Estate-tax work begins with the current law, the decedent's connections to Vermont, a complete asset and deduction inventory, reliable valuations, and the required filing dates. Families should not rely on an old exemption figure or assume that probate value and taxable-estate value are the same.
Build the tax inventory separately from probate
The tax analysis can include property that does not pass through probate, such as trust property, jointly owned assets, life insurance, retirement benefits, business interests, and certain prior transfers. Ownership, control, beneficiary terms, debt, expenses, marital or charitable transfers, and valuation dates all matter, and two estates with the same total value can owe very different amounts once those factors are actually applied to each asset.
Confirm current thresholds and filing rules
Exemptions, forms, elections, due dates, extensions, payment rules, and federal coordination can change. Use the Vermont Department of Taxes materials for the year of death and have counsel or a qualified tax professional assess whether a return, clearance, election, or protective filing is appropriate.
Plan for valuation and liquidity
A taxable estate may hold value without holding cash. Early coordination can reduce forced decisions and missed filings.
- Qualified real-estate and business valuations
- Life-insurance ownership and beneficiary review
- Retirement and income-tax coordination
- Marital and charitable planning
- Cash available for tax and administration
- Records supporting deductions and elections