Vermont repealed its state estate tax effective January 1, 2016. For any death on or after January 1, 2016, no Vermont estate tax return is required and no Vermont estate tax is owed — regardless of the size of the estate. This makes Vermont one of the most estate-tax-friendly states in New England. Connecticut repealed its estate tax for deaths on or after January 1, 2023; New Jersey repealed in 2018. Vermont's repeal was earlier — 2016.
Vermont has no inheritance tax. Beneficiaries — spouses, children, siblings, friends, charities — pay no Vermont tax on distributions, regardless of their relationship to the deceased. Combined with the estate tax repeal, Vermont imposes no state-level estate or inheritance taxes on any estate.
Vermont restructured its court system in 2011. The former Probate Court (an independent district court) was merged into the Vermont Superior Court as the "Probate Division." There are 14 Probate Division units — one per county. When contacting the court, ask for the "Probate Division" of the Vermont Superior Court in the relevant county. The judge hearing probate matters is a Superior Court judge with probate jurisdiction, not a separate "Probate Judge."
Vermont's creditor period runs 6 months from the date of first publication of Notice to Creditors — not from the date of appointment. Publish Notice to Creditors promptly after receiving Letters to start the clock. No final distributions until 6 months from the first publication date. Note the difference from Rhode Island (which measures from appointment) and Massachusetts (which measures from death).
Small Estate vs. Full Probate in Vermont
| Feature | Small Estate (§ 1902) | Full Probate |
|---|---|---|
| Gross probate estate | ≤ $45,000 | Any amount |
| Real estate | Generally excluded | Included |
| Waiting period | None | None |
| Court involvement | Simplified — Probate Division petition | Full administration |
| Vermont estate tax | None (repealed 2016) | None (repealed 2016) |
| Vermont inheritance tax | None | None |
Vermont Intestate Succession
If the deceased died without a will, Vermont's intestacy statute (V.S.A. Title 14 § 551 et seq.) governs distribution:
| Surviving Heirs | Distribution |
|---|---|
| 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 (no spouse) | Descendants share equally (per stirpes) |
| Parents only | Parents share equally |
| Siblings only | Siblings share equally |
| No heirs | Estate escheats to Vermont |
Vermont Will Requirements
- Testator must be at least 18 years old and of sound mind
- Will must be in writing and signed by the testator
- Signature must be made or acknowledged in the presence of two competent witnesses who each sign the will
- Notarized self-proving affidavit is not required but simplifies probate
- Holographic wills (handwritten, no witnesses) are NOT valid in Vermont
Unlike most states where real estate records are kept at the county level, Vermont keeps land records at the town or city level — there are 246 Vermont municipalities. When transferring real estate through a Vermont estate, the deed must be recorded with the town or city clerk in the municipality where the property is located — not the county courthouse. This is a Vermont peculiarity that surprises executors from other states.
Vermont Probate — Step by Step
Determine if Probate Is Required
Classify all assets. Non-probate assets (joint tenancy, POD/TOD accounts, named beneficiaries, living trusts) pass outside probate. If gross probate estate ≤ $45,000 and no real estate, the simplified small estate procedure may apply. No Vermont estate tax for deaths on or after January 1, 2016 — no state estate tax planning required.
Gather Essential Documents
Order 6–8 certified death certificates from Vermont Vital Records (healthvermont.gov). Locate the original will. Identify all heirs and beneficiaries with addresses. Gather financial account statements, titles, and deeds. Confirm the correct county Probate Division of the Vermont Superior Court (county of domicile at death). Vermont has 14 counties: Addison, Bennington, Caledonia, Chittenden, Essex, Franklin, Grand Isle, Lamoille, Orange, Orleans, Rutland, Washington, Windham, and Windsor.
Handle Immediate Obligations
Maintain insurance on real estate and vehicles. Pay mortgage or rent. Cancel recurring subscriptions. Notify SSA. Redirect mail. Contact employer about final paycheck and pension. Secure all estate assets immediately.
