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How Assets Transfer After Death in Vermont

Not everything the deceased owned has to go through the Probate Division. Working out which assets already carry their own instruction saves months and, on a banded Vermont filing fee, hundreds of dollars.

Ask the same question of every asset: does this thing already say who takes it, by survivorship, by a beneficiary designation, by a title designation, or by a recorded enhanced life estate deed? In Vermont the answer differs between land and vehicles, so never infer one from the other.

Transfers Automatically (No Probate)

These assets carry their own instruction for who takes them, so no court appointment is needed.

Usually Needs an Estate Opened

These assets have no built-in instruction, so a fiduciary with letters of administration has to move them.

Vermont Rules That Change the Answer

Vermont-specific rules that decide an asset differently from the way a neighbouring state would.

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Pro Tips

  • -Ask the bank what the account order or signature card actually says, rather than reading two names as survivorship
  • -Check every account for a payable on death payee before assuming probate is needed
  • -Do not close a joint account immediately; the last utility and funeral bills often still clear through it
  • -Open a separate estate account as soon as you are appointed, and never mix estate money with your own
  • -A payable on death payee should hold the money for a while, because 8 V.S.A. § 14205(c) reaches back for two years

Frequently Asked Questions

What is the difference between probate and non-probate assets?
Probate assets are owned solely by the deceased with no designated beneficiary, requiring court supervision to transfer. Non-probate assets have built-in transfer mechanisms like beneficiary designations, joint ownership, or trust ownership.
What assets avoid probate in Vermont?
Assets that typically avoid probate include: life insurance with named beneficiaries, retirement accounts (401k, IRA) with beneficiaries, jointly owned property with right of survivorship, TOD (Transfer on Death) accounts, POD (Payable on Death) accounts, and assets held in a living trust.
What is a TOD or POD designation?
TOD (Transfer on Death) and POD (Payable on Death) are beneficiary designations that allow assets to pass directly to a named beneficiary upon death, bypassing probate.
Does joint ownership avoid probate?
Only joint ownership with "right of survivorship" avoids probate. This includes joint tenancy with right of survivorship and tenancy by the entireties (for married couples in some states).
SourcesOfficial references used for this page

Information current as of April 11, 2026

Settled Estate is not a law firm, and this content is for informational purposes only and does not constitute legal advice. Probate laws and procedures in Vermont can change. Consult with a qualified attorney for advice specific to your situation. Full disclaimer.

More Vermont Resources

Explore the rest of the Vermont probate hub.

Do I need probate?4 pages
Costs and money5 pages
File for probate2 pages
Transfer assets3 pages
Learn and reference5 pages