Updated October 1, 2026. Quick answer: Our statute-checked table of all 51 jurisdictions lists Vermont as a state without a transfer on death deed statute. What Vermont’s statute, 27 V.S.A. chapter 6, creates instead is the enhanced life estate deed, a statutory counterpart of the Lady Bird deed: the owner keeps a life estate and the right to convey the property, the grantee has no vested rights while the owner lives, and the property passes to the grantee at death subject to encumbrances of record. The chapter took effect July 13, 2020, and the deed is subject to Vermont’s property transfer tax.
Deeding a home to a family member while you are alive? What Vermont requires, from its own documents: Vermont quitclaim deed requirements.
The securities and vehicle version of the same decision is covered here: transfer-on-death registration in Vermont.
What Vermont’s statute creates
Chapter 6 of Title 27 is titled “Enhanced Life Estate Deeds” and section 651 gives it a short title: the “Enhanced Life Estate Deed Act” or the “ELED Act”. The legislature’s own page for the Vermont Statutes Online calls itself “an unofficial copy of the Vermont Statutes Annotated”, so check the official code before relying on a quoted line. Section 653 defines the deed as one in which the grantor expressly reserves a common law life estate, expressly reserves the right to convey the property during life, the grantee acquires a contingent remainder with no vested rights before the grantor’s death, and on death title vests in the surviving grantee “subject to encumbrances of record”.
It took effect with the law that added it: the history note of each section gives “eff. July 13, 2020” for the original enactment, and sections 654 and 657 also record later amendments (“eff. January 1, 2022” and “eff. June 6, 2024”). Deeds recorded earlier are protected by section 659, which says nothing in the chapter affects the validity of an enhanced life estate deed, a “Lady Bird Deed”, a “Medicaid Deed”, an “Italian Deed” or a similar deed executed and recorded before July 13, 2020.
Section by section
| Section (27 V.S.A.) | Subject | What it provides |
|---|---|---|
| 651 | Short title | Enhanced Life Estate Deed Act (the ELED Act) |
| 652 | Application | Deeds in which the grantor reserves a common law life estate and expressly reserves rights that give the grantee a contingent remainder |
| 654 | Execution and recording | A recorded deed does not transfer a present interest to the grantee or affect the grantor’s creditors; the grantor can convey without the grantee’s joinder, consent or notice; the deed is subject to the property transfer tax, 32 V.S.A. chapter 231 |
| 655 | No acceptance or consideration | Effective without either; the grantee cannot convey the contingent remainder during the grantor’s life, and an attempt is void |
| 656 | Revocation, revision, mortgages | The grantor can revoke or revise without the grantee; a mortgage does not revoke the deed but the interests are encumbered by it |
| 657 | Guardian and power of attorney | A guardian needs Probate Division approval; an agent can sign if the power of attorney meets 14 V.S.A. chapter 127 (deeds executed on or after July 1, 2023) |
| 658 | Grantee dies first | Unless the deed says otherwise, title goes to the grantee’s heirs or beneficiaries as the Probate Division directs, or to the surviving joint tenant |
| 659 | Earlier deeds | Lady Bird, Medicaid and similar deeds recorded before July 13, 2020 are not affected |
| 660 | Optional form | A statutory form deed may be used |
Revoking, revising and the grantee’s position
The statute makes revocation a recording event: section 653 says “accomplished when the grantor records a deed from the grantor to himself or herself”. Revising means changing the grantee, which “is accomplished when the grantor records a new ELE deed to a grantee other than, or in addition to, the grantee named in the prior ELE deed”. Neither needs the grantee: section 656 says “Joinder by, consent to, agreement of, or notice to the grantee of an ELE deed shall not be required for revocation or revision”. While the owner lives, section 654 says a recorded deed does not “transfer or convey any present right, title, or interest in the property or create any present legal or equitable interest in the grantee”.
What a Vermont deed does not cover
A deed passes one piece of real property. What a Vermont estate does still need is a will for everything the deed does not reach. LawDepot builds a state-specific last will and testament.
LawDepot pays us a commission if you buy through this link. It costs you nothing extra. We are not a law firm and this is not legal advice. Affiliate Disclosure.
The property transfer tax
Section 654 says an executed and recorded deed “shall be subject to the property transfer tax under 32 V.S.A. chapter 231”. The Vermont Department of Taxes describes that tax as a tax “on the transfer of title to real property in Vermont” and publishes these rates for transfers generally:
| Type of property | Rate |
|---|---|
| Principal residence, first $200,000 of value | 0.5% |
| Principal residence, value above $200,000 | 1.25% general rate plus 0.22% clean water surcharge, total 1.47% |
| Non-principal residence fit for year-round habitation, not a long-term rental | 3.40% (3.62% with the surcharge) |
The chapter does not say what value means for a deed made without consideration, which section 655 allows. The Department’s page says of an enhanced life estate deed that “The remainder interest calculation may be used to determine the current valuation of the property.” Confirm the details with the Department or a Vermont lawyer before recording.
The statutory form, and what is not in the statute
Section 660 sets out an optional “Vermont statutory form deed”, with blanks for the grantors, grantees, nature of tenancy and property description, and a reserved-rights clause that ties the deed to the chapter. The form is optional: the statute says it “may be used to create an enhanced life estate deed”. The chapter does not address Medicaid eligibility; how Vermont’s long-term-care program counts a home held this way is a separate question for an elder-law lawyer. The all-states comparison, which lists Vermont as a state without a transfer on death deed statute, is on the transfer on death deed states table, and the general difference between the two instruments is on Lady Bird deed versus TOD deed. What a house costs to pass through probate in Vermont, if no deed is used, is on the Vermont probate cost page.
Common mistakes
- Searching for a Vermont transfer on death deed form. The Vermont instrument is the enhanced life estate deed.
- Assuming the grantee can sell or borrow against the remainder. Section 655 says an attempt is void.
- Forgetting that the deed is subject to the property transfer tax. Section 654 says so, and the rates start at 0.5% and reach 3.40% (3.62% with the clean water surcharge).
- Revoking a deed by telling the grantee. Revocation is a recording: a deed from the grantor to themselves.
- Assuming an older Lady Bird deed needs to be redone. Section 659 says the chapter does not affect deeds recorded before July 13, 2020.
Related on this site: which states have a transfer on death deed, Lady Bird deed versus TOD deed and Vermont probate cost.
Sources
- Vermont Statutes Online, Title 27, chapter 6, Enhanced Life Estate Deeds (an unofficial copy of the Vermont Statutes Annotated): https://legislature.vermont.gov/statutes/fullchapter/27/006
- Vermont Statutes Online, Title 27, chapter 6, section list: https://legislature.vermont.gov/statutes/chapter/27/006
- Vermont Department of Taxes, Property Transfer Tax: https://tax.vermont.gov/property/property-transfer-tax
Sources: the primary documents linked above, read on October 1, 2026. General information, not legal or tax advice. Your own facts decide the outcome, and a Florida, Texas or Vermont real-property lawyer, or a tax preparer, is the right place to confirm anything consequential.