What Is Probate and How Does It Work in Vermont?

Vermont Probate — At a Glance

✦     Governing Statute — Title 14 V.S.A. — Decedents' Estates and Fiduciary Relations

✦     Court — Vermont Probate Division of the Superior Court — one in each of Vermont's 14 counties

✦     Four Types of Vermont Probate Estates — Testate (with will, 14 V.S.A. Ch. 3); Intestate (no will, 14 V.S.A. §§ 301 et seq.); Small Estate (personal property ≤$45,000, 14 V.S.A. § 1901); Ancillary (out-of-state decedent with Vermont property, 14 V.S.A. § 114)

✦     Creditor Claim Deadline — 4 months from first publication of notice — a hard deadline after which claims are permanently barred (14 V.S.A. § 1203)

✦     Small Estate Threshold — $45,000 in personal property only — no Vermont real estate (14 V.S.A. § 1901)

✦     Typical Duration — 6–18 months minimum for uncomplicated estates; 1–3 years or longer for complex or disputed estates

✦     Probate Is Public Record — Vermont probate proceedings — including the will, inventory, and distribution — are matters of public record open to inspection

✦     Will Filing Requirement — Any person with custody of a will must deliver it to the Probate Division within 30 days of learning of the testator's death — even if no assets pass through probate (14 V.S.A. § 103)

Vermont Probate: Which Assets Are Subject — and Which Are Not

Subject to Vermont Probate:

•       Real estate titled solely in the decedent's name

•       Bank or investment accounts with no joint owner, no POD designation, and not held in trust

•       Personal property — vehicles, household contents, and jewelry in the decedent's name alone

•       Business interests held in the decedent's name without a buy-sell agreement, survivorship arrangement, or trust

NOT Subject to Vermont Probate:

✦     Property held in joint tenancy with right of survivorship — passes to the surviving owner automatically by operation of law

✦     Life insurance with a named beneficiary other than the estate

✦     IRAs, 401(k)s, and retirement accounts with named beneficiary designations other than the estate

✦     Bank and investment accounts with a payable-on-death (POD) or transfer-on-death (TOD) designation

✦     Property held in a funded living trust

✦     Certain survivor benefits and annuities with beneficiary designations

Vermont Will Requirements (14 V.S.A. §§ 1 and 5)

✦     Age and Capacity — The testator must be at least 18 years old (or emancipated by court order) and of sound mind — meaning they understand the nature of making a will, the extent of their property, and who their natural heirs are

✦     In Writing — The will must be in writing. Audio recordings, video files, and digital documents are not valid wills in Vermont.

✦     Signed by the Testator — The will must be signed by the testator, or in the testator's name by another person in the testator's presence and at the testator's express direction

✦     Two Credible Witnesses — The will must be attested and subscribed by two or more credible witnesses, in the presence of the testator and of each other

✦     Witness/Beneficiary Rule — If a witness is also a beneficiary under the will, that bequest to the witness is void unless two additional disinterested witnesses also signed

Critical Vermont-Specific Rule:

Vermont does NOT recognize holographic wills — handwritten, unwitnessed wills — unless the will was executed in another jurisdiction that recognizes them and was valid under that state's law (14 V.S.A. § 112). No matter how clearly a handwritten note expresses a person's wishes, it is not a valid Vermont will without two witnesses.

Vermont Intestate Succession Rules (14 V.S.A. §§ 311–314)

•       Spouse only, no children — Spouse inherits the entire intestate estate

•       Spouse and children from that marriage — Spouse inherits the entire intestate estate

•       Spouse and children from another relationship — Spouse inherits one-half; children from the other relationship inherit one-half

•       Children only, no spouse — Children inherit everything in equal shares

•       No spouse or children — Parents inherit everything

•       No spouse, children, or parents — Siblings inherit everything; if siblings have predeceased, their children inherit by right of representation

Additional Vermont Intestacy Rules:

✦     A person must survive the decedent by at least 120 hours to inherit (14 V.S.A. § 337)

✦     Adopted children have the same inheritance rights as biological children

✦     Half-blood relatives inherit equally with whole-blood relatives of the same degree (14 V.S.A. § 331)

✦     A person criminally responsible for the decedent's death cannot inherit (14 V.S.A. § 322)

Critical Warning for Vermont Residents:

Intestate succession does not account for actual relationships — only legal ones. A lifelong domestic partner who was never married to the decedent, a stepchild who was never formally adopted, or a close friend receives absolutely nothing under Vermont intestacy law, no matter how close or longstanding the relationship. Only a valid will or trust can protect these individuals.

