32 V.S.A. § 7441 Name of tax
7441. Name of tax
The tax imposed by this subchapter shall be known as the Vermont estate tax.
Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.
Estate Tax
V.S.A. tit. 32, ch. 190, subch. 3
in effect32 V.S.A. § 7442 Repealed. 1979, No. 140 (Adj. Sess.), § 3, eff. date, see note below.
32 V.S.A. § 7442a Imposition of a Vermont estate tax and rate of tax
7442a. Imposition of a Vermont estate tax and rate of tax
(a) A tax is hereby imposed on the transfer of the estates of decedents as prescribed by this chapter.
(b) The tax shall be computed as follows. The following rates shall be applied to the Vermont taxable estate:
Amount of Vermont Taxable Estate | Rate of Tax
Under $5,000,000.00 | None
$5,000,000.00 or more | 16 percent of the excess over $5,000,000.00
The resulting amount shall be multiplied by a fraction not greater than one, where the numerator of which is the value of the Vermont gross estate plus the value of gifts under subdivision 7402(14)(C) of this title with a Vermont situs, and the denominator of which is the federal gross estate plus the value of gifts under subdivision 7402(14)(C) of this title.
(c) All values shall be as finally determined for federal estate tax purposes.
(d) [Repealed.]
Added 1979, No. 140 (Adj. Sess.), § 1; amended 1995, No. 29, § 11, eff. April 14, 1995; 2001, No. 140 (Adj. Sess.), § 12, eff. June 21, 2002; 2009, No. 1 (Sp. Sess.), § H.31; 2009, No. 160 (Adj. Sess.), § 33a; 2015, No. 146 (Adj. Sess.), § 2, eff. Jan. 1, 2016; 2017, No. 73, § 8, eff. Jan. 1, 2016; 2017, No. 113 (Adj. Sess.), § 189; 2019, No. 71, § 5, eff. Jan. 1, 2020; 2019, No. 71, § 6, eff. Jan. 1, 2021.
32 V.S.A. § 7443 Estate tax reduction for estate of a farmer
7443. Estate tax reduction for estate of a farmer
The amount of tax determined under section 7442a of this chapter on an estate that qualifies for installment payment of estate taxes under 26 U.S.C. § 6166, and in which the closely held business is the business of farming in Vermont, shall be reduced by the percentage that the value of the closely held farm business, as determined for federal estate tax purposes, bears to the value of the federal adjusted gross estate.
Added 2001, No. 140 (Adj. Sess.), § 21, eff. June 21, 2002; amended 2003, No. 70 (Adj. Sess.), § 51, eff. March 1, 2004.
32 V.S.A. § 7444 Return by executor
7444. Return by executor
(a) An executor shall submit a Vermont estate tax return to the Commissioner, on a form prescribed by the Commissioner, when a decedent has an interest in property with a situs in Vermont and one or both of the following apply:
(1) a federal estate tax return is required to be filed under 26 U.S.C. § 6018; or
(2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined in 26 U.S.C. § 2001(b), made within two years of the date of the decedent’s death exceeds $5,000,000.00.
(b) If the executor is unable to make a complete return as to any part of the gross estate of the decedent, the executor shall include in the executor’s return, to the extent of the executor’s knowledge or information, a description of such part and the name of every person holding a legal or beneficial interest therein. Upon notice from the Commissioner, such person shall in like manner make a return as to such part of the gross estate. A return made by one of two or more joint fiduciaries shall be sufficient compliance with the requirements of this section. A return made pursuant to this section shall contain a statement that the return is, to the best of the knowledge and belief of the fiduciary, true and correct.
Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2003, No. 70 (Adj. Sess.), § 52, eff. March 1, 2004; 2009, No. 1 (Sp. Sess.), § H.32; 2015, No. 146 (Adj. Sess.), § 3, eff. Jan. 1, 2016; 2021, No. 105 (Adj. Sess.), § 558, eff. July 1, 2022; 2025, No. 164 (Adj. Sess.), § 16, eff. June 18, 2026.
32 V.S.A. § 7445 Copies of federal estate tax returns to be filed
7445. Copies of federal estate tax returns to be filed
It shall be the duty of the executor of every person who may die a resident of Vermont or a nonresident with real estate or tangible personal property having an actual situs in Vermont to file with the Commissioner a duplicate of all federal estate tax returns that he or she is required to make to the federal authorities or, if no federal estate tax return is required, a pro forma federal estate tax return for the estate of a decedent with a Vermont estate tax liability shall be filed with the Commissioner.
Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2009, No. 1 (Sp. Sess.), § H.33.
