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H 7240Administration & Compliance

Taxation - Estate and Transfer Taxes - Enforcement and Collection

It simplifies the process for releasing estate tax liens on small estates and eliminates a fifty-dollar filing fee.

Introduced
Population
Affected
15
Email Legislator
Introduced Jan 21, 2026Committee House Finance

Plain-English Summary

This legislation modifies the process for handling estate taxes and liens for smaller estates in Rhode Island. It allows executors, administrators, heirs, or trustees to file a sworn statement with the local municipality confirming that an estate's value is low enough that it does not require a state or federal estate tax filing. Once this statement is recorded, the Division of Taxation will discharge the estate tax lien. Furthermore, the bill eliminates the fifty-dollar filing fee for these specific statements for any deaths occurring on or after January 1, 2025.

For younger readers

When a person passes away, they often leave behind things like a house or money. Sometimes, the government puts a "hold" or a lien on the house to make sure taxes are paid. This new rule makes it easier for families who don't owe those taxes to prove it. Instead of a complicated process, they can just sign a paper at their town hall. Also, starting in the year 2025, families will not have to pay the fifty-dollar fee that used to be charged for filing this paper.

Who & Where It Applies

Impacted groups
Executors and administratorsHeirs-at-lawTrusteesMunicipal ClerksEstate Attorneys
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Eliminates a regressive fifty-dollar fee for families dealing with small estates, ensuring that low-income individuals are not financially penalized during the probate process.
  • Streamlines the administrative process for releasing liens on modest properties, allowing working-class families to inherit or sell property with fewer bureaucratic hurdles.
  • Reduces the administrative bottleneck at the state level, potentially allowing state employees to focus resources on more complex tax enforcement issues.
  • Reduces state revenue collected from the filing fees, which, although likely a small amount, decreases funds available for public services and tax enforcement.
  • Relies on self-reported sworn statements regarding estate values, which could theoretically allow for evasion of estate taxes by wealthy individuals without immediate state oversight.
  • Decentralizes the recording process to municipalities, which may result in inconsistent handling or record-keeping depending on the resources of the specific town or city.
For Conservatives
  • Reduces the financial burden on citizens by eliminating a government-mandated filing fee, allowing families to keep more of their own money.
  • Protects property rights by expediting the removal of government liens on real estate, making it easier for owners to sell or transfer their property.
  • Decreases centralized state government involvement in private family matters by handling non-taxable estates at the local municipal level.
  • Still mandates that individuals file sworn statements with the government to prove they do not owe taxes, maintaining a level of bureaucratic intrusion.
  • Creates a potential loophole where dishonest actors could file false statements to bypass tax laws, undermining the rule of law and fair enforcement.
  • Shifts the administrative burden of recording these statements to local municipalities, which could be viewed as an unfunded mandate on local towns.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 19 additions · 2 deletions

SECTION 1. Sections 44-23-1 and 44-23-2 of the General Laws in Chapter 44-23 entitled "Estate and Transfer Taxes — Enforcement and Collection" are hereby amended to read as follows: 44-23-1. Statements filed by executors, administrators, and heirs-at-law Statements filed by executors, administrators, and heirs-at-law or persons in possession of real property. (a)(1) Every executor, administrator, and heir-at-law or persons in possession of real property, within nine (9) months after the death of the decedent, shall file with the tax administrator a statement under oath showing the full and fair cash value of the estate; the amounts paid out from the estate for claims, expenses, charges, and fees; and the statement shall also provide the names and addresses of all persons entitled to take any share or interest of the estate as legatees or distributees of the estate.

(2) In estates where applicable, an executor, administrator, heir-at-law or persons in possession of real property, within nine (9) months after the death of the decedent, shall file, for recording, with the municipality of the decedent’s residence, a statement under oath, stating that the value of the decedent’s gross estate does not require a state or federal estate tax filing. Upon the recording of the statement by the municipality, the division of taxation shall issue a discharge of the estate tax lien.

(b) For estates of decedents with a date of death prior to January 1, 2025, a fee of fifty dollars ($50.00) shall be paid when filing any statement required by this section. All fees received under this section are allocated to the tax administrator for enforcement and collection of taxes.

(c) For estates of decedents with a date of death on or after January 1, 2025, no fee shall be paid when filing any statement required by this section. 44-23-2. Statements filed by trustees. Whenever any person during his or her life appoints a trustee, naming that person or others as beneficiaries, and providing for the administration of the trust after his or her death, or providing for a termination of the trust and a distribution of the trust estate or any part of the trust estate at his or her death, any person acting as the trustee or any trustee of property subject to a power of appointment, shall, within thirty (30) days after the death of the creator of the trust, or within thirty

(30) days after the death of the donee of the power file with the tax administrator a sworn statement showing:

(1) The trust agreement, if any;

(2) The full and fair cash value of the trust estate;

(3) The extent of the duration of the trust;

(4) The manner provided for its termination;

(5) The names and addresses of the beneficiaries of the trust; and

(6) Any other information relating to the trust, which the tax administrator may deem necessary for the proper assessment of the tax on the estate; and

(7) Notwithstanding the requirements set forth in this section, the trustee, where applicable, within nine (9) months after the death of the decedent, shall file, for recording, with the municipality of the decedent’s residence, a statement under oath, stating that the value of the decedent’s gross estate does not require a state or federal estate tax filing. Upon the recording of the statement by the municipality, the division of taxation shall issue a discharge of the estate tax lien.

SECTION 2. This act shall take effect upon passage.