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7 Ways to Help Your Vermont Estate Avoid Probate

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Probate, the legal process of validating a Will and distributing assets after someone passes away, can be time-consuming, expensive, and public in nature. Not surprisingly, people often take steps to help their estate avoid probate after they are gone. Because estate planning is a highly personal and individualized endeavor, you should work with your estate planning attorney to determine how your estate can avoid probate. In the meantime, however, the Essex Junction attorneys at Unsworth LaPlante, PLLC discuss seven ways you can help your Vermont estate avoid probate.

  1. Establish a Living Trust. One of the most popular methods to avoid probate is using a living trust to distribute the majority of your estate assets. With a living trust, you transfer ownership of your assets to the trust, which you control as the Trustee during your lifetime. Upon your death, the assets held in the trust pass directly to the beneficiaries named in the trust document, avoiding probate altogether. This method ensures privacy, as trust documents are not subject to public record like Wills filed in probate court.
  2. Joint Ownership with Rights of Survivorship. Assets held in joint tenancy with rights of survivorship automatically transfer to the surviving owner(s) upon death, meaning they bypass probate altogether. Common assets held in joint tenancy include real estate and bank accounts. It is crucial, however, to consider the implications of joint ownership, as creditors of one owner may be able to reach the asset. Moreover, a joint owner has rights while you are alive, potentially limiting your ability to sell or encumber the asset.
  3. Beneficiary Designations. Certain assets, such as retirement accounts, life insurance policies, and payable-on-death (POD) or transfer-on-death (TOD) accounts, allow you to designate beneficiaries who will inherit the asset upon your death. When you pass away, these assets pass directly to the named beneficiaries, avoiding probate entirely. Unlike joint ownership, the beneficiary of a POD or TOD account has no legal ownership interest in the asset while you are alive.
  4. Gifts and Lifetime Transfers. Another way to minimize assets subject to probate is by gifting property or assets during your lifetime. By transferring assets to heirs before death, you reduce the size of your estate and, consequently, the probate process. Be mindful, however, of potential gift tax implications and be sure to make use of tax avoidance strategies such as the yearly exclusion. The yearly exclusion allows you to transfer up to $19,000 (as of 2025) in assets to an unlimited number of beneficiaries each year tax-free.
  5. Small Estate Alternatives. In some jurisdictions, estates valued below a certain threshold may qualify for simplified probate procedures or bypass probate altogether. Small estate affidavits, also known as affidavit of heirship or affidavit for collection of personal property, enable heirs to claim assets without the need for probate court involvement. Requirements vary by state, so it is essential to familiarize yourself with local laws. In Vermont, a small estate alternative may be available for estates valued at less than $45,000 and that do not include any real property.
  6. Establishing Joint Bank Accounts. Similar to joint ownership of assets, establishing joint bank accounts with a trusted individual allows funds to transfer directly to the co-owner(s) upon your death; however, exercise caution when adding joint owners to accounts, as they gain immediate access to the funds and could potentially misuse them. Additionally, joint accounts may be subject to creditor claims against the co-owner.
  7. Use of Trusts for Specific Assets. In addition to a revocable living trust, consider using specialized trusts for specific assets or purposes. For example, a special needs trust can provide for a disabled loved one without jeopardizing their eligibility for government benefits. By segregating certain assets into trusts, you can streamline the distribution process and avoid probate for those assets.

Do You Have Additional Questions about How to Avoid Probate in Vermont?

For more information, please attend one of our upcoming FREE webinars. If you have additional questions or concerns about what you can do to help your Vermont estate avoid probate, contact an experienced Essex Junction estate planning attorney at Unsworth LaPlante, PLLC by calling 802-879-7133 to schedule your appointment today.

Wendy S. Hillmuth
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