Probating an Estate in Vermont
Probate.
It’s a big scary word.
The process of probating an estate is time consuming, emotionally draining, and more regulated than you could ever imagine.
Nonetheless, I am here to tell you that there is nothing to fear about Probate. In fact, the steps are all spelled out in this helpful document.
Note that this is very specific to Vermont. Every state has its own forms and procedures.
Understanding Probate Basics
Even if someone has a "Last Will and Testament" in Vermont you'll still need to go through probate. If real estate is involved and the value is more than $45,000 it cannot be handled as a "Small Estate." Instead you’ll open a "Formal Estate" with Vermont Superior Court: Probate Division.
The only workaround I know of is to put everything in a trust. When someone dies with everything they own in a trust, all the assets remain in the trust, and only the trustee changes. This is spelled out in the trust document. And you can change a trust over time, just like you can change a will.
There are excellent local attorneys who specialize in estate planning and trusts, so they can guide you through your options and ensure everything is in order. This is something I encourage you to do for your heirs, and to talk about with your parents to make your life easier when they pass.
My Probate Experience
In my line of work, I often witness family members sorting through their loved one’s belongings, accounts, selling their home, etc. They usually come to me too soon, thinking they can just sell the property, and I have to break the news to them about the steps involved with probating an estate. So I know how essential this is… and yet I’ll be honest and admit that I haven’t done my own estate planning. Truth be told, this blog is not only offering helpful insights to you, but a call to action for myself to get it done.
When my dad was diagnosed with incurable cancer, he came to my house and asked me to be the executor of his estate. I didn’t blink; of course I said, “yes.”
Only I wish I had known then what I know now.
I wish I had spent more time with my dad in his last few months. I wish I had realized how painful his death would be for me to process.
It’s been over 3 years and writing this still brings me to blinding tears.
Losing a parent is HARD. There’s no way around it. Whether you were thick as thieves or estranged or somewhere in between, the loss is profoundly difficult.
However, I wouldn’t change being my dad’s executor for anything. It was grueling and the court system makes it way harder than it should be... but I got to know my dad in a way that I never knew him before and as strange and uncomfortable as it was, it helped me to heal. Not only has my grief been made somewhat easier… but I also found acceptance and forgiveness. My dad wasn’t perfect. Most aren’t. I wasn’t a perfect kid either.
I share this personal story to let you know that, while handling your loved one’s estate may seem like the last thing you’d ever want to do, it may help you in unexpected ways. And you're capable of doing this with or without an attorney. If you choose to hire an attorney to represent you, they'll be following these same exact steps and using the same forms that are all available to you online.
Providing Notice: Vital but Time Consuming
Providing notice of every action that I took to my siblings was probably the hardest part. Sometimes I needed their signatures, and since they’re both far away,
I found it best to prepare all the USPS 2-day envelopes needed for the journey from me to my sister in Florida, who signed what I sent her, then she forwarded it on to our brother in Massachusetts, who did his part and then sent it back to me. Addressing and prepaying for all the envelopes made it easier and faster for them to get documents back to me, so I could then file with the court.
My best advice is to keep a detailed spreadsheet from the start with dates, what was submitted, to whom, and check it off when it’s filed with the court.
Preparing the Inventory
Depending on how much stuff there is in the house, one of the most daunting steps will be creating the Inventory. Note that you are not allowed to distribute any personal property until the court issues the "License to Sell Personal Property."
You’ll start by making a detailed list of everything in their possession, including:
cash on hand,
checking and savings accounts,
stocks/bonds,
retirement accounts,
vehicles,
furnishings,
jewelry,
firearms,
household items, etc.
This is called the "Inventory."
How and when everything gets distributed is decided by the court. If there is an official will, that helps tremendously. My dad made a few requests in writing, but it fell short of being a legitimate will. Nevertheless, I honored his wishes precisely.
Tackling Household Tasks
Of course, you can empty the fridge, take out the trash, etc. Anything that would attract pests/animals should be removed from the property.
I also recommend tackling easy stuff like recycling. My dad never got rid of magazines… he had hundreds of them! Mostly they centered around hunting, fishing, golfing, plus catalogs for business supplies. Those went to the transfer station as quickly as I could sort through them.
Other pieces of paper got tossed in bags, which I brought home and carefully reviewed one at a time to determine whether it needed to be shredded (medical documents, credit card statements) or recycled (grocery lists, random notes). My dad loved paper! I found notes dating back to 1997, the year the garage was built.
You are not allowed to sell the house until the court issues the "License to Sell Real Estate." However, you don't have to wait for this license to begin marketing the property for sale.
Each real estate agency may have their own policy., Personally, I am comfortable signing a listing agreement AFTER the estate has been opened, the executor/administrator has been appointed (I'll need a copy of that official document), and you've completed the "Notice to Creditors" process. Then the process is far enough along that I feel fairly certain that we could close within 60 days if we have a signed Purchase & Sale Contract.
All in all, you should be prepared to carry the real estate (including mortgage payments, taxes and insurance) between 6-12 months before you have the court’s permission to sell and distribute the property.
This same timeline applies to storing the personal property, including vehicles, which may also have monthly payments. While the executor/administrator is not responsible for making those payments from their personal funds, it may be necessary to prevent the vehicles and/or real estate from being repossessed/foreclosed upon.
My dad had a Toyota Tacoma truck that was worth 3x what he owed on it, so I kept making his payments in order to hold onto it until I had authority to sell it and get the loan paid off.
Again, explicit notetaking will be your saving grace. Document every dime paid on behalf of the estate, and if there are funds remaining in the estate after all creditors have been paid, you’ll get reimbursed prior to the final distribution to all heirs.
I could go on and on with more examples of what I did right and wrong as the Administrator of my dad’s estate, but my hope was not to bore you to death (pun intended!) but to give you some insights and resources to know that you too can do this if and when needed. Feel free to reach out to me anytime with questions, or to share your own stories.
Serving as an executor is not for the faint of heart… but I wouldn’t trade it for anything. On a positive note, I am extremely grateful that since my dad passed, my mom has completed all of her estate planning. Handling her estate wi’ll be much easier when that very sad time comes… hopefully a long, long time from now!
