Probate in Vermont: What Your Family Goes Through Without a Will

Most estates in Vermont pass through probate, though a handful of exceptions may apply which can help you avoid the full proceedings. In the case of intestate succession, when a person dies without a will, the state outlines who inherits from an estate. An estate will go through probate in Vermont if there is no will, with a few exceptions.

• Life insurance policies with a beneficiary.  

• Retirement accounts with a designated beneficiary.

• Brokerage and or bank accounts with a payable-on-death or transfer-on-death designation.

• Property owned jointly that has established right of survivorship.  

If none of these apply, an estate without a will does go through probate in Vermont. If the personal property is valued at $45,000 or less and the deceased owned no Vermont real estate other than a timeshare, you can use Vermont's simplified small estate process instead of full probate.

Succession Laws Without a Will in Vermont

Understanding who inherits starts with how Vermont classifies property between spouses. Vermont is a common law property state, not a community property state, meaning ownership is specified with beneficiary designations listed on accounts, deeds, or titles.  

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If none of the exceptions above apply, the estate will go through probate and be distributed according to the following lines of succession.

• If you have no children, or all of your children are from your current marriage, your spouse inherits everything.

• If you have children from another relationship, your spouse inherits 1/2 of your estate. Those children inherit the other 1/2.

• If you have children but no spouse, your children inherit everything, divided equally.

• If you have no spouse and no children, your parents inherit everything.

• If you have no spouse, no children, and no parents, your siblings inherit everything.

Vermont Probate Process

Vermont probate is administered exclusively by the Probate Division of the Superior Court, with one division in each of Vermont's 14 counties. Vermont imposes a state estate tax on estates over $5 million, at a flat 16% rate on the amount above the exemption, one of the higher rates among states with an estate tax. Vermont has no inheritance tax. A surviving spouse can also elect against a will to claim a guaranteed minimum share, even if the will leaves them far less, known as an elective share.

Avoiding Probate in Vermont

Probate has a reputation for being slow and costly, prompting many families to look for ways around it. Here are the main options.

• Put your assets in a revocable living trust to avoid probate and gain more control over who inherits.

• Name beneficiary designations on financial and retirement accounts to guarantee new owners upon death.  

• Establish joint ownership with right of survivorship for automatic transfer of those properties.

Want to learn more about trusts in Vermont? This is what is required for a trust.