By: Matthew Getty
New legislation (H.231) has been introduced in the Vermont House of Representatives to increase the Vermont estate tax exclusion to $5.75 million by 2022. The text and status of the bill can be found here: https://legislature.vermont.gov/bill/status/2020/H.231. The Vermont exclusion would remain separate from the federal exclusion, which is currently $11.4 million per individual and is indexed to increase with inflation.
The future of H.231 and the Vermont estate tax more generally is unclear at this time, but this legislation serves as another example of how turbulent state and federal policy has been over the last two decades. In addition, Vermont has changed and added other laws in the last decade or so that impact Vermont estate plans. If you have an estate plan that is more than ten years old, it probably should be reviewed.