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VermontS.32025-2026 SessionSenateWALLET

An act relating to the transfer of property to a trust

Sponsored By: Nader A Hashim (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Creditors can reach some trusts

Beginning April 24, 2025, assets in a revocable trust are open to the settlor’s creditors while the settlor is alive. For an irrevocable trust, a creditor may reach the most the trust can pay to or for the settlor. If more than one settlor funded the trust, a creditor can only reach the share tied to that settlor’s contribution. Irrevocable special needs trusts described in 42 U.S.C. § 1396p(d)(4) are excluded. After the settlor dies, if the trust was revocable at death, trust assets can pay the settlor’s debts, estate costs, funeral costs, and statutory spouse and child allowances when the probate estate is too small. The settlor may direct which source pays these items.

Married couples keep home protection in trusts

Beginning April 24, 2025, a home owned by spouses as tenants by the entirety keeps the same protection from each spouse’s separate creditors after it is moved into one or more qualifying revocable or irrevocable trusts. Both spouses must be married to each other, the trust or trusts must hold the entire property, and both spouses must be current beneficiaries (either of one joint trust or of two separate trusts). If it is a joint trust, either spouse can revoke it, but both must agree to amend it. Property in these trusts is treated the same as tenants-by-the-entirety property for bankruptcy. Protection ends if a court dissolves the marriage or if the transferring spouse(s) waive it in writing. These rules apply to trusts and deeds made before, on, or after April 24, 2025, and to court cases filed on or after that date.

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Sponsors & Cosponsors

Sponsor

  • Nader A Hashim

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 143 • No: 1

House vote • 4/10/2025

Which was agreed to on a Roll Call Passed -- Needed 72 of 144 to Pass -- Yeas = 143, Nays = 1

Yes: 143 • No: 1 • Other: 1

Actions Timeline

  1. Senate Message: Signed by Governor April 24, 2025

    4/24/2025House

  2. Signed by Governor on April 24, 2025

    4/24/2025Senate

  3. Delivered to Governor on April 18, 2025

    4/18/2025Senate

  4. As passed by Senate and House

    4/15/2025Senate

  5. House message: House passed bill in concurrence

    4/15/2025Senate

  6. Read third time and passed in concurrence

    4/11/2025House

  7. Action Calendar: Third Reading

    4/11/2025House

  8. Which was agreed to on a Roll Call Passed -- Needed 72 of 144 to Pass -- Yeas = 143, Nays = 1

    4/10/2025House

  9. Third Reading ordered

    4/10/2025House

  10. Rep. LaLonde of South Burlington demanded yeas and nays

    4/10/2025House

  11. Rep. Canfield of Fair Haven recommended for the Committee on Ways and Means

    4/10/2025House

  12. Rep. Goodnow of Brattleboro reported for the Committee on Judiciary

    4/10/2025House

  13. Read second time

    4/10/2025House

  14. Action Calendar: Favorable

    4/10/2025House

  15. Notice Calendar: Favorable

    4/9/2025House

  16. Referred to Committee on Ways and Means per Rule 35(a)

    4/2/2025House

  17. Notice Calendar: Favorable

    4/2/2025House

  18. Read first time and referred to the Committee on Judiciary

    3/11/2025House

  19. Read 3rd time & passed

    2/27/2025Senate

  20. New Business/Third Reading

    2/27/2025Senate

  21. 3rd reading ordered

    2/26/2025Senate

  22. Recommendation of amendment by Committee on Judiciary agreed to

    2/26/2025Senate

  23. Read 2nd time, reported favorably with recommendation of amendment by Senator Hashim for Committee on Judiciary

    2/26/2025Senate

  24. Favorable report with recommendation of amendment by Committee on Judiciary

    2/26/2025Senate

  25. Unfinished Business/Second Reading

    2/26/2025Senate

Bill Text

  • As Enacted (ACT 7)

    4/30/2025

    PDF

  • As Passed by Both Chambers

    4/17/2025

    PDF

  • As Passed by Both Chambers (Unofficial)

    4/17/2025

    PDF

  • As Passed by the Senate

    2/28/2025

    PDF

  • As Passed by the Senate (Unofficial)

    2/28/2025

    PDF

  • As Introduced

    1/8/2025

    PDF

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