Disclaimer: This article is for informational purposes and does not constitute legal advice.
Detailed Answer
Under Vermont law, certain property interests transfer to a beneficiary or surviving owner automatically at death. Other assets remain part of the decedent’s probate estate and must pass under a valid will or Vermont’s intestacy rules.
Automatic Transfers at Death
- Joint Tenancy with Right of Survivorship: When two or more people hold real estate as joint tenants, the survivor absorbs the decedent’s share immediately upon death (27 V.S.A. §2-201).
- Transfer-on-Death Deeds: Vermont permits deeds that name a beneficiary who gains title at death without probate. The deed remains dormant until the grantor’s death (27 V.S.A. §1-405).
- Payable-on-Death (POD) Accounts: Bank and brokerage accounts can designate a payable-on-death beneficiary. Funds pass directly to that person without going through probate (14 V.S.A. §4503).
- Trust Assets: Property held in a living trust becomes governed by trust terms and avoids probate altogether.
- Life Insurance and Retirement Accounts: Beneficiary designations on policies, IRAs or 401(k) plans direct those proceeds outside probate.
Why a Will Requires Probate
A will only controls assets owned solely in the decedent’s name at death. Probate offers a formal court-supervised process to:
- Prove the will’s validity (14 V.S.A. §3371).
- Identify and inventory all probate assets.
- Pay debts, taxes and administration expenses.
- Distribute remaining assets according to the will.
When Probate Applies
If the decedent owned real estate or personal property solely in their name and without a beneficiary designation, that property must pass through probate. The court appoints a personal representative to carry out these duties.
Helpful Hints
- Review deed language carefully. Confirm whether you hold property as joint tenants or tenants in common.
- Consider a transfer-on-death deed for real estate you own alone.
- Check all account beneficiary designations for accuracy and currency.
- Compile a list of assets and title documents before filing for probate.
- Consult a Vermont probate attorney for guidance tailored to your situation.