IS THERE AN ESTATE TAX IN

VERMONT?

DEATH AND TAXES

We have all heard that death and taxes are

the only two certainties.

However, you may assume they do

not go hand-in-hand.

Why would your death be a taxable

event when you have paid taxes all

of your life? Your estate is the

remainder that you have left after

paying these taxes.

FACT OF LIFE

Whether it is fair or not, there are death taxes

that can enter the picture after you pass away.

This is a fact of life, and these taxes

can significantly impact your legacy.

VERMONT STATE ESTATE

TAX

Most states in the union do not impose state-

level estate taxes.

The District of Columbia has its own

estate tax, and 14 states have

state-level death taxes.

We practice law in Vermont, and

there is a Vermont state estate tax.

The entirety of your estate would not be

subject to the Vermont estate tax.

CREDIT OR EXCLUSION

There is a credit or exclusion that

can be used to transfer a certain

amount before the tax would kick in.

At the present time, the exclusion in

Vermont is $2.75 million. The

maximum rate is 16 percent.

NO PORTABILITY

Speaking of spouses, the Vermont estate

tax exclusion is not portable.

This means that a surviving spouse

cannot use the exclusion that was

allotted to his or her deceased

spouse.

The survivor would have just one

exclusion to utilize.

FEDERAL ESTATE TAX

In addition to the Vermont state estate tax,

there is also a federal estate tax that is

applicable in each state.

The exclusion on the federal level is

$5.45 million.

The unlimited marital deduction

applies on the federal level, and the

federal exclusion is portable

between spouses.

PROTECT YOUR LEGACY

If your estate is in taxable territory, you have

options.

The best way to proceed will

depend upon the circumstances,

and there are multiple different

options available to you.

SCHEDULE A FREE ESTATE

PLANNING CONSULTATION

We offer free consultations to people in and

around Burlington, VT.

Feel free to contact us if you would

like to set up an appointment.

Contact or visit us online today

for a free initial consultation

Unsworth Law, PLC

802-879-7133

www.unsworthlaw.net