Vermont Estate Planning Checklist: Every Step in Order

Most people put off estate planning because they don't know where to start — or they assume it requires an expensive attorney. In Vermont, the core documents are straightforward, but the state's unique filing system and legal requirements mean a generic national checklist won't cover everything you need.

Here's the complete sequence, in the order you should tackle it.

Step 1: Inventory Your Assets

Before you draft anything, list every asset you own and how it's titled:

• Real property (home, family camp, rental property) — note whether it's in your name alone, joint tenancy, or tenancy by the entirety
• Bank accounts — check whether they have Payable on Death (POD) designations
• Investment and brokerage accounts — check for Transfer on Death (TOD) registrations
• Retirement accounts (401k, IRA, pension) — note current beneficiary designations
• Life insurance policies — note beneficiaries
• Vehicles, boats, snowmobiles — check whether they have TOD designations through the Vermont DMV
• Digital assets — email accounts, cryptocurrency, online financial accounts

The way each asset is titled determines whether it goes through probate or transfers automatically. This inventory is the foundation of every decision that follows.

Step 2: Execute a Last Will and Testament

Your will must comply with 14 V.S.A. § 5:

• Written on physical paper (no electronic wills in Vermont)
• Signed by you personally
• Witnessed by two credible, disinterested adults who sign in your presence and in each other's presence
• Add a self-proving affidavit (14 V.S.A. § 108) signed before a notary to avoid witness testimony during probate

In your will, you'll name an executor (personal representative), specify how assets should be distributed, and nominate guardians for minor children if applicable.

Step 3: Set Up Powers of Attorney

Durable Financial Power of Attorney. Under Vermont's Uniform Power of Attorney Act (14 V.S.A. Ch. 127), this document lets your chosen agent manage financial matters if you become incapacitated. The "durable" designation means it survives your incapacity — without it, the power dies precisely when you need it most.

Healthcare Power of Attorney / Advance Directive. Vermont's advance directive combines your healthcare proxy designation with your living will. You can register it for free with the Vermont Advance Directive Registry (VADR) so hospitals and emergency responders can access your wishes electronically.

Step 4: Complete a COLST (If Appropriate)

Vermont uses Clinician Orders for Life-Sustaining Treatment (COLST) rather than the national POLST form. Unlike an advance directive — which you complete yourself — a COLST is a medical order that must be signed by a clinician (MD, DO, PA, or APRN). It gives emergency medical technicians immediate, actionable instructions about CPR, ventilation, and other interventions.

A COLST is typically appropriate for people with serious illnesses or advanced age. Keep the original on your refrigerator where first responders can find it.

Step 5: Coordinate Non-Probate Transfers

This is where most estate plans fall apart. Even a perfect will only controls assets that pass through probate. Everything else transfers by its own rules:

• Real property: Execute an Enhanced Life Estate Deed (Lady Bird Deed) to transfer your home or camp directly to your heirs at death, bypassing probate and shielding the property from Medicaid recovery under Rule 4.108
• Bank accounts: Add POD designations so funds transfer directly to your named beneficiary
• Vehicles: File a TOD designation with the Vermont DMV using Form VT-007
• Retirement accounts and life insurance: Update beneficiary designations directly with the plan administrator

Make sure your non-probate designations don't contradict your will. Beneficiary designations override whatever your will says.

Step 6: File Real Property Documents

Vermont's filing system is unique — there are no county-level registries of deeds. Every real property document (deeds, Lady Bird Deeds, trust transfers) must be recorded with the town clerk in the municipality where the property is located.

For each filing, you'll need:

• The signed, notarized deed
• A completed Vermont Property Transfer Tax Return (PTTR) — required even when no tax is due
• Recording fees (typically $15 per page plus $15 for the PTTR)

Step 7: Evaluate Your Estate Tax Exposure

Vermont levies its own estate tax on estates exceeding $5 million at a flat 16% rate. The exemption is not portable — if one spouse dies without using their exemption, the surviving spouse cannot claim the unused portion. Families with combined assets near this threshold should consider a credit shelter trust to preserve both exemptions.

Also note the two-year gift lookback: taxable gifts made within two years of death are added back to the estate for Vermont estate tax purposes.

Step 8: Store Documents Properly

• Original will: in a fireproof safe or with your attorney. Do not put it in a bank safe deposit box — your executor may not have access
• Advance directive: register with VADR and give copies to your healthcare proxy, primary care physician, and local hospital
• Powers of attorney: give originals or certified copies to your named agents
• Deed recordings: keep copies of all recorded deeds and filing receipts from the town clerk
• Digital asset inventory: store in a secure location your executor can access, separate from the will (this inventory shouldn't become public record)

The Vermont Basic Estate Planning Kit provides templates and checklists for every step above, organized in this exact sequence with Vermont-specific filing instructions.

See more Vermont guides →