Kyle Pacia

What Happens When You Inherit a House in Rhode Island?

Inheriting a property sounds straightforward — until you’re the one responsible for it.

Between probate court, taxes, insurance, mortgages, and family dynamics, there are several moving pieces. If you’ve recently inherited a house in Rhode Island, here’s exactly what you need to know.

1. Determine How the Property Is Titled

The first question is: How was the property legally held?

It may have been:

• In a revocable living trust

• Owned jointly with rights of survivorship

• Held in a life estate

• Owned solely in the deceased person’s name

If the property was in a trust or joint tenancy, it may transfer automatically.

If it was in the deceased’s name alone, it will likely require probate through the local Rhode Island probate court.

2. Does the Property Have to Go Through Probate?

In Rhode Island, probate is filed in the city or town where the person lived.

If required, the court will:

• Validate the will (if there is one)

• Appoint an executor or administrator

• Allow time for creditor claims

• Approve final asset distribution

Probate typically takes 6–12 months, sometimes longer if there are disputes.

Important: The property generally cannot be sold until the executor is officially appointed.

3. Protect the Property Immediately

Even before probate is complete, the home must be protected.

You should:

• Keep homeowner’s insurance active

• Notify the insurance company if the home is vacant

• Maintain heat during winter (critical in RI)

• Continue mortgage payments if applicable

• Keep property taxes current

Vacant property insurance restrictions are one of the biggest mistakes families overlook.

4. Understand Taxes (Including Step-Up in Basis)

One major financial advantage when inheriting property is the step-up in basis.

The property value resets to its fair market value as of the date of death.

Example:

• Parent bought home for $150,000

• Value at death = $500,000

• You sell for $505,000

You are taxed only on the $5,000 difference — not the original gain.

Rhode Island estate tax may apply if the total estate exceeds approximately $1.7 million (verify annually for updates).

5. What About the Mortgage?

If there is a mortgage:

• Payments must continue

• Heirs may assume the loan under federal law

• The property can be sold to satisfy the debt

Ignoring the mortgage can result in foreclosure, even during probate.

6. Should You Sell As-Is or Renovate?

Many inherited homes in Rhode Island were built decades ago and may need updates.

Before renovating, consider:

• Do you have authority to make improvements?

• Will repairs significantly increase value?

• Are you emotionally and financially prepared for the timeline?

In many cases, cleaning out the home and selling as-is is the most efficient option.

7. What If Heirs Disagree?

Disagreements are common.

Typical conflicts include:

• One sibling wants to keep the house

• One wants to sell

• One is living in the home

• Disputes over price

If co-owners cannot agree, a Partition Action can be filed in Rhode Island Superior Court to force a sale — though this is expensive and stressful.

Most families benefit from clarity and structured guidance early on.

8. Medicaid or Estate Recovery Claims

If the deceased received long-term Medicaid benefits, Rhode Island may file an estate recovery claim.

This can create a lien that must be satisfied before proceeds are distributed.

This often surprises families.

Realistically, How Long Does the Process Take?

From date of death to closing, most inherited property sales in Rhode Island take:

6–12 months, depending on probate complexity and family coordination.

The Emotional Side of Inheriting a House

This is rarely just a financial decision.

It often involves:

• Grief

• Family dynamics

• Decades of memories

• Difficult clean-outs

The legal steps are usually manageable.

The emotional ones are what require patience and thoughtful decision-making.

Final Thoughts

If you’ve inherited a house in Rhode Island, your next step is clarity — not urgency.

Understanding your:

• Legal authority

• Tax implications

• Timeline

• Options

will prevent costly mistakes and unnecessary stress.

If you’re navigating an inherited property and would like a no-pressure conversation about your options, I’m always happy to help.