For many Rhode Island estates, the family home is the largest asset.
It can also be the source of some of the most difficult practical questions: Can the executor sell it? Does everyone have to agree? Who pays the expenses? What happens to the proceeds?
The answers depend on how the property was owned, the terms of the will, the reason for the sale and the circumstances of the estate.
Start with ownership
Not every house associated with a decedent passes through probate in the same manner. The deed should first be examined to determine how title was held at death. Joint ownership, survivorship rights, trusts, life estates and other ownership arrangements can materially change the analysis.
Probate authority matters
Rhode Island law provides procedures through which a Probate Court may authorize an executor or administrator to sell estate real estate. Rhode Island's statewide probate forms include a Petition for Sale or Mortgage of Real Estate. The exact procedure depends on the circumstances and any authority granted by the will.
Why estates sell real estate
Common reasons include paying valid debts or expenses, satisfying liens, avoiding continued carrying costs, converting property to cash for distribution, dividing an estate among multiple beneficiaries, and completing administration efficiently.
The sale price is not the inheritance
This is one of the most important practical points.
If an estate sells a house for $400,000, that does not necessarily mean there is $400,000 to divide among the heirs.
In estate matters involving real property, I often have to work backward from the expected sale proceeds and account for the obligations that must be satisfied before anyone can realistically estimate the beneficiaries' net shares.
Those deductions can include mortgages, municipal taxes and liens, closing costs, brokerage commissions, repairs and maintenance, Medicaid or EOHHS claims, estate expenses, legal and fiduciary fees, and other valid obligations.
A beneficiary's expected inheritance is therefore generally based on the net estate, not the property's headline sale price.
Rhode Island's estate-tax lien can affect the property
Rhode Island imposes a statutory estate-tax lien on Rhode Island real estate owned by a decedent. An RI-706 and related tax-clearance work can therefore be relevant even when no Rhode Island estate tax is ultimately payable.
Read: Why File an RI-706 When No Rhode Island Estate Tax Is Owed?
Keep track of money advanced by family members
Frequently one family member has been carrying the property before the sale—paying insurance, utilities, taxes, cleanout costs or necessary repairs. Those amounts should be documented. They should not simply disappear into an informal calculation of what each sibling receives at closing.
Read: I Paid My Parent's Funeral and House Expenses—Can the Estate Reimburse Me?
Speak with a Rhode Island probate attorney
Attorney Mark C. Hamer assists executors, administrators and families with probate and estate administration throughout Rhode Island from his Providence office.
Learn more about Probate & Estate Administration or contact Mark to discuss the circumstances of an estate.
Official sources
- R.I. Gen. Laws § 33-19-3 — Probate Court authority concerning sale of real estate
- R.I. Gen. Laws § 33-12-6 — Sale of real estate in estate administration
- Rhode Island Secretary of State — Probate Forms
- Rhode Island Division of Taxation — Estate Tax
This article provides general information only and is not legal advice.