On April 30, 2026, Attorney Phil Gasbarro testified before the Rhode Island House Judiciary Committee in support of House Bill H8120, legislation intended to eliminate unnecessary estate tax filings for nontaxable estates.
The Problem: An Automatic Estate Tax Lien
Did you know that when someone dies owning real estate in Rhode Island, even if the property passes by automatic operation of law to an heir and there is no probate, there is still an “automatic estate tax lien” on the property that must be cleared by filing a 22-page Form RI-706 tax return?!
A Tax on the Right to Transfer
Even if the house goes to the surviving widow because they were “tenants by the entirety” on the deed or the children because there was a life estate deed, the family still needs to file this full 22-page form to clear the lien. Under R.I. Gen. Laws §44-23-9 estate taxes are an automatic lien on the property of a decedent for 10 years following the decedent’s date of death. And under R.I. Gen. Laws §44-22-1.1(a) this lien attaches to the estate “as a tax on the right to transfer.”
The consequences are more than inconvenience. Families can end up spending hundreds of dollars on filings for estates that owe no tax, real estate closings can be delayed, and sale proceeds may even be held back while paperwork is reviewed and lien discharges are processed. In many cases, widows and children only discover this issue years later when they are preparing to sell the property.
Often an Exercise in Futility
Most of the time, our clients first learn about this issue while preparing for a real estate closing. At that point, they are asked to gather information about the deceased person’s assets as of the date of death so that the required tax forms can be completed. Does it seem unfair that surviving spouses and children have this “red tape” to handle when they’re trying to sort out things after the death of a loved one?
And moreover, doesn’t it seem foolish that we make these family members fill out complicated tax returns for nontaxable estates—if the estate is literally nontaxable, the form comes out to zero money due every time! Isn’t this the definition of an “exercise in futility”?
Correcting the Unfairness
To work towards correcting this unfairness, Attorney Phil Gasbarro wrote a detailed letter of support and testified before the House Judiciary Committee on April 30, 2026 in support of House Bill H8120. It’s telling that all of the testimony given at the hearing was in support of this bill, and it came from attorneys and accountants—the very people that are paid by clients to file these returns! When the people who earn fees from doing the work are asking legislators to eliminate it, can there be any clearer statement about how unnecessary and futile the procedure feels?
Wouldn’t this make tax enforcement harder?
Opponents may worry that simplifying the process could reduce enforcement of estate tax laws. However, the proposed legislation is narrowly tailored to target only the automatic liens affecting real estate closings. There are still plenty of other instances where the filings will still be required for nontaxable estates (such as by judges during probate proceedings), and even if the affidavit is prepared improperly, the Division of Taxation will continue to have a lien on all the proceeds from the sale, as well as the other assets of the estate.
In fact, this process of using an affidavit to clear title for closing has been successfully used in Rhode Island for the sale of real estate by nonresidents for more than three decades! Since January 1, 1992 the Division of Taxation has allowed for the use of an affidavit to clear the automatic statutory lien for the sale of real estate by nonresidents (regulations available at 280-RICR-20-10-1.7, see also R.I. Gen. Laws §44-30-71.3).
Additionally, this proposed solution for nontaxable estates is not novel. Massachusetts has successfully used a similar affidavit process for decades to address the same issue, allowing families to clear title without requiring lengthy tax filings when no estate tax is due. This is strong evidence to suggest that concerns about reduced enforceability are not supported by the evidence.
Eliminate Unnecessary and Burdensome Paperwork
This legislation would not eliminate estate taxes, affect the state budget, or revisit longstanding public policy or political issues regarding death taxes. This proposed bill would simply eliminate unnecessary paperwork for families whose estates are clearly below the taxable threshold. Rhode Islanders dealing with the loss of a loved one should not face delays, additional expense, and complicated filings when no tax is owed in the first place.
If you believe Rhode Island families should not be required to complete lengthy estate tax filings when no tax is owed just to sell their real estate, contact your state representative and ask them to support this legislation when it is reintroduced next year. We’re close to getting this issue fixed, and with your support, we can make it happen in the next legislative session!