Does Vermont Allow Transfer on Death Deeds?

Why TOD deeds aren't available in Vermont

Vermont has not adopted the Uniform Real Property Transfer on Death Act or any TOD deed statute.

Vermont enacted the Enhanced Life Estate Deed Act (ELED Act) at 27 V.S.A. 651-660 effective Jul 13, 2020, which provides a nonprobate transfer mechanism for real property distinct from TOD deeds. Optional statutory form at 27 V.S.A. 660. Under 27 V.S.A. 654(c), if the property was not conveyed during the grantor’s lifetime, the interest stated in the ELE deed vests in the grantee at the grantor’s death, subject to encumbrances of record. Unlike a TOD deed in most states, a recorded ELE deed is subject to the Vermont property transfer tax under 32 V.S.A. chapter 231 (27 V.S.A. 654(d)). 14 V.S.A. 4031(a)(12) (Vermont Uniform Power of Attorney Act, added 2023 Act No. 60, eff. Jul 1, 2023) requires an express grant of authority in a power of attorney before an agent may convey, or revoke or revise a grantee designation, by enhanced life estate deed under 27 V.S.A. ch. 6 or common law. Vermont has no county recording: every deed, including an enhanced life estate deed, records with the clerk of the TOWN in which the land lies (27 V.S.A. 341(a)), and an unacknowledged, unrecorded conveyance is not effectual against anyone but the grantor and the grantor’s heirs (27 V.S.A. 342). Joint tenancy is not Vermont’s default form of co-ownership: a conveyance to two or more persons creates an estate in common unless survivorship is expressed, and since 2026 Act No. 165 it must be expressed in either the grant clause or the habendum clause of the instrument (27 V.S.A. 2(a)); conveyances in trust, conveyances to spouses, and instruments whose tenor manifestly shows joint-tenancy intent are excepted. Vermont’s "transfer on death" statute, 9 V.S.A. ch. 134, governs registration of securities in beneficiary form, not real property (9 V.S.A. 4352).

Alternatives for Vermont

These mechanisms transfer real property at death without probate in Vermont:

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  Enhanced life estate deed (27 V.S.A. ch. 6, sections 651-660, enacted 2019 Act No. 145 (Adj. Sess.) / H.837, eff. Jul 13, 2020)
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  Revocable living trust
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  Joint tenancy with right of survivorship (must be expressed in the grant or habendum clause — 27 V.S.A. 2(a) as amended by 2026 Act No. 165, Sec. 26)
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  Life estate deed

Consult a licensed attorney for help choosing the right mechanism for your situation.