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Rhode Island Living Trust Form (Revocable)

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Updated September 23, 2024

A Rhode Island living trust is a document used to place a person's assets into a trust for the benefit of designated beneficiaries. In addition to averting the probate process, a living trust allows the grantor to terminate the trust at any time and otherwise retain control over how the trust is managed by a trustee.

Requirements (2)

  1. Designated Trustee: The person to whom the trust property is to be transferred must be designated as the custodial trustee.[1]
  2. In Writing: The trust must be created in writing, whether by a written transfer of property to the trustee or by a written declaration in which the property is described and the trustee is designated.[2]

Registration

If real property is transferred into a trust, or if real property in a trust is mortgaged, the trust instrument or a memorandum of trust must be recorded with the town clerk or recorder of deeds in the jurisdiction where the property is located.[3]

Laws

Amending/Revoking – The grantor may terminate their trust by delivering a written and signed declaration of the termination to the trustee.[4]

Bond Requirement – Unless otherwise called for by the trust instrument, the beneficiary, or a court order, the trustee is not required to put forward a bond.[5]

Certification of Trust – An affidavit or memorandum of trust, which includes the names of the grantor and trustee, a description of the trustee’s powers, and other pertinent information, may be recorded in connection with the creation or revocation of a trust.[3]

Co-Trustees – Rhode Island state law allows for the appointment of multiple trustees.[6] When designating a trustee, the grantor may also designate a successor trustee to manage the trust if the first designated trustee declines, resigns, or is incapacitated.[7]

Contesting a Trust – An action against the trustee for accounting or breach of duty must be commenced within two years of having received the final account or within three years after the termination of the trust.[8]

Costs Related to the Trust – The trustee may only incur reasonable and appropriate costs in investing and managing trust assets.[9]

Jurisdiction – A trust created in another state, if it is subject to laws that are “substantially similar” to those governing trusts in Rhode Island, is governed by the laws of that state and may be enforced in Rhode Island.[10]

Oral Trusts – Rhode Island state law does not explicitly recognize oral trusts as valid.

Pet Trusts – A trust may be created to provide for the care of one or more animals that are alive during the grantor’s lifetime. The trust terminates upon the death of the last surviving animal.[11]

Signing Requirements – Rhode Island state law does not explicitly require that a trust be signed in order to be valid.

Spendthrift Provision – Spendthrift provisions that establish restraints on the voluntary and/or involuntary transfer of interests in a trust are considered valid.[12]

Trustee’s Compensation – After each calendar year, the trustee may charge reasonable compensation for fiduciary services performed during that year.[13]

Trustee’s Duties – The trustee is required to adhere to the prudent investor rule, wherein they shall duly consider the purposes and terms of the trust before making investment decisions and do so only in the interests of the beneficiaries.[14]

Trustee’s Powers – Acting in a fiduciary capacity, the trustee is empowered to collect, manage, invest, and reinvest trust property.[15]

Sources

  1. § 18-13-3(a)
  2. § 18-13-2
  3. § 34-4-27(a)
  4. § 18-13-2(e)
  5. § 18-13-14(3)
  6. § 18-2-2
  7. § 18-13-2(g)
  8. § 18-13-16(a)
  9. § 18-15-7
  10. § 18-13-19(b)
  11. § 4-23-1(a)
  12. § 18-9.1-1
  13. § 18-13-14(2)
  14. § 18-15-2(a)
  15. § 18-13-7(c)