Estate Tax

Probate Estate and Tax Clearance
 

When the deceased person owns assets in his or her individual name, an estate must be opened in a Vermont probate court.

The probate court requires a tax clearance from the Vermont Department of Taxes to close the estate. Complete Vermont Form E2A, Vermont Estate Tax Information and Application for Tax Clearance and Instructions, for this purpose.

The Department will not issue a tax clearance until all required Vermont tax returns are filed, which may include one or more of the following:

  • Income Tax Return for current and (if applicable) prior year
  • Fiduciary Tax Return (except final return)
  • Estate Tax Return
     

What Is Estate Tax?

Vermont collects a tax on the transfer of a Vermont estate of resident and nonresident deceased persons. Generally, Vermont Form EST-191, Estate Tax Return, must be filed if the deceased person has an interest in property located in Vermont and either (1) their federal gross estate plus federal adjusted taxable gifts made within two years of their death is worth more than $2.75 million, or (2) they are required to file federal Form 706, U.S. Estate (and Generation-Skipping Transfer) Tax Return. For Vermont resident decedents, property located in Vermont means all property interests, excluding real or tangible property located outside of Vermont at the time of death. For nonresident decedents, intangible property is also excluded.

Year of Death Gross Estate Value Exceeds
2000 & 2001 $675,000
2002 & 2003  $1,000,000
2004 & 2005 $1,500,000
2006-2010 $2,000,000
2011-2015 $2,750,000
Year of Death Value of GROSS ESTATE Plus Adjusted taxable Gifts Made within Two Years of Death EXCEEDS
2016- $2,750,000

For questions on estate and fiduciary filing, please contact us at (802) 828-6820. or by Fax:  (802) 828-2720 or Email.

Contact Us

Commissioner Kaj Samsom
133 State Street | Montpelier, VT 05633
(802) 828-2505

Taxpayer Assistance Window
Office Hours: 7:45 a.m. - 4:30 p.m. Monday - Friday

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