Estate Planning in Vermont

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 Sep 16, 2026View source adult witnesses, and adding a notarized self-proving affidavit can streamline the probate process later.

A Vermont healthcare power of attorney is signed before 218 V.S.A. § 9719Verified Jul 15, 2026View source witnesses; notarization is not required18 V.S.A. § 9719Verified Jul 15, 2026View source. Witnesses must be at least 18 years18 V.S.A. § 9719Verified Jul 15, 2026View source old and cannot be the named agent or blood relatives. The agent must be at least 18 years18 V.S.A. § 9719Verified Jul 15, 2026View source old, and Vermont bars the principal’s healthcare providers and employees of the treating facility from serving, subject to the statute’s exceptions.

A Vermont financial power of attorney requires neither witnesses nor notarization to be valid14 V.S.A. §§ 4004, 4005, 4006, 4007, 4009, 4013, 4019, 4020, 4031, 4047, 4051, 4052Verified Sep 20, 2026View source. A notarized signature carries a statutory presumption that it is genuine14 V.S.A. §§ 4004, 4005, 4006, 4007, 4009, 4013, 4019, 4020, 4031, 4047, 4051, 4052Verified Sep 20, 2026View source. The document is durable by default14 V.S.A. §§ 4004, 4005, 4006, 4007, 4009, 4013, 4019, 4020, 4031, 4047, 4051, 4052Verified Sep 20, 2026View source: it stays in effect if the principal becomes incapacitated. A springing power of attorney, one that takes effect only when the principal becomes incapacitated, is permitted14 V.S.A. §§ 4004, 4005, 4006, 4007, 4009, 4013, 4019, 4020, 4031, 4047, 4051, 4052Verified Sep 20, 2026View source. 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.

Vermont imposes its own estate tax on estates exceeding $5,000,00032 V.S.A. § 7442aVerified Sep 15, 2026View source, with a top rate of 16%32 V.S.A. § 7442aVerified Sep 15, 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 Sep 15, 2026View source. Families with estates near this threshold often use trusts and lifetime gifting to reduce exposure.

Vermont does not require a revocable living trust to be notarized14A V.S.A. § 101 et seq.Verified Jul 15, 2026View source. 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 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 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.