Estate planning rules in Rhode Island
Key takeaway
Rhode Island estate planning rules address will execution, inherited real estate, trust administration, powers of attorney, guardianship and estate taxation. For owners of businesses, real estate and private investments, their spouses and adult children, Rhode Island rules also address small personal property estates and account beneficiary designations.
Wills, intestacy and small estates
Rhode Island's ordinary will execution provision calls for the testator's signature or acknowledgment before at least two witnesses present at the same time. Rhode Island's witnesses attest and subscribe in the testator's presence.
Rhode Island real estate of inheritance owned by a person who dies intestate as to that property descends in equal portions to kindred in a statutory order.
Rhode Island's small estate provision covers an estate consisting entirely of personal property with a total value that does not exceed $15,000, excluding tangible personal property the decedent owned.
Trustees, powers of attorney and guardianship
Rhode Island's prudent investor statute calls for a trustee to invest as a prudent investor would in light of the trust's purposes, terms, distribution requirements and circumstances. Rhode Island's standard includes reasonable care, skill and caution.
Rhode Island judges individual investment decisions in the context of the whole trust portfolio and an overall investment approach with risk and return objectives suited to the trust.
Rhode Island recognizes a statutory short form power of attorney when the document is in writing, is duly acknowledged by the principal and contains the exact wording of clause First. Multiple agents under Rhode Island's statutory short form act jointly unless the principal specifically provides for separate action.
Rhode Island law bars appointment of a guardian or limited guardian if the proposed ward's needs are being met or can be met by a less restrictive alternative. A decision-making assessment tool accompanies each Rhode Island guardianship petition. Rhode Island's probate court may excuse the assessment tool on a petition for temporary guardianship in extraordinary or emergency circumstances.
Account and securities beneficiary designations
Rhode Island law provides that a will does not alter a right of survivorship arising from an account's express terms or a payable on death (POD) designation. A POD designation on a Rhode Island multiple-party account without a right of survivorship is ineffective. A tenancy in common designation establishes that a Rhode Island account is without survivorship.
Rhode Island securities registered in beneficiary form pass to beneficiaries who survive all owners. Surviving beneficiaries of Rhode Island securities registered in beneficiary form hold as tenants in common. Rhode Island securities registered in beneficiary form pass to the owner's estate if no beneficiary survives all owners.
Estate tax filings and property liens
Rhode Island's estate tax return and full payment are due nine months after the date of death.
Rhode Island's statutory estate tax lien attaches to Rhode Island real estate and certain securities. Discharge of Rhode Island's lien is conditioned on filing the estate tax return and paying all taxes and fees.
Rhode Island Form T-77 is filed in triplicate with the Rhode Island estate tax return when the decedent had any interest in Rhode Island real property or another interest located in Rhode Island.
A Rhode Island waiver may allow the sale of Rhode Island securities, including Rhode Island incorporated stock, state and municipal bonds, and mutual funds organized as business trusts doing business in Rhode Island. Thresholds and rates change. Check the state's own current figures.
Thresholds and rates change. Check the state's own current figures.
Common questions
What liability applies to a Rhode Island voluntary administrator?
Rhode Island law places liability on a voluntary administrator of a small estate as an executor in the administrator's own wrong to persons aggrieved by the administration of the small estate.
How does a dispute affect payments from a Rhode Island account?
A Rhode Island depository institution that receives written notice, or otherwise has reason to believe a dispute exists concerning the parties' rights, may refuse without liability to make payments under the account terms.