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Law

VT House Bill 837

Notary Law Update: VT House Bill 837

State: Vermont

Summary:

House Bill 837 codifies a uniform approach to enhanced life estate deeds in Vermont.

Signed:  July 13, 2020

Effective:  July 13, 2020

Chapter: Act No. 145

Affects:

Adds new chapter 6 to Title 27 of the Vermont Statutes.

Changes:
  1. Defines an "enhanced life estate deed" (ELE) as a deed, recorded during the lifetime of the grantor, in which: (a) the grantor expressly reserves a common law life estate; (b) the grantor expressly reserves the right to grant, sell, gift, lease, transfer or encumber real property during the grantor’s lifetime; (c) the grantee acquires a contingent remainder interest such that, prior to the death of the grantor, the grantee has no vested rights in the property; and (d) upon the death of the grantor, title vests in the surviving grantee or the grantee’s heirs, subject to encumbrances of record.
  2. Provides a statutory form that may be used to create an ELE deed, including a place for insertion of a notarial certificate.
Analysis:

Enhanced life estate deeds, also known as “Lady Bird” or ELE deeds, are estate planning instruments similar to transfer on death deeds. The ELE deed is designed to enable a grantor to retain title to real property for the duration of the grantor’s lifetime and transfer the real property to a named beneficiary upon the grantor’s death without the need to go through probate. House Bill 837 codifies a uniform approach to these instruments in Vermont and provides an optional form that may be used to create an enhanced life estate deed.

Read the bill text.

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