Estate planning basics in Vermont

State rules are general information kept current by Legacy Guard, last reviewed October 21, 2026. Your attorney's advice comes first. Figures that are adjusted each year are given for the year stated.

What this means for your plan

• Vermont taxes estates above its own threshold, which is below the federal $15 million exemption. Families near the line often plan for it with gifts, trusts, or titling. Ask your attorney whether your plan accounts for it.
• Vermont does not have a standard transfer on death deed, but it allows a similar deed in limited form. Your attorney can tell you whether it fits your plan.
• Small estate rules only matter if little or nothing goes through probate. A funded trust and up to date beneficiary designations are what keep an estate small in the first place, and that is exactly what the Legacy Guard annual review checks each year.

Questions about Vermont

Does Vermont have an estate tax?

Yes. Estates over $5 million pay a flat 16 percent on the amount above $5 million.

Does Vermont have an inheritance tax?

No. Vermont does not tax what an heir receives.

Is Vermont a community property state?

No. Vermont is a common law property state. Vermont probate runs through the probate division of the superior court and stays open at least four months for creditor claims, usually with an attorney. A living trust is commonly used to avoid it.

Does Vermont allow a transfer on death deed for real estate?

Limited. Vermont has no statutory transfer on death deed, but an enhanced life estate deed (a Lady Bird deed) is recognized and used to pass a home outside probate.

What is the small estate limit in Vermont?

Small estate procedure through the probate court for personal property up to $45,000 and no real estate.