Disclaimer: This article is for educational purposes and does not constitute legal advice.
Detailed Answer
When a decedent’s personal representative (executor or administrator) begins probate in Rhode Island, the court grants authority to manage estate expenses and ongoing bills. The representative must follow these steps:
- Obtain Letters and Authority: File the will (if any) and petition with the probate court. Once approved, the court issues Letters Testamentary or Letters of Administration under R.I. Gen. Laws § 33-13-3. These letters empower the representative to collect assets and pay debts.
- Open an Estate Account: Use the court-issued letters to open a dedicated estate checking account. Deposit all estate funds there and pay all expenses from this account to maintain clear records.
- Prepare Inventory and Notify Creditors: Compile a detailed inventory of the decedent’s assets and file it with the probate court. Notify known creditors and publish notice to unknown creditors to set a deadline for claims.
- Pay Priority Expenses: Certain expenses take precedence: funeral costs (up to limits in R.I. Gen. Laws § 33-23-3), taxes, insurance premiums, mortgage or rent payments, utilities, and employee wages. Prompt payment avoids penalties and liens.
- Manage Ongoing Bills: Continue payments on utilities, insurance, mortgage or rent to protect estate property. Provide service providers with the estate’s account details and a copy of the court’s letters.
- Review and Pay Creditor Claims: Evaluate claims filed by creditors. Pay valid claims in the order of statutory priority. If a claim is disputed, file an objection with the court for resolution.
- Seek Interim Distributions: If liquid assets exceed current liabilities, petition the court for interim distributions to beneficiaries. This can free up cash to cover ongoing estate costs.
- Maintain Records and Report: Keep detailed records of all receipts and disbursements. File periodic accountings with the probate court as required by R.I. Gen. Laws § 33-14-4 and § 33-14-5.
- Close the Estate: After settling debts and distributing assets, file a final accounting and petition for discharge. Once approved, the court closes the estate and discharges the representative’s duties.
Helpful Hints
- Open a dedicated estate bank account immediately after receiving Letters.
- Document every transaction with receipts, invoices, and bank statements.
- Prioritize funeral and statutory claims to prevent late-payment penalties.
- Communicate proactively with creditors and utility providers.
- Consider hiring an accountant or probate attorney for complex estates.
- Monitor deadlines for creditor claims (usually six months from first publication).
- Keep beneficiaries informed with regular status updates.