File Petition with the Probate Division
File the Petition for Probate of Will (testate) or Petition for Administration (intestate) with the Probate Division of the Vermont Superior Court in the county of domicile. 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. Then immediately publish Notice to Creditors — the 6-month creditor clock starts from first publication date.
Apply for Estate EIN and Open Estate Account
Apply for a federal EIN at irs.gov (select "Estate" entity type). Open a dedicated estate checking account using the Letters, EIN, and death certificate. Keep meticulous records of all deposits and disbursements. Never mix personal and estate funds.
Publish Notice to Creditors — 6 Months from First Publication
Publish Notice to Creditors in a Vermont newspaper of general circulation in the county. Mail written notice to all known creditors. Vermont's creditor period is 6 months from the date of first publication — not from appointment. Record the publication date carefully. No final distributions before 6 months from first publication.
File Income Taxes (No Vermont Estate Tax)
No Vermont estate tax for deaths on or after January 1, 2016. No Form required. File deceased's final Vermont Form IN-111 (income tax, April 15). File Vermont Form FI-161 (Fiduciary Income Tax Return, April 15) if the estate earns income. File federal Form 1040 (final) and federal Form 1041 if the estate earns income over $600. Search Vermont unclaimed property at vermonttreasurer.gov/unclaimedproperty.
Distribute Assets, File Account, and Close
After 6 months from first publication and all creditor claims are resolved, distribute assets per the will or Vermont intestacy. File a Final Account with the Probate Division showing all receipts, disbursements, and distributions. Receive a Decree approving the Account and discharging the Executor. Transfer real estate: prepare a deed and record it with the town or city clerk (municipal land records, not county). Transfer vehicle titles at Vermont DMV. Close the estate bank account after final distribution.
New England Probate Comparison
| Feature | Vermont | Massachusetts | Rhode Island | Connecticut | New Hampshire |
|---|---|---|---|---|---|
| Small estate limit | $45,000 | $25,000 | $15,000 | $40,000 | $10,000 |
| Creditor period | 6 mo. from publication | 1 year from death | 6 mo. from appt. | 150 days from pub. | 6 mo. from pub. |
| Estate tax | None (2016+) | $2M exemption | $1.77M exemption | None (2023+) | None |
| Inheritance tax | None | None | None | None | None |
| Court type | Superior Court — Probate Division | Probate & Family Court | 39 municipal courts | Probate Court (54 districts) | Circuit Court — Probate Division |
Frequently Asked Questions
Does Vermont's estate tax repeal apply to all deaths?
Vermont's estate tax repeal applies to deaths on or after January 1, 2016. For deaths before January 1, 2016, the old Vermont estate tax applied. If you are administering an estate from before 2016, you may still need to research the old Vermont estate tax rules. For all deaths in 2016 or later, no Vermont estate tax return is required.
Do I need to record real estate in Vermont at the county or town level?
Town (municipal) level. Vermont land records are kept by individual towns and cities — not the county. When you need to record a deed transferring real estate from an estate, you record it with the town or city clerk in the municipality where the property is located. Vermont has 246 municipalities. Contact the correct town or city clerk's office.
How does Vermont's court restructuring affect probate?
The 2011 restructuring merged the old Probate Court into the Vermont Superior Court as the "Probate Division." Functionally, probate in Vermont works the same as before — there are still 14 county units, and you file in the county of the deceased's domicile. The difference is structural: the judge presiding over your probate case is a Vermont Superior Court judge, not a separate "Probate Judge." Old guides may refer to the "Probate Court" — that name is no longer correct, but the procedures under V.S.A. Title 14 still apply.
How long does Vermont probate take?
Typical Vermont probate takes 9–15 months. The 6-month creditor period from first publication is the binding constraint. Publishing notice immediately after receiving Letters minimizes this delay. Simple intestate estates with cooperative heirs can close in 9–10 months. Estates with real estate transfers, income tax filings, or disputes may take longer.
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