VT S0003

Amends Vermont trust law (14A V.S.A. § 505) to preserve creditor protections for property held by married couples as tenants by the entirety when transferred into revocable or irrevocable trusts

Property conveyed to spouses' trusts remains immune from separate creditors' claims if: spouses are married, both are current beneficiaries, and the trust holds the entire property (either jointly or in two separate trusts)

Joint trusts may be revoked by either spouse acting alone but require both spouses to amend

Creditor immunity ends upon court-ordered dissolution of the marriage

Applies retroactively to all trusts created before, on, or after the effective date; signed into law April 24, 2025