32 V.S.A. § 7446 When returns to be filed
7446. When returns to be filed
The estate tax return required under section 7444 of this title shall be filed within nine months of the death of the decedent. Prior to expiration of the filing period, executors may apply for a six-month extension.
Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2009, No. 1 (Sp. Sess.), § H.34.
32 V.S.A. § 7447 When tax payable
7447. When tax payable
The tax imposed by this subchapter shall be due and payable by the executor at the time the Vermont estate tax return is required to be filed under section 7446 of this title, without extension.
Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 1995, No. 29, § 12, eff. April 14, 1995; 2003, No. 70 (Adj. Sess.), § 53, eff. March 1, 2004.
32 V.S.A. § 7448 Extension of time for payment
7448. Extension of time for payment
(a) If the Commissioner finds that the payment on the due date of any part of the amount determined by the executor as the tax imposed by this subchapter would result in undue hardship to the estate, he or she may extend the time for payment for a reasonable period not in excess of five years from the date prescribed by section 7447 of this title.
(b) For good cause shown, the Commissioner may extend the time for the payment of any tax liability, but the taxpayer shall pay, at the time the tax liability is paid, without assessment or demand, interest computed at the rate per annum established from time to time by the Commissioner pursuant to section 3108 of this title on the unpaid amount of that tax liability from the time when the liability was originally due to the time of payment. However, no interest shall be required in the case of an extension granted in case of hardship under subsection (a) of this section.
Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 1979, No. 105 (Adj. Sess.), § 16; 1981, No. 191 (Adj. Sess.), § 7.
32 V.S.A. § 7449 Probate Division to send Commissioner notice of estate
7449. Probate Division to send Commissioner notice of estate
The Probate Division shall send to the Commissioner by mail at the time of granting letters of administration in any estate and upon forms to be furnished by the Commissioner the name of the decedent, the date of his or her death, and the name and address of the administrator or executor.
Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2017, No. 28, § 7, eff. May 10, 2017.
32 V.S.A. § 7450 Powers and duties of executor or administrator appointed for nonresident
7450. Powers and duties of executor or administrator appointed for nonresident
When real or personal estate within Vermont or any interest therein belonging to a person who is not a resident of Vermont shall pass by will or otherwise so that it may be subject to tax under the provisions of this subchapter and an executor or administrator of the estate of the decedent is appointed by a Probate Division of the Superior Court of Vermont upon ancillary proceedings or otherwise, such executor or administrator shall, for the purpose of this subchapter, have the same powers and be subject to the same duties and liabilities with reference to such estate as though the decedent had been a resident of Vermont.
Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011.
32 V.S.A. § 7451 Appointment of resident administrator for nonresident’s estate
7451. Appointment of resident administrator for nonresident’s estate
In the absence of administration in Vermont upon the estate of a nonresident, the Commissioner may, at the request of an executor or administrator duly appointed and qualified in the state of the decedent’s domicile or at the request of a donee, devisee, legatee, distributee, or grantee under a conveyance or transfer made during the grantor’s lifetime, and upon satisfactory evidence furnished him or her by such executor, administrator, donee, devisee, legatee, distributee or grantee, or otherwise, determine whether or not any part of the estate of such decedent within Vermont is subject to tax under the provisions of this subchapter and may apply to the proper Probate Division of the Superior Court for the appointment of an administrator in Vermont.
Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011.
32 V.S.A. § 7452 Personal liability of recipient of property; effect of transfer of property to bona fide purchaser, etc
7452. Personal liability of recipient of property; effect of transfer of property to bona fide purchaser, etc
If the estate taxes imposed by this subchapter are not paid when due, then the spouse, transferee, trustee, surviving tenant, person in possession of the property by reason of the exercise, nonexercise, or release of a power of appointment, or beneficiary, who receives, or has on the date of the decedent’s death property included in the federal gross estate to the extent of the value, at the time of the decedent’s death, of such property, shall be personally liable for such tax. Any part of such property transferred by, or transferred by a transferee of, such spouse, transferee, trustee, surviving tenant, person in possession of property by reason of the exercise, nonexercise, or release of a power of appointment, or beneficiary, to a bona fide purchaser, mortgagee, or pledgee for an adequate and full consideration in money or money’s worth shall be divested of the lien provided by law and a like lien shall then attach to all the property of such spouse, transferee, trustee, surviving tenant, person in possession, beneficiary, or transferee of any such person, except any part transferred to a bona fide purchaser, mortgagee, or pledgee for an adequate and full consideration in money or money’s worth.
Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.
