Detailed Answer

Short answer: In Vermont, assets that pass automatically by right of survivorship (for example, joint bank accounts titled with a right of survivorship, payable-on-death bank accounts, transfer-on-death securities, life insurance payable to a named beneficiary, or retirement accounts with named beneficiaries) generally pass outside probate. Those assets are not part of the decedent’s probate estate and typically do not have to be listed on the formal probate inventory as estate property.

Explanation and a simple hypothetical: Imagine your mother held a bank account titled as “Jane Doe and John Doe, with right of survivorship.” When Jane dies, the account balance goes directly to John by operation of the survivorship title, not through probate. Because the funds transferred by operation of law at the moment of death, they are not usually reported as assets of Jane’s probate estate on the inventory that the personal representative files with the probate court.

Why survivorship assets usually are excluded from the probate inventory

• Probate inventories are intended to list assets that belong to the decedent and are subject to administration by the probate court and the personal representative. Assets that pass immediately to another person by operation of law (survivorship, beneficiary designation, or contract) are not controlled by the probate process and therefore are not part of the probate estate.
• Common non-probate transfers include joint tenancy with right of survivorship, tenancy by the entirety (for spouses), payable-on-death (POD) or transfer-on-death (TOD) designations, life insurance proceeds paid to a named beneficiary, and retirement accounts with beneficiary designations.

When you should still disclose or list survivorship assets

• Some probate clerks or local court rules want a separate statement or schedule that lists non-probate transfers for the court file even though those assets are not part of the estate. Check local probate practice or ask the clerk.
• For transparency, many personal representatives prepare a separate list of non-probate assets and provide it to beneficiaries and interested parties so everyone understands what passed outside probate.
• If the decedent used joint accounts or beneficiary designations to shield assets from creditors or to defeat the decedent’s known estate plan, interested parties (creditors or heirs) may challenge the transfer. In such disputes, a court may look beyond the title and could treat the asset as part of the estate if there is evidence of fraud, undue influence, or an intent inconsistent with survivorship.
• If the estate appears insolvent, creditors may seek recovery from assets that look like they were titled to pass by survivorship but in substance belonged to the decedent. In that situation, listing or documenting such assets and the circumstances of their transfer becomes important.

Practical steps for a Vermont personal representative or successor who is unsure

1. Review account titles and beneficiary designations: Gather deeds, bank statements, account contracts, insurance policies, and retirement plan documents to see which assets had beneficiary designations or survivorship titles.
2. Ask the probate clerk: Local probate practice varies. If you are opening a probate estate or filing an inventory, contact the probate clerk in the county where the estate is being administered and confirm what they require to be filed. Some clerks expect only probate assets on the official inventory but want a separate list of non-probate transfers.
3. Prepare two lists: one for probate assets (what you will inventory) and one for non-probate assets that passed by survivorship or beneficiary designation. Provide the non-probate list to beneficiaries and keep copies in the estate file.
4. Keep documentation: If an asset passed to you or another survivor by right of survivorship, keep copies of transfer documents, account statements, and any bank or financial-institution correspondence showing how the asset moved. That documentation protects you if a claim later arises.
5. Get help if there is a dispute or large assets involved: If heirs or creditors contest whether an asset should be part of the estate, or if the non-probate transfers are substantial, consult a Vermont probate attorney to evaluate possible claims (fraud, constructive trust, breach of fiduciary duty) and to protect the personal representative.

Common exceptions and situations that require care

• Joint ownership where the decedent paid all of the purchase price: Courts sometimes treat the surviving joint owner as holding the property subject to a constructive trust for the decedent’s estate
• Titles changed shortly before death: Transfers made near the time of death can be scrutinized for fraud or tax avoidance
• Estate insolvency: Creditors may pursue non-probate transfers if state law or equitable doctrines allow recovery

Where to find authoritative guidance and forms

Vermont’s probate court and clerk’s offices provide local rules, forms, and instructions. If you need specific statutory language or forms, contact the probate division of the Vermont Judiciary or the probate court clerk in the county where the decedent lived.

Bottom line: You usually do not include assets that passed automatically by right of survivorship on the probate inventory of the decedent’s estate in Vermont. However, prepare a separate, documented list of non-probate transfers, check local probate requirements, and consult an attorney if the transfers are large, contested, or could affect creditor claims.

Disclaimer: This article explains general principles and is not legal advice. Laws vary by facts and change over time. For advice about a specific situation in Vermont, consult a licensed Vermont attorney.

Helpful Hints

• Do a title inventory: Separate probate assets from non-probate assets when you first gather records.
• Ask the probate clerk early: Confirm whether your county wants a separate list of survivorship or beneficiary-designated assets.
• Keep originals and copies: Store deeds, account statements, beneficiary forms, and any affidavits of survivorship or small-estate affidavits safely.
• Document intent and contributions: If contention is possible, collect evidence showing who paid for property and whether the deceased intended the survivorship ownership.
• Notify creditors and beneficiaries timely: Even if assets pass outside probate, creditor timelines and notice rules may still affect claims—get guidance if the estate may be insolvent.
• Consult a probate attorney for large or contested estates: A lawyer can advise whether non-probate transfers might be reversed or treated as estate property under Vermont law.