HB145 Alabama 2015 Session

Summary

Primary Sponsor

Paul Beckman

Republican

Session

Regular Session 2015

Title

Probate, inheritance, ownership of certain inter-vivos assets upon divorce or annulment

Summary

HB145 would change post-divorce asset transfers by letting a former spouse inherit certain pre-divorce revocable designations and by turning joint survivorship property into tenancy in common.

What This Bill Does

It would allow a former spouse to inherit assets designated through revocable trusts, life-insurance and retirement-plan beneficiary designations, transfer-on-death accounts, and other revocable dispositions that were put in place before the divorce. It would also sever the right-of-survivor in property held by the spouses as joint tenants at the time of divorce, converting it into equal shares as tenants in common. Additionally, it revokes revocable dispositions to the former spouse upon divorce (with some instrument-based exceptions) and provides certain protections for third parties acting in good faith, with revival rules if the divorce is nullified or remarried.

Who It Affects

• Divorced individuals in Alabama whose existing joint property and revocable dispositions would be affected by the divorce and the accompanying changes to survivorship and revocation rules.
• Former spouses and beneficiaries named in pre-divorce instruments (trusts, life-insurance/retirement designations, TOD accounts, etc.) who could gain inheritance rights or face changes to previously designated benefits and powers.

Key Provisions

• Inheritance of pre-divorce revocable designations: former spouses may inherit certain assets designated in revocable inter-vivos trusts, life-insurance and retirement-plan beneficiary designations, transfer-on-death accounts, and other revocable dispositions established before divorce or annulment.
• Severance of joint tenancies: property held as joint tenants with right of survivorship at the time of divorce becomes a tenancy in common for the former spouses, with equal shares.
• Revocation of revocable dispositions: divorce revokes revocable dispositions, powers of appointment, and fiduciary nominations to the former spouse or their relatives, unless the governing instrument provides otherwise; third parties acting in good faith before notice are protected, with liability rules after notice.
• Revival and remarriage/nullification: revocations can be revived if the divorced individual remarries the former spouse or if the divorce is nullified.
• Effective date: the act becomes effective on the first day of the third month following its passage.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Court, Probate