Vermont Estate Planning: Free Wills, Trusts & Calculators

Like all states, Vermont recognizes formally executed wills and living trusts as valid estate planning tools. A standard will here requires 214 V.S.A. § 5Verified Jul 15, 2026View source adult witnesses, and adding a notarized self-proving affidavit can streamline the probate process later.

The state adopted the Uniform Power of Attorney Act in 2023, modernizing its rules around financial powers of attorney. Documents created before 2023 may not reflect the current law's protections.

If you die without a will in Vermont, your heirs must survive you by at least 120 hours14 V.S.A. § 311Verified Jul 15, 2026View source to inherit anything. This "survival period" exists to prevent property from passing through multiple estates in quick succession when family members die close together in time, such as in an accident.

Unlike states with formal independent administration statutes (such as California and Texas), Vermont doesn't offer a simplified procedure for executors to petition for reduced court oversight. However, executors typically have statutory authority to manage routine estate matters. For families looking to avoid probate court involvement entirely, a revocable living trust remains the most reliable option.

Vermont imposes its own estate tax on estates exceeding $5,000,00032 V.S.A. § 7442aVerified Jul 13, 2026View source, with a top rate of 16%32 V.S.A. § 7442aVerified Jul 13, 2026View source. This is separate from the federal estate tax and applies at a much lower threshold—the federal exemption is $15,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Jul 13, 2026View source. Families with estates near this threshold often use trusts and lifetime gifting to reduce exposure.

Vermont does not allow transfer-on-death deeds for real estate. Without this option, real property must pass through probate or be held in a trust to avoid court proceedings. Transferring property into a revocable trust does not trigger a property tax reassessment in Vermont, so property taxes remain at their current level.

Vermont provides a statutory homestead exemption protecting up to $125,000 in home equity from creditors. While not as strong as the constitutional protections in states like Texas or Florida, this still provides meaningful protection for the family home. Executors must publish a notice to creditors, who then have 4 months14 V.S.A. § 1203Verified Jul 15, 2026View source to file claims against the estate.

Vermont does not automatically revoke an ex-spouse as beneficiary upon divorce. Without updating beneficiary designations after a divorce, an ex-spouse may still inherit life insurance proceeds and retirement accounts—regardless of what a will says. Vermont does not protect inherited IRAs from creditors. Unlike the owner's own retirement accounts, inherited IRAs in Vermont are vulnerable to creditor claims, which is an important consideration when naming beneficiaries.

Vermont fully authorizes remote online notarization (RON) for estate planning documents, including wills, trusts, healthcare directives, powers of attorney. RON covers the notarization step; whether the whole signing can happen remotely also depends on whether the document's witnesses may attend by video.