Someone died in Vermont.
Do you need probate?

Vermont's probate tracks:

Enhanced life estate ("Lady Bird") deed — recognized by 14 V.S.A. § 321(b). Vermont's descent statute expressly preserves the enhanced life estate deed, defining it as "a deed that conveys a future interest in real estate that is revocable or otherwise subject to limitation, with the transfer of the remaining title rights to take place when the grantor dies." In practice this works much like the TOD deed other states use: you deed a revocable remainder interest to your chosen beneficiary while retaining full ownership, use, and the power to sell, mortgage, or revoke during your lifetime. At death, the remainder vests in the beneficiary automatically — no probate. Because the deed is expressly recognized by statute and shielded from the anti-spousal-transfer rule of § 321(a), it is the closest Vermont equivalent to a TOD deed. Have a Vermont real estate attorney draft it, and record it at the town clerk's office for the town where the property is located.

Tenancy by the entirety (married couples). When a married couple takes title to Vermont real estate together, they generally hold it as tenants by the entirety unless the deed clearly states otherwise. Tenancy by the entirety carries an automatic right of survivorship — at the first spouse's death, the survivor owns the whole property outright. Record a death certificate at the town clerk's office; no probate is needed for that transfer.

Joint tenancy with right of survivorship (JTWROS). Property owned as joint tenants passes automatically to the surviving co-owner. Record a death certificate and an affidavit of survivorship at the relevant town clerk's office. Note that JTWROS and entirety property are still included in the Vermont gross estate for estate-tax purposes.

Revocable living trust. Vermont's preferred probate-avoidance vehicle for larger estates. A properly funded revocable trust avoids probate for all trust assets, maintains privacy, and lets the successor trustee manage assets without court involvement during incapacity and at death. A Vermont revocable trust can hold real estate in multiple towns — each trust deed is recorded at the relevant town clerk's office. At death, the successor trustee acts immediately without waiting for court appointment or the creditor period.

Vermont's town land records system — important for real estate planning

Vermont is unusual among the states in using town-level (rather than county-level) land records. There are roughly 246 towns, cities, and gores in Vermont, each with its own clerk maintaining land records. When recording a Lady Bird deed, a revocable trust deed, or any other real-property instrument, you file it at the town clerk's office for the specific town where the property is located — not the county probate division. This matters for out-of-state vacation-property owners: recording a deed for your Stowe ski condo or Woodstock farmhouse requires knowing which town the property is in.

Under Vermont's small estate procedure, the petitioner files with the Probate Division a petition to open a probate estate, a list of interested persons, the filing fee, an original death certificate, an inventory, an affidavit of paid and outstanding funeral expenses and other known debts, a bond without surety in the amount of the estate, and the will if any (14 V.S.A. § 1901(a)). An interested party who does not consent in writing gets notice and has 14 days to object; if no objection is filed, the fiduciary appointment and any will are approved without a hearing (§ 1901(b)). Letters of administration then issue under § 1902 and remain effective for one year. Two extra advantages of the small estate track: it is simpler than full administration, and it lets the estate skip the four-month published creditor-notice period that full administration requires. This is not the same as the out-of-court affidavit available in UPC states such as Massachusetts or New Hampshire.

Key Vermont estate tax facts to know:

$5,000,000 exemption; 16% flat rate. For deaths on or after January 1, 2021, Vermont exempts the first $5,000,000 and taxes the excess at a flat 16% (32 V.S.A. § 7442a). Vermont Form EST-191 must be filed within 9 months of death if the decedent had Vermont-situs property and the sum of the federal gross estate plus taxable gifts made within two years of death exceeds $5,000,000 — or if a federal Form 706 is required. Below $5,000,000, no Vermont estate tax return is due and no tax is owed.

No portability between spouses. Vermont does not allow a surviving spouse to use a deceased spouse's unused $5 million exemption. Each spouse has a separate $5 million exemption. Proper planning — typically credit-shelter or disclaimer trusts — is needed to make full use of both spouses' exemptions.

2-year gift add-back. Gifts made within 2 years of death are added back to the taxable estate for Vermont purposes. Deathbed gifting to reduce the Vermont estate tax is far less effective than planning done more than 2 years before death.

Nonresident owners of Vermont property. Vermont applies its estate tax to Vermont-situs property owned by nonresidents, apportioned based on the ratio of Vermont property to the total gross estate (32 V.S.A. § 7442a). A wealthy nonresident with a Vermont ski property should weigh Vermont estate-tax exposure even if their home state has no estate tax.

Form EST-191 is due 9 months after death. There is a 6-month extension to file only — not to pay; the tax is due at 9 months. Vermont requires a tax clearance certificate before the estate can close. See the Vermont Department of Taxes estate-tax page at tax.vermont.gov/individuals/estate-tax.

