Transfer-on-Death Deed

TRANSFER ON DEATH DEED -- RHODE ISLAND

STATUS: NOT AUTHORIZED FOR REAL PROPERTY

IMPORTANT NOTICE

Rhode Island does NOT currently permit Transfer-on-Death (TOD) Deeds for real estate. As of April 2026, there is no enacted statute in Rhode Island authorizing the transfer of real property via a TOD deed. Legislation based on the Uniform Real Property Transfer on Death Act has been introduced, with a bill passing the Senate in 2024, but the Act has not been fully enacted.

TABLE OF CONTENTS

1. Current Legal Status
2. Pending Legislation
3. What Rhode Island Does Allow
4. Alternatives for Real Property Transfer
5. Comparison of Alternatives
6. Practitioner Checklist

SECTION 1 -- CURRENT LEGAL STATUS

Rhode Island permits Transfer-on-Death (TOD) designations for securities only under R.I. Gen. Laws 7-11.1-1 et seq. (Uniform Transfer on Death Security Registration Act). This covers stocks, bonds, and brokerage accounts.

Rhode Island does not permit:

• Transfer-on-Death deeds for real property
• Beneficiary deeds for real property
• Any nontestamentary deed instrument that transfers real estate upon death

SECTION 2 -- PENDING LEGISLATION

The following bills to enact the Uniform Real Property Transfer on Death Act have been introduced in Rhode Island:

SECTION 3 -- WHAT RHODE ISLAND DOES ALLOW

3.1 -- TOD for Securities

Under R.I. Gen. Laws 7-11.1-1 et seq., securities may be registered in beneficiary form using TOD designations. Upon the owner's death, securities pass directly to the named beneficiary without probate. A TOD security transfer is not considered an asset of the decedent's estate subject to probate (R.I. Gen. Laws 7-11.1-10).

3.2 -- POD for Bank Accounts

Rhode Island permits payable-on-death (POD) designations on bank accounts.

3.3 -- Lady Bird Deeds

Rhode Island recognizes Lady Bird deeds (enhanced life estate deeds with retained power of appointment) as an alternative estate planning tool for real property.

SECTION 4 -- ALTERNATIVES FOR REAL PROPERTY TRANSFER

Alternative 1: Lady Bird Deed (Enhanced Life Estate Deed)

Description: The property owner transfers the property to a beneficiary while retaining a life estate AND a retained power of appointment. Upon death, the property passes to the remainder beneficiary without probate.

Advantages:
☐ Avoids probate
☐ Owner retains full control during lifetime (including the power to sell or revoke)
☐ Does not require beneficiary's consent for any action during lifetime
☐ May preserve Medicaid eligibility in some circumstances

Disadvantages:
☐ Requires careful drafting
☐ Some title companies may be unfamiliar with this instrument
☐ Does not fully protect against Medicaid estate recovery

Alternative 2: Revocable Living Trust

Description: The property owner transfers the real property into a revocable living trust. Upon death, the trustee distributes the property per the trust terms without probate.

Advantages:
☐ Avoids probate entirely
☐ Privacy (trust documents are not public record)
☐ Allows complex distribution plans
☐ Incapacity planning provisions

Disadvantages:
☐ Higher cost to establish
☐ Requires retitling property into the trust
☐ Ongoing administration

Alternative 3: Joint Tenancy with Right of Survivorship

Description: The property owner adds the intended beneficiary as a joint tenant with right of survivorship.

Statutory Authority: R.I. Gen. Laws 34-3-1

Advantages:
☐ Simple and inexpensive
☐ Automatic transfer at death

Disadvantages:
☐ Immediate transfer of present ownership interest
☐ Exposes property to joint tenant's creditors
☐ May trigger gift tax consequences
☐ Loss of full control

Alternative 4: Tenancy by the Entirety (Married Couples)

Description: Married couples in Rhode Island may hold real property as tenants by the entirety with automatic survivorship.

Advantages:
☐ Automatic transfer to surviving spouse
☐ Creditor protection from individual debts

Disadvantages:
☐ Available only to married couples
☐ Does not address transfer after both spouses die

Alternative 5: Last Will and Testament

Description: The property passes through probate under the owner's will.

Advantages:
☐ Simple to create
☐ Owner retains full control

Disadvantages:
☐ Requires probate administration
☐ Public record
☐ Subject to delays and costs

SECTION 5 -- COMPARISON OF ALTERNATIVES

SECTION 6 -- PRACTITIONER CHECKLIST

☐ Confirm TOD deed legislation has not been enacted (check 2026 session status for S 0141 and H 7284)
☐ Assess client's estate planning goals and property holdings
☐ Evaluate whether a Lady Bird deed is appropriate for the client's situation
☐ If Lady Bird deed selected, draft deed with retained life estate AND retained power of appointment
☐ If revocable trust selected, prepare trust agreement and deed transferring property to trust
☐ If joint tenancy selected, prepare and record new deed with survivorship language
☐ Advise client on Rhode Island estate tax (R.I. Gen. Laws 44-22-1.1; exemption amount indexed annually)
☐ Advise client on Medicaid estate recovery implications
☐ Record any deeds with the city or town recorder of land evidence
☐ Document client's informed decision regarding chosen alternative

SOURCES AND REFERENCES

• R.I. Gen. Laws 7-11.1-1 et seq. -- Uniform Transfer on Death Security Registration Act (securities only)
• R.I. Gen. Laws 34-3-1 -- Joint Tenancy
• R.I. Gen. Laws 33-24-1 -- Voluntary Administration (small estates)
• R.I. Gen. Laws 44-22-1.1 -- Rhode Island Estate Tax
• S 2027 (2024 Session) -- Proposed Uniform Real Property Transfer on Death Act (passed Senate)
• S 0141 (2026 Session) -- Proposed URPTODA
• H 7284 (2026 Session) -- Proposed URPTODA
• Senator Dawn Euer, Press Release (March 27, 2024) -- URPTODA support
• Nolo, "Avoiding Probate in Rhode Island" (2024)
• Uniform Real Property Transfer on Death Act (2009), Uniform Law Commission