Determining Whether a Transferred Vehicle Is Estate Property in Vermont

Detailed Answer

Under Vermont law, personal property owned by a decedent at death typically passes through probate unless it transfers automatically by operation of law or by a valid nonprobate designation. Vehicles are classified as personal property under 14 V.S.A. § 72. To decide whether a vehicle must be treated as estate property, follow these steps:

1. Check for a Transfer-on-Death (TOD) Designation

Vermont allows owners to register a beneficiary who will receive title when the owner dies. If the decedent completed a TOD registration with the Vermont Department of Motor Vehicles under 23 V.S.A. § 305a, the vehicle passes directly to that beneficiary outside of probate.

2. Examine Title for Joint Ownership

If the vehicle’s title lists two or more owners with rights of survivorship, ownership vests automatically in the surviving co-owner at death. Such joint tenancy with right of survivorship is a nonprobate transfer under Vermont probate rules.

3. Identify Lifetime Transfers

A valid gift or sale of the vehicle before the decedent’s death removes it from the estate. Review DMV records, bills of sale, and title transfers to confirm whether ownership changed during the decedent’s lifetime.

4. Review the Will and Estate Plan

If the will specifically devises the vehicle, it passes through probate under the will’s terms. However, a nonprobate TOD or joint tenancy designation will override a testamentary gift.

5. Probate Administration if No Nonprobate Transfer Exists

If the vehicle lacks a TOD designation, joint tenancy, or prior transfer, it is estate property. You must include it in the estate inventory filed with Probate Division of the Superior Court and distribute it under the will or Vermont’s intestacy statutes (14 V.S.A. § 3501).

Helpful Hints

• Obtain the original vehicle title and registration from the decedent’s records.
• Contact the Vermont DMV to confirm any TOD beneficiary or joint-owner listing.
• Gather bills of sale, gift declarations, or transfer documents showing any lifetime transfers.
• Consult the decedent’s will or trust to see if the vehicle is specifically devised.
• Value the vehicle at its fair market value as of the decedent’s date of death for probate purposes.
• File an estate inventory and account for the vehicle under Vermont probate procedures.
• Keep clear records of every step to help the executor or administrator meet court deadlines.

Disclaimer: This article is for educational purposes and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation.