If a loved one passes away and their property was set up with a Lady Bird Deed, also known as an enhanced life estate deed, you may be wondering what happens next. Processing a Lady Bird Deed after death is fairly simple. Still, in Rhode Island, there are a few important steps to take to ensure the property title is properly updated.
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Understanding a Lady Bird Deed
A Lady Bird Deed, also called an enhanced life estate deed, is an estate planning tool that allows someone to keep control of their property during their lifetime while naming beneficiaries who will automatically inherit it when they pass away.
The original owner, called the life estate holder, keeps full rights to live in, sell, refinance, or change the property while they are alive. When they pass away, ownership automatically transfers to the remainder beneficiaries, usually their children or other loved ones, without going through probate.
Read: What is a Lady Bird Deed?
What to Do After the Property Owner Passes Away
When someone passes away with a Lady Bird Deed in place, the transfer of property happens automatically. In most cases, there is no need to go through probate or record a new deed to transfer ownership. The property title simply shifts to the beneficiaries named in the Lady Bird Deed.
However, if you live in Rhode Island, there is an important next step. You must file an estate tax return to officially remove the deceased person’s name from the property title.
This filing ensures the state’s records are accurate and that the title properly reflects the new ownership. Without this step, issues could arise later if the new owners plan to sell, refinance, or transfer the property.
Why Updating the Title Matters
Even though the Lady Bird Deed simplifies inheritance, it is still essential to make sure all post-death paperwork is handled correctly. Leaving the deceased person’s name on the title can lead to complications in future transactions or delays in settling other estate matters.
By filing the necessary estate tax return and updating the title, beneficiaries protect their ownership rights and maintain a clear record of the property transfer.
Get Legal Guidance After a Loved One’s Passing
While a Lady Bird Deed can make things easier, understanding what to do with a Lady Bird Deed after death can still feel confusing, especially if you are managing an estate for the first time.
At McCarthy Law, our Rhode Island estate planning attorneys help families handle every step of this process, from filing the right paperwork to ensuring the property title is updated correctly. We also help clients create Lady Bird Deeds as part of a comprehensive estate plan to simplify the transfer of real estate and avoid probate.
If you have questions about what to do with a Lady Bird Deed after death in Rhode Island, contact McCarthy Law today for trusted guidance and peace of mind.
About the Author
Attorney Daphne Hamilton is a compassionate Rhode Island estate planning and probate lawyer dedicated to helping families plan for the future and navigate the legal process after a loved one’s passing. At McCarthy Law, she works closely with clients to create thoughtful estate plans, guide them through probate administration, and ensure every transition is handled with care.
Help is Available
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