Vermont Administrator Priority Order — When There Is No Will (14 V.S.A. § 903)

✦     First — Surviving spouse

✦     Second — Next of kin

✦     Third — Creditors

✦     Fourth — Any other person the court appoints in its discretion

Persons Disqualified From Serving as Vermont Executor

•       Minors under the age of 18

•       Persons adjudged incapacitated by a court

•       Persons with felony convictions may face Probate Division scrutiny

•       Non-resident executors may be required to appoint a Vermont resident agent for service of process

No one can be forced to serve as executor. If you are named in a will, you have the right to decline the appointment. The court may require a bond under 14 V.S.A. § 906 to protect the estate — a will can waive this requirement, and the court has discretion over necessity and amount.

Core Vermont Executor Duties (14 V.S.A. §§ 901–1070)

✦     Petition to open the estate in the Probate Division of the Superior Court in the county where the decedent lived at death

✦     File an inventory of all estate assets within 30 days of appointment, listing each asset at fair market value as of the date of death

✦     Publish notice to creditors and individually notify known creditors

✦     Collect and protect all estate assets during administration

✦     Respond to creditor claims — allow or disallow each within 60 days of receipt

✦     Pay valid debts and expenses in the statutory priority order (14 V.S.A. § 1205)

✦     File required federal and Vermont tax returns if applicable

✦     File annual accounting reports with the Probate Division until the estate closes

✦     Distribute remaining assets to beneficiaries only after court approval

✦     File a Summary of Account and Petition to Close with the court

Deliver will to Probate Division

Within 30 days of learning of death

14 V.S.A. § 103

File estate inventory

Within 30 days of appointment

14 V.S.A. § 1051

Publish notice to creditors

As soon as practicable after appointment

14 V.S.A. § 1201

Creditor claim deadline

4 months from first publication of notice

14 V.S.A. § 1203

Allow or disallow creditor claim

Within 60 days of receiving the claim

14 V.S.A. § 1206

Annual accounting to court

Annually until estate is closed

14 V.S.A. § 1055

Critical Warning:

If you pay a creditor claim that was not properly filed, or pay debts in the wrong priority order, you as executor may be personally liable to reimburse the estate. Consult an attorney before making distributions or paying any significant creditor claim.

Vermont Creditor Claim Rules (14 V.S.A. § 1203)

•       Standard Deadline — 4 months after the date of first publication of notice to creditors — for creditors who received proper statutory notice

•       Maximum Outside Deadline — 1 year after the decedent's death — if notice to creditors was never published or otherwise given

•       How a Creditor Files — The creditor delivers a written statement of the claim to the executor, specifying the basis, amount, and claimant's name and address, and files a copy with the Probate Division

•       Executor's Response — The executor has 60 days to either allow or disallow the claim

•       If Disallowed — The creditor must file a petition with the court or commence a proceeding within 60 days of receiving the notice of disallowance

The four-month creditor claim period is a hard deadline. Once it passes, claims that were not timely filed are permanently barred — even if the creditor later discovers the estate. Publishing notice promptly and documenting the publication date is essential executor practice.

