not pass through your will or trust and need to reflect your current family situation.
Key Law LLC serves Huntsville and the surrounding North Alabama area. A flat-fee estate plan review covers all four items in a single meeting and gives you a clear action list for any documents that need updating. If you arrived in Huntsville within the last two years and have not had your estate plan reviewed by an Alabama attorney, that review is overdue.
Why Huntsville Newcomers Are a Unique Estate Planning Client
Most of the clients who contact Key Law LLC from a Huntsville newcomer background are not starting from scratch. They have wills. They have trusts. They have powers of attorney. They did the work in their prior state and assumed, reasonably, that the documents would travel with them.
The issue is not that the documents are bad. The issue is that they were designed for a different legal environment. Alabama has its own rules, its own court system, its own recording requirements, and its own age of majority. An estate plan that functions perfectly in California can have real gaps in Alabama, not because anything was done wrong, but because the law is different here.
If you moved to Huntsville, Madison County, or anywhere in North Alabama in the last few years, the most valuable hour you can spend on your family’s financial future is a review of your existing documents with a local Alabama attorney.
Frequently Asked Questions
Does my out-of-state will work in Alabama?
Possibly, but not automatically. Alabama generally recognizes wills executed validly under another state’s law, but gaps remain. Alabama requires two adult witnesses present simultaneously, and holographic wills are not recognized. A will valid in California, Texas, or Tennessee may create ambiguity if it references laws specific to that state. Having an Alabama estate planning attorney review your documents after moving is strongly recommended.
What is Alabama’s age of majority for inheritance purposes?
Alabama’s age of majority is 19, not 18. This affects trust distribution clauses, custodial accounts, and guardianship provisions. If your documents pass assets to children at age 18, that provision may interact unexpectedly with Alabama law.
Does Alabama recognize tenancy by the entirety for married couples?
No. Alabama does not recognize tenancy by the entirety for real property. Alabama married couples use joint tenancy with right of survivorship (JTWROS) instead, which does not carry the same creditor protection as tenancy by the entirety in states that recognize it.
What happens to my out-of-state trust when I move to Alabama?
The trust remains valid, but the governing law clause, corporate trustee qualifications, Alabama real estate recording requirements, and state income tax treatment all need review. Contact an Alabama estate planning attorney to identify which aspects of your trust need updating.
Do I need to update my healthcare directive and power of attorney after moving to Alabama?
Yes. This is the most urgent update. Alabama has specific statutory forms for healthcare advance directives and durable powers of attorney. Out-of-state documents may not be honored in emergencies. Alabama banks may refuse to honor a power of attorney that does not comply with Alabama’s execution requirements.
How does moving to Alabama affect my estate taxes?
Alabama has no state estate tax and no state inheritance tax, which is favorable for most families. The federal estate tax applies at the federal level, with a current exemption of approximately $13.6 million per individual. Most Alabama families owe no estate tax at the current threshold, but income tax rules and retirement account rules change significantly when you move to Alabama.
What should I do first when I move to Huntsville?
Update your power of attorney and healthcare directive to Alabama forms, have your will reviewed, check your property titling on any Alabama real estate, and update beneficiary designations. Key Law LLC offers a flat-fee estate plan review for Huntsville newcomers that covers all four in a single session. Schedule a strategy session here.
Joshua B. Key is an estate planning and probate attorney at Key Law LLC in Huntsville, Alabama. Key Law LLC serves clients statewide on estate planning, trust administration, and probate matters. This article is for general educational purposes and does not constitute legal advice. No attorney-client relationship is created by reading this article. Contact Key Law LLC to discuss your specific situation.