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What Happens to My Assets If I Die Intestate in Vermont?

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Like many Americans, you might not have an estate plan in place, despite knowing that it is important. Even if friends and family have encouraged you to create one, you may not have taken action yet. One reason for delaying might be that you do not fully understand the consequences of dying without a plan. To help clarify what can happen, and to encourage you to take steps to protect your assets and loved ones, the Essex Junction attorneys at Unsworth LaPlante, PLLC explain what happens to your estate if you die intestate in Vermont.

What Does It Mean to Die Intestate?

When someone passes away leaving a valid Last Will and Testament, their estate is considered a “testate” estate. If no Will or trust exists, however, the estate is classified as an “intestate” estate. Without a legally recognized estate plan, state law will dictate how your assets are distributed. To avoid this scenario, every adult should at least have a Will in place. Ideally, that Will serves as the foundation for a broader estate plan that evolves over time as your financial situation and family circumstances change.

Vermont Intestate Succession Laws

Dying intestate in Vermont means that state laws will determine how your assets are distributed. Instead of you deciding who inherits your property, the state’s intestate succession laws will dictate the process based on your surviving relatives. The distribution of your estate will follow these rules:

  • Spouse but no children or parents: Your spouse inherits everything.
  • Spouse and children: Your spouse inherits half of your estate, and your children inherit the remainder.
  • Children but no spouse: Your children inherit everything.
  • Parents but no spouse or children: Your parents inherit everything.
  • Siblings but no spouse, children, or parents: Your siblings inherit your estate.

Defining “Children” Under Vermont Intestate Succession Laws

For the purpose of intestate succession, Vermont law includes specific guidelines regarding children, as follows:

  • Adopted children have the same inheritance rights as biological children.
  • Foster children and stepchildren do not automatically inherit unless legally adopted.
  • Children born after the parent’s death may still inherit if they were conceived before the parent’s passing.
  • Children born outside of marriage can inherit if legal paternity is established.
  • Grandchildren can only inherit if their parent (the direct descendant of the deceased) has passed away before the deceased.

Challenges with Intestate Distribution

Even if you believe Vermont’s intestate succession laws reflect your wishes, there are still potential challenges. One of the biggest issues is how your assets are divided. Some assets, like bank accounts, can be easily split, but others, like real estate or personal heirlooms, present complications. For example, if you leave behind a home valued at $500,000 and you have three children, they may have different ideas about what to do with it. One child may want to keep and live in the home, while the others may want to sell it and divide the proceeds. Without a Will providing guidance, disputes can arise, and the property may ultimately need to be sold to fairly distribute the assets. Similarly, sentimental items such as jewelry, collectibles, or family heirlooms can cause conflicts among heirs when there are no specific instructions in place.

Dying intestate also means you forfeit the right to choose the person responsible for administering your estate. In Vermont, the probate court will appoint an administrator, who may not be someone you would have chosen. This person will be tasked with managing your estate, resolving any disputes, paying outstanding debts, and distributing assets according to the state’s intestacy laws. If your estate is complex or if conflicts arise, this process can become lengthy, expensive, and emotionally challenging for your loved ones.

Protecting Your Wishes with an Estate Plan

The only way to ensure that your assets are distributed according to your wishes and to prevent unnecessary stress for your loved ones is to have a legally enforceable estate plan in place that reflects your wishes. Do not leave these important decisions to the State of Vermont. Instead, talk to an estate planning attorney to make your intentions clear with a legally binding plan.

Do You Have Additional Questions about Leaving Behind an Intestate Estate in Vermont?

For more information, please attend one of our upcoming FREE webinars. If you have additional questions about leaving behind an intestate estate in Vermont, 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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