H 8120Administration & Compliance

Taxation - Estate and Transfer Taxes - Enforcement and Collection

This bill allows smaller estates to file a statement with their municipality to discharge tax liens without complex state filings.

Held for study

Population
Affected

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Introduced Feb 27, 2026Committee House Judiciary

Plain-English Summary

This legislation simplifies the administrative process for handling smaller estates in Rhode Island after a person passes away. Specifically, for deaths occurring on or after January 1, 2027, executors, administrators, or trustees can file a sworn statement directly with the decedent's local municipality if the estate's value is too low to require a state or federal estate tax return. Once this statement is recorded by the town or city, any automatic liens on the property related to estate taxes are discharged. The bill also confirms that no filing fee is required for estate statements regarding deaths on or after January 1, 2025.

For younger readers

When someone passes away, they leave behind things like a house or money, which is called an "estate." Sometimes, the government puts a hold, called a "lien," on the house to make sure taxes are paid. This bill makes it easier for families who don't owe those taxes to remove that hold. Starting in 2027, instead of dealing with the big state tax office, they can just go to their local town hall and sign a paper saying the estate isn't big enough to owe taxes. This helps the family keep or sell the house more easily.

Who & Where It Applies

Impacted groups

Executors and administratorsHeirs-at-lawTrusteesMunicipal clerksFamilies of decedents

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

None

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Reduces administrative burdens and legal costs for working-class and low-income families settling small estates, ensuring they don't face unnecessary bureaucratic hurdles during a time of grief.
Eliminates filing fees for these estates, keeping more money in the hands of families rather than transferring it to the state government.
Streamlines the process of clearing property titles, allowing families to inherit or sell homes more quickly, which supports housing stability and community wealth transfer.
Reduces direct state tax administrator oversight on these specific filings, potentially increasing the risk of individuals falsely claiming they are exempt from estate taxes.
De-centralizes data collection by moving filings to municipalities, which might make it harder for the state to track overall wealth transfer trends for statistical analysis.
Relies on a "sworn statement" system which could be abused by unscrupulous actors to bypass proper tax scrutiny, potentially allowing some taxable wealth to escape assessment.

For Conservatives

Reduces government red tape and bureaucracy by allowing families to bypass the state tax administrator for small estates, streamlining the probate process.
Strengthens property rights by providing a faster, simpler mechanism to discharge automatic government liens on private property.
Eliminates a government filing fee, reducing the financial burden on citizens and shrinking the revenue stream of the state tax authority.
Creates a potential loophole where dishonest individuals could file false statements to evade taxes, undermining the rule of law and strict enforcement of tax codes.
Shifts the administrative burden of recording these statements onto local municipalities, potentially straining local town clerks without providing additional funding.
Removes a verification step by the state tax administrator, potentially allowing errors in estate valuation to go unchecked.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 13 additions

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.

(a) Every executor, administrator, and heir-at-law, 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.

(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.

(d) For estates of decedents with a date of death on or after January 1, 2027, an executor, administrator, or heir-at-law 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 pursuant to §44-22-1.1. Upon the recording of the statement by the municipality, any such lien pursuant to this chapter shall be discharged. 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.

(7) Notwithstanding the requirements set forth in this section, the trustee, where applicable and for decedents with a date of death on or after January 1, 2027, 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 pursuant to § 44-22-1.1 Upon the recording of the statement by the municipality, any such lien pursuant to this chapter shall be discharged.

SECTION 2. This act shall take effect on January 1, 2027.