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Detailed Answer
1. Inventory and Appraise Estate Assets
The executor or administrator must identify every asset owned by the decedent at death, including real estate, bank accounts, investments, personal property, retirement accounts, and life insurance proceeds. Under R.I. Gen. Laws § 33-23, you must file an inventory and appraisal with the probate court. This inventory establishes the gross estate value.
2. Give Notice to Creditors
Rhode Island law requires the personal representative to notify creditors. R.I. Gen. Laws Chapter 17 sets a six-month period for creditors to submit claims. This step ensures all valid debts surface before distribution.
3. Pay Funeral Costs and Administrative Expenses
Next, pay funeral expenses and probate court fees. The court authorizes reasonable funeral costs as a priority expense. Record all payments. Administrative expenses include executor commissions, attorney fees, publication costs, and appraisal fees.
4. Settle Valid Debts in Order of Priority
After administrative expenses, pay the decedent’s valid debts—mortgages, tax liens, credit card balances, and medical bills. R.I. Gen. Laws Chapter 22 outlines the priority for paying claims. Secured debts rank above unsecured debts.
5. Account for Taxes
Rhode Island no longer imposes a state estate tax (repealed effective January 1, 2019). However, if the gross estate exceeds the federal threshold, you must file a federal estate tax return (Form 706) and pay any federal taxes due.
6. Calculate the Residuary Estate
Subtract total debts, costs, and taxes from the gross estate value. The remainder, called the residuary estate, represents assets available for distribution.
7. Distribute the Remaining Assets
If the decedent left a valid will, distribute the residuary estate according to its terms. In intestacy, follow R.I. Gen. Laws Chapter 15, which governs distribution to surviving spouses, children, and other heirs.
Helpful Hints
- Maintain detailed receipts for every expense to simplify accounting.
- File creditor claims promptly to avoid missing the six-month deadline.
- Consult a probate court clerk for local filing procedures.
- Review beneficiary designations on retirement and life insurance accounts—these pass outside probate.
- Keep beneficiaries and heirs informed to reduce confusion and potential disputes.