What Are My Duties as Trustee in Vermont?
Step-by-step guide for administering a trust after the grantor passes away. Answer a few questions to get a personalized checklist for your situation.
Frequently Asked Questions
A successor trustee in Vermont has a fiduciary duty to manage trust assets prudently, notify beneficiaries, pay debts and taxes, and distribute assets according to the trust terms.14A V.S.A. § 101 et seq.Verified Jun 11, 2026 Unlike probate, trust administration is private and does not require court involvement.
Vermont requires the successor trustee to notify qualified beneficiaries of the trust's existence and the trustee's contact information within 60 days of the grantor's death.14A V.S.A. § 101 et seq.Verified Jun 11, 2026 The notice typically includes the trustee's name and address, and the beneficiary's right to request trust information.
When the grantor dies, the revocable trust becomes irrevocable and requires its own EIN (Employer Identification Number) from the IRS. The trustee must file Form 1041 (U.S. Income Tax Return for Estates and Trusts) for any income earned by trust assets after the date of death. The trust may also need to file a Vermont state income tax return.
Vermont requires trustees to maintain detailed records of all trust transactions, including income, expenses, distributions, and investment decisions.14A V.S.A. § 101 et seq.Verified Jun 11, 2026 Beneficiaries have the right to request accountings. Proper documentation protects the trustee from liability claims and provides transparency for beneficiaries.
Trustee compensation in Vermont is based on reasonable compensation for the services performed. Professional trustees typically charge 0.5-1.5% of trust assets annually. Individual (non-professional) trustees often reference executor fee guidelines (2-4% of estate value) as a benchmark. See the Vermont trustee compensation guide for details.
Trust administration in Vermont typically takes 6-12 months, compared to 9-15 months for average probate cases.14 V.S.A. § 1901 (small estate), § 1201 (notice to creditors), §§ 1202-1203 (limitations/creditor claims), § 1065 (fees), § 906 (bond), §§ 2101-2110 (probate bonds, Ch. 101), §§ 1851-1854 (waiver of administration, Ch. 80); 32 V.S.A. § 1434(a)(1)-(8) (formal estate filing fees) and § 1434(a)(30) (small estate $50 fee); V.R.P.P. 80.3 (small estate procedure); re-verified 2026-06-11 against legislature.vermont.gov and vermontjudiciary.orgVerified Jun 11, 2026 Trust creditors have 4 months to file claims, compared to 4 months for probate creditor claims. Trust administration avoids court involvement, public filings, and many of the procedural delays associated with probate. See the Vermont estate settlement guide for a complete overview.
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Vermont Estate Planning Resources
In-depth guides covering Vermont probate laws, trust requirements, and estate planning strategies.