Life insurance proceeds in the estate. Life insurance owned by the decedent or payable to their estate is included in the Vermont gross estate. An Irrevocable Life Insurance Trust (ILIT) can remove life insurance from the taxable estate if established more than 3 years before death.

Vermont farmland — agricultural estates and Use Value Appraisal

Vermont's dairy and hill farms are among the most economically and culturally significant land in New England. Vermont's Current Use / Use Value Appraisal program (32 V.S.A. § 3752 et seq.) lets enrolled farmland and forestland be taxed at use value rather than fair market value — often dramatically lowering property taxes. When farmland passes through a Vermont estate, the enrollment should be maintained and transferred to the new owner to preserve the benefit. The Vermont Agency of Natural Resources administers Current Use at anr.vermont.gov/current-use. USDA Farm Service Agency program payments should also be transferred to the new operator during administration.

Out-of-state owners of Vermont vacation property

Vermont's ski resorts (Stowe, Killington, Sugarbush, Mad River Glen, Jay Peak, Bolton Valley) and scenic villages draw vacation-property buyers from across the Northeast. When a nonresident owner dies with Vermont property in their name alone, the estate needs: (1) primary probate in the home state; and (2) ancillary probate in the Vermont county where the property sits. Vermont ancillary probate follows the same court-supervised process as primary probate — filing, creditor notice, inventory, Final Accounting, and Decree of Distribution — which adds time and cost. Because there is no TOD deed, the solution is to record a Lady Bird deed (14 V.S.A. § 321(b)) at the relevant town clerk's office during life, or, for high-value ski properties, to use a revocable trust.

Vermont's distinctive intestate rules — household goods and outdoor vehicles

Household goods (14 V.S.A. § 312): On motion, the surviving spouse may receive all furnishings and furniture in the decedent's household, in addition to their distributive share. If an interested party objects, the Probate Division decides what passes, weighing factors such as the length of the marriage or civil union and the sentimental and monetary value of the property.

Vessel, snowmobile, or ATV (14 V.S.A. § 313): If an intestate estate consists principally of a vessel (boat), snowmobile, or all-terrain vehicle, title passes automatically to the surviving spouse, who may register it under 23 V.S.A. § 3816. This provision reflects Vermont's outdoor-recreation culture — for many households these are significant assets.

Spousal rights: elective share and allowances

Elective share — now one-half of the probate estate (14 V.S.A. § 319). A surviving spouse can waive the decedent's will and instead elect to take one-half of the balance of the probate estate, after payment of allowances, claims, and expenses. This is a change from Vermont's older law, which allowed only one-third — the current statute, amended in 2017, provides one-half. The spouse must be living when the election is made and generally must file the written election within four months of the later of service of the notice of rights of surviving spouse or service of the inventory (§ 319(e)). Vermont also voids voluntary transfers made during marriage primarily to defeat the surviving spouse's elective or intestate share (14 V.S.A. § 321(a)), and a spouse can waive these rights in advance by a signed written instrument (14 V.S.A. § 323).

Family allowances (14 V.S.A. §§ 316–317). The Probate Division may grant a reasonable allowance from the estate for the support of the surviving spouse and minor children during administration, and these allowances can take priority over the estate's debts.

The $125,000 Vermont homestead exemption (27 V.S.A. § 101)

Separate from probate, Vermont's homestead exemption protects a natural person's principal residence — the dwelling house, outbuildings, and the land used with it — from attachment and execution up to $125,000 in value, together with its rents, issues, and profits (27 V.S.A. § 101). The exemption is automatic (no filing needed) but applies only to a principal residence, not to investment or vacation property, and it does not defeat a mortgage, tax lien, or certain other secured claims. This protection can benefit the surviving spouse and minor children in an estate. (A 120-hour survivorship requirement applies to the homestead allowance, exempt property, intestate succession, and taking under a will — 14 V.S.A. § 337.)

Why holographic wills are invalid in Vermont — and what to do about it

Vermont does NOT recognize holographic (handwritten, unwitnessed) wills. Under 14 V.S.A. § 5, a valid Vermont will requires that the testator be at least 18, that the will be in writing and signed by the testator, and that at least two witnesses who witness the signing also sign. A will that lacks two witnesses — even if entirely handwritten and clearly expressing the testator's intent — is invalid in Vermont.

This is significantly stricter than most UPC states we cover (Idaho, Montana, Wyoming, North Dakota, South Dakota, and Utah all recognize holographic wills). If a Vermont resident writes a handwritten will without witnesses — a common practice when people think they're "doing something" — the estate is treated as intestate, and the handwritten document cannot be admitted to probate. Vermont does allow a "self-proving" will with a notarized attestation, which speeds probate by letting the court accept the will without contacting the witnesses. All Vermont residents should execute a properly witnessed will with a Vermont estate-planning attorney. Contact the Vermont Bar Association at vtbar.org.