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State rules · Vermont

Vermont: estate, probate and Medicaid rules in one place

What applies in Vermont, collected from the site’s state datasets: estate and inheritance tax, transfer-on-death deeds, small-estate procedure, Medicaid long-term-care rules, and state income tax on retirement income. Where the dataset holds a source, the entry links it with its effective marker and check date; where it does not, the entry shows its verification status and the reason.

Quick answers

Does Vermont have a state estate tax?

State estate tax: Yes (32 V.S.A. § 7442a (imposition; $5,000,000 exclusion; 16% flat rate on the excess)). Estate-tax exemption: $5,000,000 (32 V.S.A. § 7442a (imposition; $5,000,000 exclusion; 16% flat rate on the excess); 2026 deaths). Estate-tax top rate: 16% (32 V.S.A. § 7442a (imposition; $5,000,000 exclusion; 16% flat rate on the excess); 2026 deaths).

Does Vermont have an inheritance tax?

Inheritance tax: No (32 V.S.A. § 7442a (imposition; $5,000,000 exclusion; 16% flat rate on the excess)).

Can you use a transfer-on-death deed in Vermont?

Transfer-on-death deed for real estate: None — not available for real property. No TOD-deed statute — Vermont uses a statutory enhanced life estate deed instead

What is the Medicaid look-back period in Vermont?

Look-back period: 60 months (Vermont DVHA Long-Term Care Medicaid informational packet; Dated July 3, 2024).

Does Vermont tax Social Security benefits?

Social Security benefits: Partly taxed or conditional (tax.vermont.gov).

State estate tax

Estate-tax dataset 2026.v2

State estate tax
YesVerified

Source: 32 V.S.A. § 7442a (imposition; $5,000,000 exclusion; 16% flat rate on the excess) · Checked July 18, 2026

Estate-tax exemption
$5,000,000Verified

Source: 32 V.S.A. § 7442a (imposition; $5,000,000 exclusion; 16% flat rate on the excess) · Effective: 2026 deaths · Checked July 18, 2026

Estate-tax filing threshold
$5,000,000Verified

Source: 32 V.S.A. § 7442a (imposition; $5,000,000 exclusion; 16% flat rate on the excess) · Checked July 18, 2026

Estate-tax top rate
16%Verified

Source: 32 V.S.A. § 7442a (imposition; $5,000,000 exclusion; 16% flat rate on the excess) · Effective: 2026 deaths · Checked July 18, 2026

Full detail: Vermont estate and inheritance tax page

Inheritance tax

Estate-tax dataset 2026.v2

Inheritance tax
NoVerified

Source: 32 V.S.A. § 7442a (imposition; $5,000,000 exclusion; 16% flat rate on the excess) · Checked July 18, 2026

Full detail: Vermont estate and inheritance tax page

Transfer-on-death deed

Transfer-on-death deed for real estate
None — not available for real propertyNot primary-verified

No TOD-deed statute — Vermont uses a statutory enhanced life estate deed instead

· Checked July 26, 2026

Controlling statute
Not primary-verified

No TOD-deed statute — Vermont uses a statutory enhanced life estate deed instead

· Checked July 26, 2026

Full detail: Vermont transfer-on-death deed page

Small-estate procedure

Ceiling and property limit
$45,000 estate consisting entirely of personal property; 14-day objection periodVerified

Source: 14 V.S.A. §§ 1901–1903 · Effective: current · Checked August 23, 2026

Full detail: Vermont small-estate procedure page

Medicaid long-term-care eligibility

Medicaid dataset 2026.v16

Institutional income limit
$2,982 per monthVerified
  • Applies to: single applicant.

Source: Vermont DVHA 2026 Standards Change for Healthcare · Effective: Updated April 1, 2026; long-term-care figures effective January 1, 2026 · Checked November 14, 2026

Applicant resource limit
$2,000Verified
  • Applies to: single applicant.

Source: Vermont DVHA 2026 Standards Change for Healthcare · Effective: Updated April 1, 2026; long-term-care figures effective January 1, 2026 · Checked November 14, 2026

Maximum community-spouse resource allowance
$162,660Verified
  • Applies to: institutionalized applicant with a community spouse.

Source: Vermont DVHA 2026 Standards Change for Healthcare · Effective: Updated April 1, 2026; long-term-care figures effective January 1, 2026 · Checked November 14, 2026

Community-spouse monthly maintenance-needs allowance
$2,707 standard income allocation to $4,066.50 maximum income allocation per monthVerified
  • Applies to: institutionalized applicant with a community spouse.

