VT House Bill 837

Legislation

State: Vermont
Signed: July 13, 2020

Effective: July 13, 2020
Chapter: Act No. 145

Summary

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

Affects

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

Changes

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.
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 House Bill 837.