What property does not pass under a will in Vermont?

When it comes to estate planning, understanding which assets pass under a will and which do not is crucial. In Vermont, there are specific types of property that bypass a will, ensuring they are distributed according to their designated beneficiaries. Knowing what property does not pass under a will in Vermont can help individuals make informed decisions when creating their estate plans.

Joint Property

One type of property that does not pass under a will in Vermont is joint property. When property is held jointly with rights of survivorship, it automatically passes to the surviving joint owner upon the death of the other owner. This means that the property does not form part of the deceased owner's estate and is not subject to probate.

Life Insurance Policies

Proceeds from life insurance policies are another example of assets that do not pass under a will in Vermont. Life insurance policies typically have designated beneficiaries who will receive the proceeds directly upon the policyholder's death. These proceeds are not considered part of the probate estate and are not governed by the terms of the will.

Trusts

Assets held in a trust are also exempt from probate and do not pass under a will in Vermont. A trust is a legal arrangement where a trustee holds assets on behalf of the beneficiaries. The terms of the trust dictate how the assets are to be distributed, bypassing the probate process and the terms of the will.

Legal Code Reference

According to Vermont Statutes Title 14, Chapter 41, Section 1901, certain types of property, such as joint property, life insurance policies, and assets held in trust, are not subject to probate and do not pass under a will.

Ensuring Proper Estate Planning

Understanding what property does not pass under a will in Vermont is essential for individuals looking to create comprehensive estate plans. By taking into account assets like joint property, life insurance policies, and trusts, individuals can ensure that their wishes are carried out effectively and that their loved ones are provided for according to their intentions.

Buried in Work's Additional Resources

Buried in Work provides Vermont state-specific service provider directories and information related to estate preparation, end-of-life tasks, and estate transition information. Click here to learn more.