Estate and Fiduciary Terms

Resident Estate is the estate of a decedent who was domiciled in Vermont at the time of death.

Vermont Income of a Resident Estate or Trust is the adjusted gross income of a resident estate or trust less income exempted from state taxation under the laws of the United States. 32 V.S.A. § 5823

Vermont Income of a Nonresident Estate or Trust is the sum of the following items as long as they are required to be included in federal adjusted gross income:

  • Rents and royalties from ownership of property located in Vermont
  • Gains from the sale or exchange of Vermont property
  • Wages, salaries, commissions or other income received for services performed in Vermont
  • Income from every business, trade, profession or occupation conducted in Vermont, including money received:
  1. under an agreement not to compete with a business operation in Vermont,
  2. for goodwill associated with the sale of a Vermont business, or
  3. for contractual services associated with the sale of a Vermont business, unless it is shown that the compensation for services does not constitute income from the sale of the business.
  • Vermont income previously deferred under a non-qualified deferred compensation plan and income derived from such previously deferred income.
  • Examples of other income: gambling winnings including lotteries, raffles, or a lump-sum payment from the sale of a right to receive a future lottery annuity.