Detailed answer — How Rhode Island handles sale proceeds when someone dies without a will
If a person dies in Rhode Island without a valid will, any money that belonged to that person at death — including leftover proceeds from a recent sale of property — becomes part of the decedent’s estate. A probate personal representative (an administrator appointed by the probate court) is responsible for collecting estate assets, paying valid debts and expenses, and then distributing what remains to heirs according to Rhode Island’s intestacy rules.
Key steps the probate court process will follow
- Identify and secure the proceeds. Funds sitting in the decedent’s bank or escrow account at the time of death are estate property unless they pass automatically by contract (for example, joint tenancy, or a pay-on-death beneficiary). The personal representative should secure the funds so they are not spent or lost.
- Appointment of an administrator. Because there is no will naming an executor, someone (usually a spouse or close family member) must petition the probate court to be appointed administrator. The court issues letters of administration that give authority to manage estate assets.
- Notice to creditors and payment of debts. The administrator must identify and notify known creditors and follow required notice procedures so claims can be presented. Valid debts, funeral expenses, and taxes get paid from estate funds before distribution to heirs.
- Inventory and accounting. The administrator prepares an inventory of assets (including the sale proceeds), pays obligations, and obtains court approval of the final accounting if required.
- Distribution to heirs under Rhode Island intestacy law. After valid debts and expenses are paid, remaining funds are distributed to heirs according to Rhode Island’s intestacy statutes.
Which Rhode Island laws govern this?
Rhode Island’s probate and intestacy rules are found in Title 33 of the Rhode Island General Laws. The intestacy provisions and the probate procedures control who inherits and how estate assets must be handled. See R.I. Gen. Laws, Title 33 for the governing statutes: https://webserver.rilin.state.ri.us/Statutes/TITLE33/. For provisions that set out who inherits when someone dies intestate, see the intestacy chapter (for example, the sections beginning at the intestacy provisions): https://webserver.rilin.state.ri.us/Statutes/TITLE33/33-1/33-1-1.HTM. For rules about appointment and duties of personal representatives, see the probate administration chapters: https://webserver.rilin.state.ri.us/Statutes/TITLE33/33-15/33-15-1.HTM.
Practical examples (hypothetical)
Example A: Jane sold a rental property and the $30,000 sale proceeds were deposited in her personal bank account. Jane then died without a will. Because the money was her asset at death and there is no beneficiary designation or joint owner, the $30,000 is estate property. An administrator will be appointed, they will use the estate funds to pay funeral costs and valid bills, and then distribute the remaining money to Jane’s legal heirs under Rhode Island intestacy law.
Example B: Tom sold a car and put the sale check into an account that named his spouse as joint owner. On Tom’s death the account may pass directly to the joint owner without probate, so the funds might not become estate assets. Whether the funds bypass probate depends on how the account or contract was titled and the bank’s policies.
What happens if no heirs can be found?
If an administrator cannot find any lawful heirs, Rhode Island law provides for eventual escheat of unclaimed intestate property to the state. The probate court will follow statutory steps before turning property over to the state.
Timing and typical duration
Probate administration in Rhode Island can take months to over a year depending on the size of the estate, creditor claims, tax issues, and whether contested disputes arise. Administrators should not distribute funds until creditor notice periods close and required approvals are obtained.
Not legal advice: This article explains general Rhode Island probate and intestacy concepts only. It is not legal advice and does not create an attorney-client relationship. For advice about a specific situation, contact a licensed Rhode Island attorney or the local probate court.
Helpful hints — practical steps if you find yourself handling leftover sale proceeds in Rhode Island
- Do not spend or transfer funds immediately. Secure them in a safe account and document where the money is kept.
- Check account title and beneficiary designations. Funds in joint accounts or with pay-on-death beneficiaries may pass outside probate.
- Obtain several certified copies of the death certificate; banks and courts typically require them.
- Contact the local probate court to learn the steps and forms for opening an estate in the applicable Rhode Island county. The Rhode Island Judiciary site is a helpful starting point: https://www.courts.ri.gov/.
- Make a written inventory of the decedent’s assets and keep receipts for any estate expenses paid from the funds.
- Give proper notice to known creditors and follow court instructions before distributing assets.
- Consider hiring a probate attorney if the estate is complex, there are disputed claims, or you do not understand how intestacy law applies to potential heirs.
- If you are a potential heir, gather documents that prove your relationship (birth certificates, marriage certificates) because the probate court will need proof of heirship.