Should you get a will or a trust in Vermont?
It’s the first question almost every new estate planning client asks. And the honest answer — the answer that infuriates clients who want a straight recommendation on the phone — is: it depends on what you own, what you want the plan to do, and how much you value privacy and probate avoidance.
Here’s how to actually think about it.
What a Vermont Will Does
A last will and testament is a written document that takes effect at your death. It says:
- Who inherits your property
- Who administers your estate (your executor)
- Who cares for your minor children (their guardian)
To take effect, a will has to be admitted to probate by the Vermont probate court. The probate process transfers title from you (deceased) to your beneficiaries under the court’s supervision.
Probate has some benefits — court oversight, formal creditor claims, clear legal authority for the executor. It also has real drawbacks — time, cost, and public record.
What a Vermont Trust Does
A revocable living trust is a legal entity you create during your lifetime. You transfer property into the trust. The trust owns the property. You keep control as the trustee.
When you die, the trust doesn’t die. It has a successor trustee (someone you named) who steps in and distributes the property according to your written instructions, without any court supervision.
Property held in a properly-funded revocable trust bypasses Vermont probate entirely. That’s the headline benefit.
The Comparison Table
Here’s how they stack up:
| Feature | Vermont Will | Vermont Trust |
|---|---|---|
| Effective when | At death | Right now |
| Court supervision | Yes, through probate | No |
| Time to distribute | Usually 9-18 months | Days to weeks |
| Public record | Yes | No |
| Cost during your life | Lower (just the will) | Higher (trust plus funding) |
| Cost at death | Higher (probate fees) | Lower |
| Real estate handling | Passes through probate | Bypasses probate |
| Incapacity planning | Requires separate POA | Trustee steps in automatically |
| Ease of changes | Amendment or new will | Trust amendment |
When a Will-Based Plan Is Enough
Our Will-Based Plan is the right choice for many Vermonters. Specifically:
- You don’t own real estate. Real estate is the biggest driver of probate cost and delay. Without it, probate is often simpler.
- Your assets are relatively simple. Bank accounts, retirement accounts, and life insurance already pass by beneficiary designation. If your estate is largely those, probate on the rest is manageable.
- You’re comfortable with probate. Vermont probate isn’t a nightmare. It’s a process. If you don’t have specific reasons to avoid it, a will works.
- You want the lower up-front cost. A will-based plan costs less to set up. If your priorities are elsewhere, that matters.
- Your family situation is straightforward. First marriage, mutual children, clear beneficiaries. Wills serve simple situations well.
When a Trust-Based Plan Is Usually Better
Our Trust-Based Plan is the right choice when any of the following are true:
You own Vermont real estate. This is the single biggest reason to consider a trust. Real estate has to go through probate to transfer title unless it’s held in trust (or held jointly with survivorship rights, which has its own drawbacks). Funding your Vermont home into a revocable trust means your family avoids that entire process.
You value privacy. Wills are public record. Anyone can go to the probate court and read your will, see your inventory, and see who inherited what. Trusts are private documents. If you don’t want the neighbors to know what you owned or how it was divided, a trust is the answer.
You want a smooth transition. Trusts distribute in days or weeks. Probate takes 9 to 18 months. If your family will need access to funds quickly — to pay a mortgage, keep a business running, cover funeral expenses — a trust matters.
You have a blended family. Second marriages, stepchildren, and children from prior relationships often need more careful distribution planning than a simple will supports. Trusts let you build in staged distributions, life-estate arrangements, and other structures.
You want incapacity planning built in. If you become incapacitated, your revocable trust already has a successor trustee ready to step in. A will only works after death — it does nothing for you while you’re alive but incapacitated.
You have a beneficiary who shouldn’t inherit outright. A beneficiary with special needs, addiction issues, poor money management, or creditor problems benefits from having their share held in ongoing trust rather than distributed outright.
Your estate is large. For larger Vermont estates, trust planning creates opportunities for tax efficiency and structured wealth transfer that wills alone can’t accomplish.
What “Funding the Trust” Actually Means
Here’s the thing about trusts that trips people up: the trust only avoids probate on assets that are actually titled in the trust’s name.
Setting up a beautifully-drafted trust and then leaving your bank account, your house, and your investment accounts in your individual name doesn’t work. Those assets still go through probate.
Funding a trust means:
- Real estate: Recording a deed transferring the property from you individually to you as trustee of the trust.
- Bank and investment accounts: Retitling accounts in the trust’s name, or naming the trust as the pay-on-death beneficiary.
- Business interests: Assigning LLC membership interests or stock to the trust.
- Personal property: A general assignment of personal property to the trust.
Retirement accounts (IRAs, 401(k)s) and life insurance work differently — they pass by beneficiary designation, and there are tax reasons not to name a trust as the primary beneficiary in most cases.
Our Trust-Based Plan includes guidance on funding, and we prepare the deed transferring one piece of real property into your trust at no additional charge. For additional properties or complex funding, we quote the additional work up front.
What Everyone Needs Regardless
No matter which plan you choose, you also need:
- Durable Financial Power of Attorney. Names someone to handle your finances if you’re incapacitated.
- Advance Directive for Health Care. Vermont’s medical decision document. Names your health care agent and records your end-of-life wishes.
- HIPAA Authorization. Lets your loved ones talk to your doctors.
All three come standard in both our Will-Based Plan and our Trust-Based Plan. A “will” without these documents is an incomplete plan.
The Honest Recommendation
Most Vermont homeowners benefit from a trust-based plan. The extra investment usually pays for itself many times over in avoided probate costs and time.
Most Vermont renters and young adults do well with a will-based plan. Simple, effective, and appropriate to the assets involved.
But this is a decision worth talking through with an attorney, because the specifics of your family, your assets, and your goals matter. At Basha Law we do that in a 30-minute consultation. You leave knowing exactly which plan makes sense for you and exactly what it costs.
Want to talk through your specific situation? Schedule a consultation with Attorney Basha, or call (802) 448-4341.