Revocable Living Trusts in Vermont
How revocable living trusts work under Vermont law and the other ways to pass property without probate.
Short answer: Vermont has adopted the Vermont Trust Code (Title 14A), based on the Uniform Trust Code. A trust is created only if the settlor has capacity, indicates an intention to create the trust, the trust has a definite beneficiary (or is a charitable, animal-care or noncharitable-purpose trust)… 14A V.S.A. §§ 101, 402, 407, 602
| Revocable living trust | Vermont has adopted the Vermont Trust Code (Title 14A), based on the Uniform Trust Code. A trust is created only if the settlor has capacity, indicates an intention to create the trust, the trust has a definite beneficiary (or is a charitable, animal-care or noncharitable-purpose trust), the trustee has duties to perform, and the same person is not the sole trustee and sole beneficiary of all beneficial interests. A trust need not be in writing, but an oral trust and its terms can be proved only by clear and convincing evidence. For trusts created by instruments signed on or after the Code's effective date, the settlor may revoke or amend the trust unless its terms expressly make it irrevocable. Property transferred to the trustee passes under the trust terms without probate; assets left in the decedent's own name may still need probate in the Probate Division. Revocation: https://legislature.vermont.gov/statutes/fullchapter/14A/006 Source: 14A V.S.A. §§ 101, 402, 407, 602 |
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| 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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FAQ
How do living trusts work in Vermont?
Vermont has adopted the Vermont Trust Code (Title 14A), based on the Uniform Trust Code. A trust is created only if the settlor has capacity, indicates an intention to create the trust, the trust has a definite beneficiary (or is a charitable, animal-care or noncharitable-purpose trust), the trustee has duties to perform, and the same person is not the sole trustee and sole beneficiary of all beneficial interests. A trust need not be in writing, but an oral trust and its terms can be proved only by clear and convincing evidence. For trusts created by instruments signed on or after the Code's effective date, the settlor may revoke or amend the trust unless its terms expressly make it irrevocable. Property transferred to the trustee passes under the trust terms without probate; assets left in the decedent's own name may still need probate in the Probate Division.
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).
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.