32 V.S.A. § 7453 Reimbursement of person other than executor paying tax
7453. Reimbursement of person other than executor paying tax
(a) If the tax or any part thereof imposed by this subchapter is paid by, or collected out of, that part of the estate passing to, or in possession of, any person other than the executor in his or her capacity as such, such person shall be entitled to reimbursement out of any part of the estate still undistributed or by a just and equitable contribution by the persons whose interest in the estate of the decedent would have been reduced if the tax had been paid before the distribution of the estate or whose interest is subject to equal or prior liability for the payment of taxes, debts, or other charges against the estate, it being the purpose and intent of this subchapter that, so far as is practicable and unless otherwise directed by the will of the decedent, the tax shall be paid out of the estate before its distribution.
(b) Any person entitled to reimbursement or contribution under this section may enforce his or her right thereto by action brought in the courts of this State.
Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.
32 V.S.A. § 7454 Discharge of executor; income tax clearance; notice of proceedings in court
7454. Discharge of executor; income tax clearance; notice of proceedings in court
(a) Upon the final settlement of the account of an administrator, executor, or trustee, the Probate Division of the Superior Court shall make the amount of estate taxes imposed by this chapter a part of the final decree of distribution, a copy of which decree shall be sent forthwith to the Commissioner by the judge of probate. An administrator, executor, or trustee shall not be finally discharged or relieved from his or her bond until he or she has paid such taxes as he or she is required to pay to the Commissioner and has filed with the Probate Division of the Superior Court a receipt issued by the Commissioner for the receipt of such taxes.
(b) A final account of an administrator, executor, or trustee shall not be allowed unless such account shows and the judge of probate finds that all income taxes imposed by chapter 151 of this title, which have become payable, have been paid. The certificate of the Commissioner and the receipt for the amount of tax therein certified shall be conclusive as to the payment of the tax, to the extent of such certificate. On behalf of the State, for the purpose of facilitating the settlement and distribution of estates, the Commissioner may agree upon the amount of income taxes at any time due from such administrator, executor, or trustee under the provisions of chapter 151 of this title, and payment in accordance with such agreement shall be full satisfaction of the taxes to which the agreement relates.
Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011.
32 V.S.A. §§ 7455-7459 [Reserved for future use]
32 V.S.A. § 7460 Generation-skipping transfers
7460. Generation-skipping transfers
(a) As used in this section, unless the context indicates otherwise:
(1) “Generation-skipping transfer” means every transfer subject to the federal generation-skipping transfer tax in which the original transferor is a resident of the State at the date of original transfer or the property transferred is real or personal property in the State.
(2) “Original transferor” means any grantor, donor, settlor, or testator who by grant, gift, trust, or will makes a transfer of real or personal property that results in federal generation-skipping transfer tax.
(b) A tax is hereby imposed upon every generation-skipping transfer in which the original transferor is a resident of the State at the date of original transfer, in an amount equal to the amount allowable as a credit for State death taxes under 26 U.S.C. § 2604, as in effect on January 1, 2001.
(c) A tax is hereby imposed upon every generation-skipping transfer in which the original transferor is not a resident of the State at the date of the original transfer, in an amount equal to the amount allowable as a credit, with regard to the real or tangible personal property in Vermont, for State death taxes under 26 U.S.C. § 2604, as in effect on January 1, 2001.
(d) Every person required to file a return reporting a generation-skipping transfer under applicable federal law and regulations shall file with the Commissioner, on or before the last day prescribed for filing the federal return, a return in such form as the Commissioner may prescribe, including a duplicate copy of the federal return.
(e) The person liable for payment of the federal generation-skipping transfer tax shall be liable for the tax imposed by this section, which tax is due upon a taxable distribution or taxable termination as determined under the applicable provisions of the federal generation-skipping transfer tax and shall be paid to the Commissioner.
(f) Any person failing to file any payment of tax required by this section when due shall be subject to the interest and penalty provision of section 3202 of this title.
(g) If, after a duplicate copy of the federal return of a generation-skipping transfer has been filed with the Commissioner, the amount of the federal generation-skipping transfer tax is increased or decreased by the federal government, an amended return shall be filed with the Commissioner showing all changes made in the original return and the amount of increase or decrease in the federal generation-skipping transfer tax and in the State death tax credit relating thereto.
Added 1999, No. 49, § 57, eff. June 2, 1999; amended 2001, No. 140 (Adj. Sess.), § 16, eff. June 21, 2002; 2021, No. 105 (Adj. Sess.), § 559, eff. July 1, 2022.
Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/32/190Fetched: 10/21/2026