Estate Planning Guide
Estate Planning in Vermont: A Complete Guide
Here's what surprises most Vermont residents when they first sit down with an estate attorney — the rules here aren't what most people expect. Vermont imposes a state estate tax with an exemption of $5 million — lower than the federal threshold. Vermont's appreciation in both agricultural land and vacation property has pushed more families into estate planning territory.
Vermont Probate
Vermont probate follows the Uniform Probate Code and is handled in Probate Court (one for each county). The process typically takes 6-12 months. Vermont's relatively rural and small population means probate is often handled more informally than in larger states.
Vermont Estate Tax
Vermont imposes a state estate tax with a $5 million per-person exemption (2024) at a flat 16% rate above the exemption. Vermont's farm and vacation property values mean some rural families now have taxable estates despite relatively modest income.
Key facts for Vermont residents
These are the things that genuinely matter when you're building an estate plan in Vermont — the details that affect your family directly.
- 1
Vermont state estate tax applies to estates over $5 million (2024)
- 2
Vermont estate tax rates range from 16% (flat rate above exemption)
- 3
Uniform Probate Code — more streamlined than many states
- 4
Small estate affidavit available for estates under $45,000
- 5
Vermont Civil Union and same-sex marriage fully recognized for all estate purposes
What makes Vermont different
Every state has quirks that can trip you up. These are the considerations that are specific to Vermont— and the ones most people don't find out about until it's too late.
Vermont farm succession planning — agricultural land values have increased significantly
Ski resort and vacation property in Stowe, Killington area can be significant estate assets
Vermont Act 250 (land use control) affects development and value of rural parcels
Vermont Medicaid (Green Mountain Care) estate recovery on real property
Vermont allows civil unions with full property rights equivalent to marriage
Documents most used in Vermont
These are the documents Vermont families rely on most. Having them in place gives your family clarity and protects your wishes.
Last Will and Testament
Revocable Living Trust
Advance Directive
Durable Power of Attorney
Credit Shelter Trust (for estates over $5M)
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Frequently asked questions about estate planning in Vermont
Does Vermont have a state estate tax?
No — Vermont does not have a state estate tax. The federal estate tax applies only to estates exceeding $13.61 million (2024). Vermont also has no state inheritance tax.
How does Vermont probate work?
Vermont probate is handled through Probate Division of the Vermont Superior Court. Vermont has a relatively uncomplicated probate process. Small estates (personal property under $10,000) can use a simplified affidavit. Standard probate typically takes 6–12 months.
What are the unique estate planning considerations for Vermont farmland?
Vermont's Act 68 Current Use Program allows qualifying farm and forest land to be assessed at its current use value rather than market value, significantly reducing property taxes. Estate plans should address whether heirs intend to continue qualifying use — a change in use triggers back taxes.
Are there Vermont-specific tools for avoiding probate?
Vermont allows joint tenancy with right of survivorship, payable-on-death designations, and beneficiary designations on retirement accounts to transfer assets without probate. Vermont does not have a statutory transfer-on-death deed for real property, making living trusts the primary tool for real estate.
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Important disclaimer
This content is for general informational purposes only and does not constitute legal, tax, or financial advice. It was created with the assistance of AI and may contain inaccuracies. State laws change frequently — always consult a qualified attorney or financial advisor in Vermont before making estate planning decisions.