Estate Tax

The Estate tax is imposed upon the transfer of the net value of the assets of every decedent with actual situs (both real and personal property) in this state.

What is the Estate Tax?

Estate tax is a transfer tax on the value of the decedent’s estate before distribution to any beneficiary.

Who must file and pay Estate Tax?

If you're the Executor, Administrator or Personal Representative for the estate of someone who died, you will need to file an estate tax return.

A statutory lien is placed on all real estate property, and on interest in certain securities, located in Rhode Island. That lien cannot be discharged until an estate tax return is filed and any taxes and fees for the decedent are paid in full.

Form T-77 must be submitted along with the estate tax return to request the discharge of the lien on real property.

Form T-79 must be submitted along with the estate tax return to request the discharge of the lien on securities and any interest in corporate entities domestic to Rhode Island.

Is there a filing extension for Estate Tax?

A six-month filing extension may be granted, however and regardless of the approval status of the extension, interest and penalty will continue to accrue from the date the tax is due until the tax due amount is paid.

Requests for an extension should be filed by using Form RI-4768, found on the Estate Tax Forms webpage. A copy of the estate’s Federal request for extension (IRS Form 4768) should accompany the Form RI-4768 if applicable.

Is there a filing fee?

Yes. There is a filing fee set by statute of $50 per Estate Tax return filed. The fee is required with each original and amended Estate Tax return.

Can I make one check out to pay for multiple filings and/or extensions?

No. In order to protect taxpayers’ confidentiality and assist in processing, a separate check is required for each decedent.

When is the Estate Tax due?

The Estate Tax return is due nine months after the date of death of the decedent. Payment in full for any taxes and the filing fee payment must be made by that date.

Interest at the rate of 12% per year and penalty at the rate of 0.5% per month to a maximum of 25% will start and continue to accrue from the date the tax is due until the tax due amount is paid.

How do I determine if I have a taxable or non-taxable estate?

Any estate where the value of the gross estate is below the statutory threshold would be considered a non-taxable estate. The Threshold that creates a taxable estate are:

For decedents dying on or after 1/1/2015 with a gross estate of more than $1,500,000
For decedents dying on or after 1/1/2014 with a gross estate of more than $921,655
For decedents dying on or after 1/1/2013 with a gross estate of more than $910,725
For decedents dying on or after 1/1/2012 with a gross estate of more than $892,865
For decedents dying on or after 1/1/2011 with a gross estate of more than $859,350
For decedents dying on or after 1/1/2010 with a gross estate of more than $850,000
For decedents dying on or after 1/1/2002 and prior to 1/1/2010 with a gross estate of more than $675,000

After 01/01/2016, the taxable threshold was indexed for inflation and can be found below:

For decedents dying on or after 1/1/2016 with a gross estate of more than $1,500,000
For decedents dying on or after 1/1/2017 with a gross estate of more than $1,515,156
For decedents dying on or after 1/1/2018 with a gross estate of more than $1,537,656
For decedents dying on or after 1/1/2019 with a gross estate of more than $1,561,719
For decedents dying on or after 1/1/2020 with a gross estate of more than $1,579,922
For decedents dying on or after 1/1/2021 with a gross estate of more than $1,595,156
For decedents dying on or after 1/1/2022 with a gross estate of more than $1,648,611
For decedents dying on or after 1/1/2023 with a gross estate of more than $1,733,264

Gross Estate means the full fair market value of assets prior to any deductions. Deductions include reductions in value for items such as mortgages, debts, claims, etc.

What Return is used to file for the Estate Tax?

Beginning January 1, 2022, all estates of a decedent dying on or after 01/01/2015 are required to use the form RI-706. Prior to 01/01/2022, the return required depended on whether the value of the gross estate was above a taxable vs non-taxable estate. A taxable estate was required to file Form RI-100A. A non-taxable estate was required to file Form RI-100. If you are the executor/executrix, administrator/administratix, or personal representative for the estate of a decedent who passed after January 1, 2015, and are filing a taxable or non-taxable estate return, you will need to use the RI-706 form. Please see the line by line instructions for more details on the filing requirements.

If there is more than one executor/administrator/personal representative, you must attach an additional sheet including the full name, full address, and Social Security Number for each executor/administrator/personal representative.

Form RI-706 is modeled after Federal Form 706. For guidance in completing Form RI-706 follow the links below to the Internal Revenue Service Website.

Form 706 http://www.irs.gov/pub/irs-pdf/f706.pdf
Form 706 Instructions http://www.irs.gov/pub/irs-pdf/i706.pdf
Publication 559 http://www.irs.gov/pub/irs-pdf/p559.pdf

Due to the complexity of the estate tax, you may want to engage a qualified estate tax professional to prepare the return, or to help with estate tax questions. The signed Form RI-706 must be accompanied by:

A copy of the death certificate
A check for the filing fee in the amount of $50.00
A signed copy of Federal Form 706 (if the estate is required to file, whether or not a tax is due)
A copy of the approved federal extension (if applicable)
A copy of the approved Rhode Island extension form RI-4768 (if applicable)
A check in the amount of the tax due (if applicable)

Why Would a non-taxable estate need to file a RI-706 form?

Non-taxable estates may file an Estate Tax return for various reasons, including:

To obtain a discharge of the automatic statutory lien that attaches to all real estate a decedent owns at death
To obtain a Notice of No Tax Due for probate court purposes
To obtain a Waiver to allow the sale of Rhode Island securities, including Rhode Island incorporated stock, Rhode Island state and municipal bonds, and mutual funds organized as business trusts that do business in Rhode Island.

Non-taxable estates will only need to complete pages one, two, and a small portion of page four.

Form T-77 – Discharge of Lien Form

Form T-77 must be filed along with Rhode Island estate tax return if the decedent had any interest (Real Property or other) located in Rhode Island. This form should be filed in triplicate.

The description of the real estate must be stated as the TAX ASSESSOR’S DESCRIPTION at the date of death. This description is found on the property tax bill issued by the city or town.

“Late of” is the city/town for the decedent’s legal residence (domicile) at the time of death.

Please note:

ANY FORMS NOT PROPERLY COMPLETED WILL NOT BE PROCESSED
FORMS T-77 MUST BE TYPED AND WITHOUT ERRORS
AN ADDITIONAL/AMENDED RETURN AND A PROCESSING FEE MAY BE CHARGED FOR CORRECTIVE DISCHARGES

Form T-79 – Estate Tax Waiver Form

Form T-79 must be filed along with Rhode Island estate tax return if if the decedent had any interest in a Rhode Island security, as described above. This form should be filed in duplicate.

Please note:

ANY FORMS NOT PROPERLY COMPLETED WILL NOT BE PROCESSED
FORMS T-79 MUST BE TYPED AND WITHOUT ERRORS
AN ADDITIONAL/AMENDED RETURN AND A PROCESSING FEE MAY BE CHARGED FOR CORRECTIVE DISCHARGES

Forms

All Estate Tax forms may be found on the Estate Tax Forms webpage

Filing Options

Electronic: You may currently pay an Estate Tax debt on the Tax Portal

Mail: Complete the form and send in with payment to:

   RI Division of Taxation

   One Capitol Hill – Suite 4

   Providence, RI 02908-5802

Resources

Statute: R.I. Gen. Law § 44-22

Statute: R.I. Gen. Law § 44-23

Regulation: RI Regulation 280-RICR-20-35

Contact Us

Estate Tax Section

Email: [email protected]

Telephone: 401.574.8829 opt 8

Fax: 401.574.8914