Vermont Probate and Estate Tax Laws

A family dealing with the death of a loved one faces an array of emotional and stressful moments. On top of it all, tackling the probate and estate tax laws that always accompany death can be the ultimate tipping point. Gaining a basic understanding of probate and the estimated amount of taxes an estate may possibly owe can make getting through this process a little easier. This is a quick summary of the probate and estate tax laws in Vermont.

Vermont Probate and Estate Tax Laws Promote Proper Estate Planning

The best way to ensure that your property goes to the proper places after your death is by creating a valid will. Under Vermont probate laws, a will may not pass any real or personal property to a beneficiary unless the will is proved and allowed in the state's probate division. If the validity of a will fails in probate, the decedent's property will then pass through intestate succession.

The following table outlines the specifics of Vermont probate and estate tax laws.

Code Sections

Vermont Statute Title 14 Chapter 3: Probate And Procedure For Construction Of Wills

Vermont Statute Title 21 Chapter 190: Estate and Gift Tax

Probate Hearing and Notice

Under Vermont probate laws, when a will is delivered to probate accompanied by a petition to commence a probate proceeding, the court must schedule a hearing and notice must be given to beneficiaries within 30 days of allowing the will into probate.

Vermont Estate Taxes

If the decedent is a resident of Vermont at the time of death, the base amount of the estate tax is the sum of the credit for death taxes allowable to a decedent's estate under federal law. This base amount shall be reduced by the lesser of the following:

  • The total amount of all constitutionally valid State death taxes actually paid to other states; or

  • A sum equal to the proportion of the credit which the value of the property taxed by other states bears to the value of the decedent's total gross estate for federal estate tax purposes.

Federal Estate Taxes

Several federal tax matters affect the estate of persons who die in Vermont. Some of the most common federal tax matters are:

  • Paying federal individual income taxes

  • Paying federal estate income taxes

  • Paying federal estate taxes

  • Filing other federal tax forms

Completely understanding the complicated estate tax laws may be an unreasonable task. If you need to plan out your estate and would like legal assistance, you can contact a Vermont estate planning lawyer through FindLaw. Visit FindLaw's sections on estate tax laws and estate planning for more articles and information on this topic.

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