Vermont Probate Process

V.S.A. Title 14 · Probate Division of Vermont Superior Court · 6-Month Creditor Period from Publication · No Vermont Estate Tax (2016+)

Vermont's Unique Court Structure

In 2011, Vermont restructured its court system. The former Probate Court (an independent court) was merged into the Vermont Superior Court as the "Probate Division." Each of Vermont's 14 counties has one Probate Division unit. The judge handling probate matters is a Superior Court judge — not a separate "Probate Judge."

File in the Probate Division in the county where the deceased was domiciled at death. Vermont's 14 counties: Addison, Bennington, Caledonia, Chittenden, Essex, Franklin, Grand Isle, Lamoille, Orange, Orleans, Rutland, Washington, Windham, and Windsor.

Phase 1 — Determine If Probate Is Required

Not all assets require probate. Classify every asset:

Non-Probate Assets

• Joint tenancy with right of survivorship — passes automatically
• POD bank accounts — transferred to named beneficiary directly
• TOD investment accounts — same as POD
• IRAs, 401(k)s, life insurance with named beneficiaries
• Assets in a revocable living trust

Probate Assets

• Bank accounts solely in the deceased's name with no POD
• Real estate titled solely in the deceased's name
• Vehicles solely in the deceased's name
• Investment accounts without TOD
• Personal property, business interests, receivables

If gross probate estate ≤ $45,000 and no real estate: simplified small estate process (§ 1902). Otherwise, full probate is required.

Phase 2 — Gather Essential Documents

• Original will (Probate Division requires the original)
• Certified death certificates — order 6–8 from Vermont Vital Records (healthvermont.gov)
• Asset inventory with date-of-death values
• Heir and beneficiary information (full names and addresses)
• Known creditor information
• Real estate documentation — deed, tax records

Phase 3 — Handle Immediate Obligations

• Maintain insurance on real estate and vehicles
• Pay mortgage or rent; cancel recurring charges
• Redirect mail; notify SSA; contact employer about final paycheck
• Secure all estate assets immediately

Phase 4 — File Petition with the Probate Division

File the Petition for Probate of Will (testate) or Petition for Administration (intestate) with the county Probate Division of the Vermont Superior Court. Submit original will and certified death certificate. Pay filing fee (~$90–$250). Receive Letters Testamentary or Letters of Administration. Request 6–8 certified copies. Post bond if required (will may waive).

Publish Notice to Creditors immediately upon receiving Letters — Vermont's creditor period runs from first publication date. Every day of delay postpones the 6-month clock.

Phase 5 — Obtain EIN and Open Estate Account

Apply for estate EIN at irs.gov. Open dedicated estate checking account with Letters, EIN, and death certificate. Keep records of every transaction.

Phase 6 — Publish Notice to Creditors and Prepare Inventory

Publish Notice to Creditors in a Vermont newspaper in the county. Mail notice to all known creditors. Vermont's creditor period is 6 months from first publication date — record this date carefully.

Prepare an inventory of all probate assets with date-of-death values. File inventory with the Probate Division. File promptly — the Probate Division may have a deadline for inventory filing after Letters are issued.

Phase 7 — File Income Taxes (No Vermont Estate Tax)

Vermont income taxes to file:

• Final Form IN-111 (Vermont Individual Income Tax): Due April 15 for residents. Vermont progressive rates: 3.35% to 8.75%.
• Form FI-161 (Vermont Fiduciary Income Tax): Due April 15 (or 3.5 months after fiscal year end) if estate earns income.
• Federal Form 1040 (final) and federal Form 1041 if estate earns income over $600.
• Search Vermont unclaimed property at vermonttreasurer.gov/unclaimedproperty.

Phase 8 — Pay Creditor Claims

After the 6-month creditor period from publication expires:

Priority of Claims in Vermont

1. Administration expenses and Executor compensation
2. Funeral and burial expenses (reasonable)
3. Debts with preference under federal law
4. Reasonable and necessary medical expenses of the last illness
5. Vermont state taxes (income tax)
6. All other debts

Phase 9 — Distribute Assets, File Account, and Close

After all debts are resolved and the creditor period has expired:

• Distribute assets per will or Vermont intestacy (V.S.A. Title 14 § 551 et seq.)
• File Final Account with Probate Division (all receipts, disbursements, distributions)
• Receive Decree approving Account and discharging Executor
• Real estate: Prepare deed and record with the town or city clerk in the municipality where the property is located (Vermont uses municipal, not county, land records)
• Transfer vehicle titles at Vermont DMV
• Close estate bank account after final distribution
• Retain estate records for at least 3 years

Vermont Intestacy

Surviving Heirs	Distribution (V.S.A. Title 14 § 551)
Spouse only (no descendants)	Spouse inherits entire estate
Spouse + descendants all also spouse's	Spouse inherits entire estate
Spouse + descendants (one or more NOT spouse's)	Spouse: ½ of estate; descendants share ½
Descendants only	Descendants share equally per stirpes
Parents only	Parents share equally
No heirs	Estate escheats to Vermont

Common Mistakes in Vermont Probate

Mistake	Consequence	How to Avoid
Delaying publication of Notice to Creditors	Pushes 6-month creditor period into the future; delays closing	Publish immediately after receiving Letters
Recording real estate deed at county level	Deed is recorded in wrong office; title defect	Record with the town or city clerk in the municipality
Thinking pre-2016 estate tax rules still apply	Unnecessary preparation of a nonexistent filing	Vermont estate tax repealed 2016 — no filing for deaths 2016+
Distributing before 6 months from publication	Personal liability to unpaid creditors	Mark publication date; wait full 6 months
Not searching unclaimed property	Estate assets left uncollected	Search vermonttreasurer.gov before closing