Detailed Answer
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Administering an estate in Rhode Island involves several cost components. Understanding these factors helps you estimate the total expense before you begin probate.
1. Fiduciary Commissions
Rhode Island law entitles a personal representative (executor or administrator) to statutory commissions calculated on the estate’s gross value. See R.I. Gen. Laws § 33-23-1. Typically, the commission is up to:
- 3% on the first $50,000
- 2% on the next $100,000
- 1% on the next $250,000
- 0.5% on amounts over $400,000
These percentages apply automatically unless the court approves a different amount.
2. Attorney Fees
Probate attorneys charge for preparing documents, advising the estate, and representing the fiduciary in court. Under R.I. Gen. Laws § 33-15-10, the court must find attorneys’ fees reasonable. Hourly rates for estate attorneys in Rhode Island generally range from $200 to $350, but may vary based on complexity.
3. Court and Filing Fees
Probate filing fees include petitions to open an estate, inventory filings, and petition fees for accountings. Typical fees run from $60 to $150 per document. If you waive probate or use small‐estate procedures (for estates under $40,000), fees may be lower.
4. Bond and Surety Costs
If the will does not waive bond, the court may require a fiduciary bond to protect creditors and beneficiaries. The bond premium, set by a surety company, usually costs 1%–3% of the bond amount.
5. Appraisal and Valuation Fees
Valuing estate assets—real estate, business interests, collectibles—often requires professional appraisers. Appraisal fees for real property typically start at $300, while specialized assets may cost more.
6. Publication and Notice Costs
Rhode Island law requires notice to creditors. You must publish a notice in a local newspaper under R.I. Gen. Laws § 33-7-26. Publication costs depend on newspaper rates but often range between $100 and $300. You must also mail notices to known creditors.
7. Accounting and Tax Preparation
Preparing estate and inheritance tax returns requires a CPA or enrolled agent. Fees depend on the estate’s complexity but generally fall between $500 and $2,000. Rhode Island repealed its estate tax for decedents dying after January 1, 2019; federal estate tax may still apply.
8. Taxes and Liabilities
Outstanding debts, final income tax returns, and any federal estate taxes reduce the net estate and must be paid before distributions.
9. Miscellaneous Expenses
Other costs may include real‐estate closing fees, moving or storage of assets, bonds for guardianships if minors inherit, and courier or postage fees.
Helpful Hints
- Estimate commissions early by applying R.I. Gen. Laws § 33-23-1 to your estate’s gross value: https://webserver.rilin.state.ri.us/Statutes/TITLE33/33-23/33-23-1.HTM
- Discuss fee structures with your probate attorney before filing any documents.
- Check probate court fee schedules online or at your local Rhode Island courthouse.
- Obtain multiple appraisals for valuable or unusual items to ensure accurate valuations.
- Keep detailed records and receipts to support all expense claims against the estate.
- Consider small‐estate procedures if the entire estate does not exceed $40,000 to reduce costs.