Vermont Transfer on Death Deed (TODD): What You Need to Know
Vermont does not have a Transfer on Death Deed (TODD) statute, but it does recognize the Lady Bird deed (also called an "enhanced life estate deed") — a common-law tool that accomplishes very similar estate planning goals.
What a Lady Bird deed does in Vermont
A Lady Bird deed transfers a "life estate" in the property to yourself, with the remainder going automatically to your named beneficiary on your death. While you're alive, you retain full control: you can sell, mortgage, lease, or revoke the deed without the beneficiary's consent. When you die, the remainder interest vests in the beneficiary automatically — no probate, no court approval.
It's functionally similar to a TODD, but the legal mechanism is different. Lady Bird deeds are creatures of state case law rather than statute.
Where they're recognized
Lady Bird deeds are well-established in Florida, Texas, Michigan, Vermont, and West Virginia. They're less reliable in other states — using one outside these jurisdictions is risky.
Advantages over a living trust
- Cheaper to set up. One deed vs. setting up and funding an entire trust.
- Avoids Medicaid estate recovery in many states — the property isn't part of the probate estate.
- Fully revocable any time without the beneficiary's consent.
- Preserves homestead protections in Vermont.
When to use one in Vermont
- You want to leave your home to a specific beneficiary outside of probate.
- You don't have other estate complexity that would justify a full living trust.
- You're concerned about Medicaid estate recovery on your home.
- You want to retain complete control during your lifetime.
When NOT to use one
- You're outside Vermont (or another Lady Bird state). Don't try this in jurisdictions that haven't recognized the doctrine.
- You want the beneficiary to have rights now. Use joint tenancy instead.
- Your estate is complex — multiple properties, business interests, or beneficiaries with special needs. A trust is the right tool.
Recommended next step
Lady Bird deeds require careful drafting to be effective. Use a licensed Vermont estate planning attorney. Most will draft one for $300-$800, which is cheap insurance against an invalid instrument that causes problems after you die.
This article is general information about Lady Bird deeds in Vermont, not legal or estate planning advice. Lady Bird deeds have specific drafting requirements; an invalid Lady Bird deed creates major problems for the beneficiary after your death. Consult a licensed Vermont estate planning attorney.