How to Avoid Probate in Vermont
The legal ways to pass property outside probate in Vermont: transfer-on-death deeds, payable-on-death accounts, trusts, joint ownership and small estates.
Short answer: Non-probate transfers available in Vermont: (1) Transfer on death deed for real estate (27 V.S.A. §§ 651-660). (2) Payable-on-death bank accounts, where the balance vests in the surviving P.O.D. 27 V.S.A. §§ 651-660; 8 V.S.A. § 14205; 9 V.S.A. §§ 4351-4352; 14 V.S.A. §§ 1901-1903
| Ways to avoid probate | Non-probate transfers available in Vermont: (1) Transfer on death deed for real estate (27 V.S.A. §§ 651-660). (2) Payable-on-death bank accounts, where the balance vests in the surviving P.O.D. payees at the death of the last account holder (8 V.S.A. § 14205). (3) Transfer-on-death registration of securities in beneficiary form (9 V.S.A. chapter 134, §§ 4351 and following). (4) Vehicles titled with rights of survivorship (spouses as tenants by the entirety, joint tenants) or with a transfer on death (TOD) designation pass on a death certificate (Vermont DMV). (5) Small estate procedure (14 V.S.A. §§ 1901-1903) and waiver of administration (14 V.S.A. chapter 80). (6) Revocable living trust (Vermont Trust Code). TOD securities: https://legislature.vermont.gov/statutes/fullchapter/09/134; TOD deed: https://legislature.vermont.gov/statutes/fullchapter/27/006 |
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| Small estate affidavit | Vermont does not use an out-of-court collection affidavit. Instead, a small estate (fair market value of $45,000 or less, consisting entirely of personal property, with no real estate other than a time-share) may be opened in the Probate Division by filing a petition, a list of interested persons, the filing fee, an original death certificate, an inventory, an affidavit of paid and outstanding funeral expenses and debts, a bond without surety equal to the estate's value, and the will, if any. Interested persons who do not consent in writing have 14 days after notice to object; if none object, the court approves the fiduciary and any will without a hearing. If the estate turns out to be worth more than $45,000 at death, the fiduciary must ask the court to administer it as a regular estate. Source: 14 V.S.A. §§ 1901-1903 |
| Transfer-on-death deed | Vermont does not have a transfer on death deed statute. Instead, it recognizes the enhanced life estate deed: the owner keeps a life estate and the right to sell or mortgage the property during life without the grantee's consent, and the property vests in the surviving grantee at death, subject to recorded encumbrances. The deed must be validly executed and recorded to take effect; no acceptance or consideration is needed. It can be revoked by recording a deed from the owner to themself, or revised by recording a new enhanced life estate deed. The statute includes an optional form, and the recorded deed is subject to the property transfer tax. The Enhanced Life Estate Deed Act took effect July 13, 2020. Source: 27 V.S.A. §§ 651-660 |
More Vermont estate law
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- Who Inherits If You Die Without a Will in Vermont
- How to Make a Valid Will in Vermont
- How Probate Works in Vermont
- Living Wills and Advance Directives in Vermont
- Revocable Living Trusts in Vermont
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- Letters Testamentary in Vermont
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- All Vermont wills, probate and estate rules
FAQ
How can you avoid probate in Vermont?
Non-probate transfers available in Vermont: (1) Transfer on death deed for real estate (27 V.S.A. §§ 651-660). (2) Payable-on-death bank accounts, where the balance vests in the surviving P.O.D. payees at the death of the last account holder (8 V.S.A. § 14205). (3) Transfer-on-death registration of securities in beneficiary form (9 V.S.A. chapter 134, §§ 4351 and following). (4) Vehicles titled with rights of survivorship (spouses as tenants by the entirety, joint tenants) or with a transfer on death (TOD) designation pass on a death certificate (Vermont DMV). (5) Small estate procedure (14 V.S.A. §§ 1901-1903) and waiver of administration (14 V.S.A. chapter 80). (6) Revocable living trust (Vermont Trust Code).
What is the small estate limit in Vermont?
Vermont does not use an out-of-court collection affidavit. Instead, a small estate (fair market value of $45,000 or less, consisting entirely of personal property, with no real estate other than a time-share) may be opened in the Probate Division by filing a petition, a list of interested persons, the filing fee, an original death certificate, an inventory, an affidavit of paid and outstanding funeral expenses and debts, a bond without surety equal to the estate's value, and the will, if any. Interested persons who do not consent in writing have 14 days after notice to object; if none object, the court approves the fiduciary and any will without a hearing.
Does Vermont allow transfer-on-death deeds?
Vermont does not have a transfer on death deed statute. Instead, it recognizes the enhanced life estate deed: the owner keeps a life estate and the right to sell or mortgage the property during life without the grantee's consent, and the property vests in the surviving grantee at death, subject to recorded encumbrances. The deed must be validly executed and recorded to take effect; no acceptance or consideration is needed. It can be revoked by recording a deed from the owner to themself, or revised by recording a new enhanced life estate deed. The statute includes an optional form, and the recorded deed is subject to the property transfer tax.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.