Estate Planning for Vermont’s Second Homeowners
December 18, 2024
Vermont is a beloved destination for second homeowners. Whether your Vermont property is a summer lake house, a winter ski chalet, or a peaceful rural retreat, it’s more than just real estate—it’s a place where memories are made and family traditions grow.
But second homes also come with unique estate planning considerations. If you own or are thinking about purchasing a second home in Vermont, a well-crafted estate plan can help you preserve this special place for future generations while avoiding unnecessary legal complications.
Why Second Homes Require Special Estate Planning Attention
Unlike your primary residence, a second home is often shared among family members, passed down over time, or even used as a rental property. That means your estate plan needs to address not just ownership and transfer, but also questions of usage, maintenance, taxes, and future conflicts.
Some key considerations include:
- Who will inherit the home?
Leaving a second home to multiple heirs can sometimes lead to disagreements, especially if expectations aren’t clear or if one heir wants to sell while others want to keep the property. - How will expenses be handled?
Property taxes, utilities, insurance, and upkeep can add up. Without a clear plan, heirs may be left wondering who’s responsible—and disputes can arise. - What if the home is out-of-state for the heirs?
Travel distance, local regulations, and logistics may affect your heirs’ ability to manage or enjoy the property.
By addressing these questions in your estate plan, you can protect your investment and reduce the risk of family conflict.
Planning Tools for Vermont Second Homeowners
Fortunately, there are several estate planning tools available to help you structure the future of your Vermont property. The right choice depends on your family dynamics, financial goals, and long-term vision for the home.
- Revocable Living Trusts: Placing your second home in a revocable living trust can help avoid probate in Vermont, especially if you live in another state. This keeps the transfer of your property private, expedient, and less costly. You can also use the trust to outline how the property should be used or managed.
- Limited Liability Companies (LLCs): Some families choose to transfer ownership of a second home to an LLC. This can provide liability protection, allow for shared ownership among heirs, and include operating agreements that spell out decision-making rules, usage schedules, and buyout provisions.
- Life Estate Deeds: This option allows you to retain the right to live in or use the home during your lifetime, while automatically transferring ownership to your chosen beneficiaries upon your death. However, it can limit your ability to sell or refinance, so it’s best used in specific situations.
- Co-Ownership Agreements: If you’re planning to leave the home to more than one heir, consider creating a co-ownership agreement as part of your estate plan. This agreement can address maintenance duties, expense sharing, scheduling usage, and what happens if someone wants to sell their share.
- Vacation Home Trusts: These specialized trusts are designed for families who want to keep a vacation home in the family for generations. They can include rules about use, maintenance funding, and succession planning.
Don’t Forget the Tax Implications
Vermont does not currently impose an estate tax for estates under $5 million (as of 2025), but federal estate tax and capital gains issues may still apply. If you purchased your second home decades ago, your beneficiaries could face significant taxes upon sale unless the property is transferred in a tax-efficient manner.
Proper planning—such as using a trust or updating the property's cost basis through inheritance—can help mitigate these consequences.
Keep Your Plan Updated
As life circumstances change, so should your estate plan. Marriage, divorce, the birth of grandchildren, changes in tax law, or a decision to rent out the home seasonally can all affect how your second home should be treated in your estate plan. Regular reviews with an estate planning attorney ensure your plan remains current and reflective of your goals.
Plan for Peace of Mind—Contact Deppman Law PLC
If you own a second home in Vermont—or plan to—now is the time to start thinking about how to protect it for the future. At Deppman Law PLC, we understand the unique considerations facing second homeowners and offer customized estate planning services tailored to Vermont property owners. Contact us today and let us help you create a plan that keeps your family retreat exactly that—a place for family, not for disputes.
For many couples, the family home is more than just their biggest financial asset—it’s also where memories were made, children were raised, and routines were built. So when a marriage ends, one of the most emotionally and financially significant questions becomes: What happens to the house? In Vermont, there’s no one-size-fits-all answer. The outcome depends on a range of factors, including how the property was acquired, whose name is on the deed, and what’s considered “equitable” under state law. Vermont Is an Equitable Distribution State Unlike community property states, where marital assets are divided 50/50, Vermont follows equitable distribution rules. That means the court aims for a division of property that is fair, but not necessarily equal. When it comes to the house, the court will look at the full picture to determine who should receive it—or whether it should be sold. Is the Home Marital Property? The first step in deciding what happens to the house is to determine whether it’s considered marital property or separate property. Marital property generally includes any property acquired by either spouse during the marriage, regardless of whose name is on the deed. Separate property is usually property owned by one spouse before the marriage, inherited individually, or received as a gift—though even separate property can become marital under certain conditions. For example, if one spouse bought the home before the marriage but both spouses contributed to the mortgage or improvements, the house (or at least part of its value) may be treated as marital property. What Factors Does the Court Consider? When deciding what to do with the house, Vermont courts look at a number of factors to determine what’s fair. These include: The length of the marriage Each spouse’s contributions (financial and non-financial) The needs of any children Each spouse’s earning potential and financial circumstances Whether one spouse wants to keep the home and can afford to do so Whether one spouse has primary custody of the children and would benefit from staying in the home Common Outcomes for the House in Divorce Depending on the circumstances, there are several ways the home can be handled: 1. One Spouse Buys Out the Other If one spouse wants to keep the home, they may buy out the other spouse’s share. This typically involves refinancing the mortgage in their own name and paying the other spouse their portion of the home’s equity. 2. The Home Is Sold and the Proceeds Are Split This is often the simplest option, particularly if neither spouse can afford to keep the house on their own or if neither wants it. The couple sells the house and divides the equity according to the divorce agreement or court order. 3. One Spouse Stays Temporarily In some cases, especially where children are involved, one spouse may stay in the home for a set period of time (e.g., until the youngest child turns 18), after which the home is sold and the proceeds divided. 4. Both Spouses Continue to Co-Own Rare, but possible—especially if the real estate market is poor or the home has sentimental value. This requires careful planning, clear agreements about expenses and responsibilities, and an exit plan. Don’t Forget the Tax and Mortgage Implications Whatever the outcome, it’s important to consider: Mortgage liability— If both spouses are on the mortgage, both are responsible—even if one moves out. Capital gains taxes— Selling a home may trigger taxes on the profit, though married couples can often exclude up to $500,000 in gains if certain conditions are met. Refinancing challenges— The spouse keeping the home must qualify on their own for refinancing. These financial and tax issues are why it’s important to work with both a divorce attorney and a financial advisor during this process. Need Help Managing Property Division? Contact Deppman Law PLC Dividing property—especially the family home—can be one of the most difficult aspects of divorce. At Deppman Law PLC , we’re here to help you understand your rights, evaluate your options, and reach a fair and sustainable resolution. Contact us today for a confidential consultation about your case.
