Transfer-on-Death Deed Requirements in Vermont
At a glance
| Governing law | No real-property TOD/beneficiary-deed statute or URPTODA. Vermont instead enacted the Enhanced Life Estate Deed Act, 27 V.S.A. ch. 6, §§ 652-658 (2019 Act 145, effective July 13, 2020) |
|---|---|
| TOD deed available? | Not available as a TOD deed. Closest statutory substitute: enhanced life estate deed (ELE deed), which reserves the owner's life estate and lifetime power to convey, revise, or revoke while giving the grantee only a contingent remainder |
| How to sign it | N/A for a TOD deed. An ELE deed must be validly executed and recorded; its reserved rights and contingent remainder must be stated in the deed (27 V.S.A. §§ 652-654) |
| Recording requirement | N/A for a TOD deed. The statutory substitute operates through an executed and recorded ELE deed in the municipal land records, not a record-before-death beneficiary designation |
| Revoking it | N/A for a TOD deed. An ELE deed is revoked by recording a deed from the grantor to the grantor, or revised by recording a replacement ELE deed naming all grantees; grantee consent or notice is unnecessary (27 V.S.A. §§ 653(5)-(6), 656) |
| Eligible property & owner | N/A for a TOD deed. An ELE grantor must be a natural person and the deed concerns Vermont real property; guardian use needs Probate Division approval, and an agent needs a compliant power of attorney (27 V.S.A. §§ 653(4), 657) |
| Beneficiary survival & effect | N/A for a TOD deed. ELE grantee has a contingent remainder with no vested rights during the owner's life; at death title vests subject to recorded encumbrances. If a grantee died first, § 658 sends the interest to heirs/beneficiaries or surviving joint grantees, depending on title and deed terms |
| Creditor & Medicaid reach | N/A for a TOD deed. During life, an ELE deed does not change the grantor's ownership or creditor rights and does not expose the property to the grantee's creditors; the deed is not a guaranteed Medicaid shield (27 V.S.A. § 654(a)) |
Vermont does not have a statutory transfer-on-death deed for real estate. Instead, it created a close but legally different tool: the enhanced life estate deed, or ELE deed, under 27 V.S.A. Chapter 6.
What Vermont offers instead
Under §§ 652-653, an ELE deed reserves the owner's common-law life estate and the right to convey the property during life. The grantee receives only a contingent remainder and has no vested rights before the owner's death. If the owner has not conveyed the property first, title vests at death subject to recorded encumbrances.
Under § 654, the recorded deed does not change the owner's ownership or creditor rights, create a present legal or equitable interest for the grantee, or expose the property to the grantee's creditors. The owner may sell or otherwise convey without the grantee's consent.
Revocation is unusually specific. Under §§ 653 and 656, the owner revokes by recording a deed from the owner back to the owner, and revises by recording a new ELE deed naming all intended grantees. A mortgage does not revoke the ELE deed; it encumbers the interests.
If a grantee dies first, the interest does not automatically disappear. § 658 sends the interest to the deceased grantee's heirs or beneficiaries in the sole-grantee and tenants-in- common settings, subject to the deed's terms and Probate Division direction; surviving joint grantees take in the joint-tenancy setting.
What trips people up
- An ELE deed is not a TOD deed. It uses a life-estate and contingent-remainder architecture, even though the practical goal is similar.
- Revocation is not a generic cancellation form. Record a deed from yourself to yourself under the statutory definition.
- A revised deed must name everyone. To add a grantee, the replacement ELE deed must repeat all grantees who should remain.
- A deceased grantee's share does not simply lapse. Section 658 supplies different heir/beneficiary and joint-tenancy outcomes.
Common questions
Does the grantee own part of my house now? The statute says the remainder is contingent and creates no present legal or equitable interest before your death.
Can I sell without the grantee's signature? Yes. Section 654 allows you to convey the property without the grantee's joinder, consent, agreement, or notice.
Can my agent sign an ELE deed? § 657 permits it when the power of attorney complies with the applicable Vermont POA statute, including relevant gifting and self-dealing rules.
Is an ELE deed protected from Medicaid recovery? The Act does not promise that result. Medicaid planning depends on eligibility, transfer, lien, and estate-recovery rules outside Chapter 6, so obtain Vermont-specific advice before relying on it.
Statutes and sources
- 27 V.S.A. §§ 652-658 (Enhanced Life Estate Deed Act) — http://legislature.vermont.gov/statutes/section/27/006/00652 (accessed 2026-07-12)
Source links
Every statute quoted above, linked, with the date we checked it.
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