Source: Vermont DVHA 2026 Standards Change for Healthcare (Version 5, updated 10/01/2026) · Effective: Version 5 updated 10/01/2026; community-spouse allocations effective 1/1/26 · Checked November 14, 2026

Home-equity limit
$752,000Verified
  • Applies to: applicant subject to the substantial-home-equity rule.

Source: Vermont DVHA 2026 Standards Change for Healthcare · Effective: Updated April 1, 2026; long-term-care figures effective January 1, 2026 · Checked November 14, 2026

Full detail: Vermont Medicaid eligibility page

Medicaid look-back

Medicaid dataset 2026.v16

Look-back period
60 monthsVerified

Source: Vermont DVHA Long-Term Care Medicaid informational packet · Effective: Dated July 3, 2024 · Checked November 14, 2026

Transfer-penalty divisor
$12,535.13 per month and $417.84 per dayVerified

Source: Vermont DVHA 2026 Standards Change for Healthcare (Version 5, updated 10/01/2026), average cost to a private patient of nursing-facility services · Effective: Effective 10/1/25, as republished in Version 5 updated 10/01/2026 · Checked November 14, 2026

How the state administers the penalty
Vermont reviews transfers of income and resources during the 60 months before the long-term-care Medicaid application.Verified

Source: Vermont DVHA Long-Term Care Medicaid informational packet · Effective: Dated July 3, 2024 · Checked November 14, 2026

Full detail: Vermont Medicaid look-back page

Medicaid estate recovery

Medicaid dataset 2026.v16

Recovery scope
Vermont files a probate claim for nursing-facility, home-based long-term-care, and related hospital and prescription-drug payments; the estate is real and personal property included in probate.Verified

Source: Vermont DVHA Long-Term Care Recovery From Estates notice · Effective: Form revised May 2012 · Checked November 14, 2026

Controlling authority
Vermont DVHA Estate Recovery standard operating procedureVerified

Source: Vermont DVHA Estate Recovery standard operating procedure · Effective: Issued September 21, 2023; annual review required · Checked November 14, 2026

Exemptions and deferrals
Recovery does not proceed while there is a surviving spouse or a surviving child who is blind or permanently disabled.Verified

Source: Vermont DVHA Estate Recovery standard operating procedure · Effective: Issued September 21, 2023; annual review required · Checked November 14, 2026

Hardship waiver
A qualifying homestead is protected when it passes to a lineal heir or sibling below 300% of the federal poverty level or to one who contributed significantly enough to delay or avoid nursing-home placement.Verified

Source: 33 V.S.A. section 1906a · Also: Vermont DVHA Long-Term Care Recovery From Estates notice · Effective: Last amended effective May 20, 2014 · Checked November 14, 2026

Lien practice
Vermont does not place Medicaid liens on property; it recovers by filing a claim against the probate estate.Verified

Source: Vermont Medicaid State Plan, Attachment 4.17-A, Liens and Adjustments or Recoveries · Also: Vermont Medicaid State Plan, section 4.17 Liens and Adjustments or Recoveries, page 53 · Also: Vermont DVHA Long-Term Care Recovery From Estates notice · Effective: TN No. 99-8; approved 07/20/00; effective 07/01/99 · Checked November 14, 2026

Full detail: Vermont Medicaid estate-recovery page

State income tax on retirement income

Retirement-income tax dataset 2026.v4

Social Security benefits
Partly taxed or conditionalVerified
  • Vermont excludes all or a portion of federally taxable Social Security benefits for qualifying taxpayers, subject to statutory income limitations and phaseout rules based upon filing status and adjusted gross income.

Source: tax.vermont.gov · Checked August 15, 2026

Public pensions
Pending

Primary-source classification has not yet been completed for this income type.

Private pensions
Pending

Primary-source classification has not yet been completed for this income type.

IRA and 401(k) distributions
Pending

Primary-source classification has not yet been completed for this income type.

Military retirement pay
Pending

Primary-source classification has not yet been completed for this income type.

Full detail: Retirement-income tax dataset, all states (JSON)

About this page

This page assembles entries from datasets the site already publishes; it adds no figure of its own. Entries marked “Not yet verified” or “Pending” have no primary-source value in the underlying dataset yet. Rules change, so confirm anything you plan to act on with the source, the state agency, or a licensed attorney.

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