In Vermont, tenants enjoy strong legal protections, and landlords must follow specific procedures when seeking to remove a tenant from a rental property. One of the most important requirements is having “just cause” for the eviction—especially when dealing with month-to-month or subsidized tenancies. At Deppman Law PLC , we regularly advise both landlords and tenants on their rights and responsibilities under Vermont’s landlord-tenant laws. Today, we’ll walk through what “just cause” means, what qualifies, and how the rules apply depending on the type of tenancy. What Does “Just Cause” Mean? “Just cause” means that a landlord must have a legally valid reason to evict a tenant. In many Vermont municipalities—including Burlington and other communities with local rental ordinances—just cause eviction laws are in place to prevent landlords from evicting tenants arbitrarily or without reason. Even where no local ordinance exists, state law still provides baseline protections. For subsidized housing (such as Section 8 or other public housing programs), federal and state rules require landlords to have just cause before terminating a lease—even at the end of the lease term. Common “Just Cause” Grounds for Eviction in Vermont While the specific language of just cause ordinances can vary slightly from one locality to another, the following are widely recognized as legal grounds for eviction in Vermont: 1. Nonpayment of Rent This is one of the most common reasons for eviction. If a tenant fails to pay rent on time, a landlord may serve a notice to pay or quit. If payment isn’t made, the landlord can file for eviction—but only after giving proper notice, typically 14 days under Vermont law. 2. Violation of Lease Terms If a tenant breaches a condition of the lease—such as subletting without permission, having unauthorized pets, or damaging the property—the landlord may pursue eviction. However, landlords must give the tenant written notice of the violation and may be required to give them time to correct the issue. 3. Illegal Activity Engaging in illegal activity on the premises, such as drug use or distribution, may be grounds for immediate eviction. The landlord must still provide appropriate notice and evidence of the conduct in court. 4. Material Health and Safety Violations If the tenant is creating conditions that endanger health or safety—for example, hoarding, failing to dispose of garbage, or disabling smoke detectors—these actions may support a just cause eviction. 5. Owner Move-In or Substantial Renovation Some Vermont cities allow eviction if the landlord or a family member intends to move into the unit or if the property requires major renovations that necessitate vacancy. This must be handled carefully and often requires advance notice (typically 90 days) and documentation. 6. Refusal to Sign a New Lease (If Reasonable) If a tenant refuses to sign a lease renewal with reasonable and legal changes, this may be considered just cause for non-renewal or eviction. What Is Not Just Cause? Landlords cannot evict tenants for discriminatory reasons, retaliate against tenants for asserting their legal rights (like complaining to the health department), or remove tenants without cause if local ordinances require it. For example: A tenant cannot be evicted simply because the landlord wants a different tenant. You cannot evict a tenant for reporting code violations or requesting repairs. You cannot remove a tenant based on race, gender, family status, religion, or other protected categories under state and federal fair housing laws. Just Cause Requirements Vary by Municipality Some Vermont towns and cities—most notably Burlington —have their own “just cause eviction” ordinances that provide additional tenant protections. For example, Burlington’s ordinance passed in 2022 requires landlords to have just cause for any termination of a residential lease, including month-to-month leases. Landlords operating in these municipalities must be careful to comply not only with state law but also with local ordinances, which may require longer notice periods or restrict certain grounds for eviction altogether. The Importance of Proper Procedure Even with just cause, landlords must follow specific legal procedures for eviction. This includes: Serving the correct type of notice (14, 30, or 60 days depending on the cause and lease type) Filing a court complaint if the tenant doesn’t vacate Obtaining a court order for eviction— self-help evictions are illegal in Vermont Failure to follow these steps can delay the process and may expose the landlord to legal liability. Contact Deppman Law PLC Today Whether you're a landlord trying to understand your rights or a tenant facing eviction, Vermont’s landlord-tenant laws can be complex—and the consequences of missteps can be serious. At Deppman Law PLC , we help clients across Vermont resolve rental disputes, comply with local ordinances, and protect their legal interests. Contact us today to schedule a consultation and get experienced guidance tailored to your situation.