1st

Expenses of Administration

Court costs, attorney fees, executor compensation — paid first, before any other claim

2nd

Funeral, Burial & Headstone

Up to $3,800 — Vermont sets a statutory cap on funeral expense priority

3rd

Wages Owed by Decedent

Past due wages owed to employees, up to $300 per claimant

4th

All Other Claims

General unsecured creditors — paid last from remaining estate assets

Vermont Surviving Spouse Rights (14 V.S.A. § 319)

✦     Elective Share Amount — One-half of the balance of the probate estate, after payment of allowances, claims, and expenses

✦     Notice Requirement — The court must provide the surviving spouse with written notice of these rights within 30 days of the filing of the initial estate inventory (§ 319(e)(1))

✦     Election Deadline — The spouse has four months from service of that notice to decide whether to elect against the will

✦     Household Goods — The surviving spouse may petition for ownership of household goods and furnishings from the estate

✦     Support Allowance — The surviving spouse and minor children are entitled to a reasonable allowance for support during the period of estate administration

✦     Homestead Rights — Vermont homestead rights under 27 V.S.A. § 141 provide further protections for the family home

Caveat: A surviving spouse who signed a valid prenuptial or postnuptial agreement waiving the elective share under 14 V.S.A. § 323 may be bound by that agreement. Consult an attorney before assuming the elective share right is available.

Vermont Small Estate Procedure (14 V.S.A. § 1901)

To qualify, all three conditions must be met:

✦     The estate's fair market value must not exceed $45,000

✦     The estate must consist entirely of personal property — no Vermont real estate (time-shares as defined by 32 V.S.A. § 3619(a) are an exception)

✦     The petitioner must file a petition, death certificate, will if any, list of heirs, affidavit of funeral expenses and known debts, and a bond without surety

Benefits of the Small Estate Procedure:

•       No requirement to publish a formal notice to creditors — the creditor notification period is effectively waived

•       Significantly faster and less expensive than full probate

•       Once debts are paid, assets may be distributed and the estate closed with a Report of Fiduciary for Small Estate

Note: Any interested party who has not consented in writing must receive notice and has 14 days to file objections under 14 V.S.A. § 1901(b).

Vermont Probate Timeline and Cost — What to Expect

•       Minimum Timeline — Uncomplicated Estate — 6–18 months. This floor is driven by the 4-month creditor claim window — no estate can be fully closed until that period expires and all timely claims are addressed.

•       Typical Timeline — Moderate Complexity — 1–2 years for estates with real estate, multiple beneficiaries, business interests, or required estate tax returns.

•       Complex or Contested Estates — 2–3 years or longer for estates involving family disputes, will contests, out-of-state assets, or significant creditor claims.

•       Cost — Modest Estate — Attorney fees, court costs, and executor compensation can total $3,000–$8,000 or more even for a modest Vermont estate.

•       Cost — Complex Estate — For larger or more complex Vermont estates, total probate costs can reach $20,000 or more — paid from estate assets before distributions to beneficiaries.

Proactive estate planning — particularly the use of funded living trusts and updated beneficiary designations — can substantially reduce or eliminate these costs for future Vermont estates.

Vermont Probate Avoidance Tools

✦     Revocable Living Trust — The most comprehensive Vermont probate avoidance tool. Assets transferred into a properly funded living trust pass directly to beneficiaries at death according to the trust's terms — without any court process, without public disclosure, and with no delay. The critical requirement: the trust must be funded — assets actually transferred into the trust's name during lifetime. An unfunded trust provides no probate avoidance benefit. Vermont trusts are governed by 14A V.S.A. §§ 101–1204.

✦     Joint Tenancy With Right of Survivorship — A surviving joint owner inherits automatically by operation of law, without probate. Commonly used by Vermont spouses who jointly own real estate.

✦     Beneficiary Designations (POD/TOD) — IRAs, 401(k)s, life insurance policies, and accounts with payable-on-death or transfer-on-death designations pass directly to named beneficiaries outside of probate. These designations should be reviewed and updated after every major life event. Naming a minor child as a direct beneficiary creates complications — a trust is often the more appropriate vehicle.

✦     Vermont Enhanced Life Estate Deed (Ladybird Deed) — A powerful and underutilized Vermont-specific tool that allows a property owner to transfer real estate to named beneficiaries at death automatically — without probate — while retaining full control during their lifetime, including the right to sell, mortgage, or change beneficiaries.

One important rule applies even when probate is avoided entirely: Vermont still requires the custodian of a will to file it with the Probate Division within 30 days of learning of the testator's death (14 V.S.A. § 103) — even if no assets will pass through probate.