VT state guide
Vermont estate risk overview
This guide explains how estate outcomes work in Vermontwhen there is no plan. We cover intestacy rules, probate flow, guardianship defaults, and tax exposure in clear, educational language.
Snapshot
Key default outcomes
- Intestacy laws determine who receives assets.
- Probate court oversees the estate and public filings.
- Guardianship for minors is court-appointed if needed.
- State and federal tax rules may apply to larger estates.
What happens without a will
Vermont intestacy gives the surviving spouse the entire estate in some cases, or one-half when the decedent leaves descendants not shared with the spouse, with the remainder passing to descendants or other heirs by representation.
- If there are no descendants or all descendants are also the spouse's, the spouse inherits the entire intestate estate.
- If the decedent leaves descendants not of the spouse, the spouse receives one-half of the intestate estate.
- The balance passes to descendants by right of representation; if none, to parents, then siblings, then grandparents, then next of kin.
- When heirs take by right of representation, the estate is divided into equal shares at the nearest generation with surviving heirs.
Probate process
Vermont allows a small-estate probate process for personal-property estates under a statutory cap.
- The estate must consist entirely of personal property with a fair market value of $45,000 or less.
- A small estate is opened by filing a petition, list of interested persons, inventory, death certificate, and required affidavits.
- Small estate filings require a petition with inventory and a list of interested persons.
Estate and inheritance tax exposure
Vermont imposes an estate tax on Vermont taxable estates above $5,000,000, at a rate of 16% on the excess.
- No Vermont estate tax applies to Vermont taxable estates under $5,000,000.
- The Vermont estate tax rate is 16% on the amount over $5,000,000.
- State estate tax thresholds are separate from the federal exemption and can be lower; confirm current exclusion and filing requirements.
Guardianship for minors
Vermont allows parents or interested persons to petition for guardianship, and parents may appoint guardians by will, with the court retaining oversight.
- A parent or interested person may petition the Probate Division for appointment of a guardian for a minor.
- Either parent may be granted custody if found competent and suitable by the court.
- Either parent may appoint a guardian by will, subject to probate court oversight.
- Parents can nominate a guardian by will or written instrument, subject to court approval.
Risk areas
Explore estate risk dimensions in Vermont
Intestacy risk
How assets are distributed when there is no will and state default rules control the outcome.
Probate risk
Court-supervised estate process, timing, cost exposure, and public record requirements.
Tax exposure
State estate or inheritance tax rules and how they interact with federal thresholds.
Guardianship risk
How courts appoint guardians for minors when no plan is in place.
Complexity triggers
Scenarios that increase estate risk, such as blended families or multi-state property.
Common mistakes in Vermont
- Assuming a spouse automatically receives everything under state law.
- Leaving guardianship decisions to the court by default.
- Ignoring probate timelines, creditor notices, or court filings.
- Failing to coordinate beneficiary designations with estate intent.
- Missing state estate tax thresholds and filing rules.
Who is most exposed
Higher default risk in Vermont
- Families with minor children or dependents.
- Blended families or second marriages.
- Households with property in more than one state.
- Business owners without succession instructions.
- Higher-net-worth estates near state tax thresholds.
Next: explore planning options in Vermont
EstateRiskIQ does not provide legal advice. We highlight how default outcomes work so you can decide whether to explore professional guidance or planning tools.