Living Trust Attorney in Virginia — Probate Tax, TOD Deeds and Avoiding Probate

Virginia charges a probate tax on estates that go through probate. A living trust can avoid it. This guide from a living trust attorney in Virginia perspective explains the probate tax, how Virginia probate works and when a trust is worth it.

Virginia has no estate or inheritance tax. However, the probate tax and probate process are reasons many Virginians choose a trust. Moreover, Virginia allows transfer-on-death deeds. Therefore, there are several options to compare.

How Virginia probate works

In Virginia, probate begins with the clerk of the circuit court in the locality where the person lived. The executor qualifies, then files an inventory and accountings with the Commissioner of Accounts.

Consequently, Virginia probate involves ongoing reporting and oversight. For small estates below a set limit, Virginia allows collection by affidavit. Our Probate Documents service helps executors.

The Virginia probate tax

Virginia imposes a state probate tax on estates above a threshold that pass through probate. In addition, localities can add their own probate tax, up to one third of the state tax. As a result, larger probate estates pay noticeable amounts.

Assets in a living trust do not pass through probate. Therefore, they generally avoid the probate tax. A living trust consultation estimates the savings.

Virginia transfer-on-death deeds

Virginia allows transfer-on-death deeds for real estate. They pass property at death without probate. Moreover, you keep full control during life.

TOD deeds are simple. However, they do not help with incapacity or management for beneficiaries. Consequently, many Virginians use a trust for broader goals.

Funding your trust in Virginia

A trust only avoids probate for assets it actually owns. Therefore, funding is the step that makes everything work.

Real estate

Virginia homes are transferred to the trust by deed, recorded in the land records of the circuit court clerk. Transfers into your own revocable trust are generally exempt from recordation taxes when correctly documented. Alternatively, a transfer-on-death deed can name the trust as beneficiary.

Accounts, retirement and insurance

Next, retitle bank and brokerage accounts into the trust's name, or add the trust as the payable-on-death beneficiary where allowed. Retirement accounts usually stay in your name with beneficiary designations instead. Similarly, life insurance can name the trust or individuals.

Personal property

Finally, an assignment of personal property moves household items into the trust. Our Living Trust package includes step-by-step funding instructions for Virginia. Consequently, nothing important is left behind.

Blended families, children and choosing a trustee in Virginia

Blended families need careful planning. For example, a parent may want to support a new spouse while protecting an inheritance for children from an earlier marriage. In addition, Virginia gives a surviving spouse an augmented estate elective share in many cases, which can affect plans for children from an earlier marriage. Therefore, a trust can hold assets for the surviving spouse for life and then pass the remainder to the children.

Similarly, a trust can manage money for minor children until they are older, instead of handing everything over at 18. Moreover, you choose the successor trustee. Pick someone organized, honest and willing, or name a professional trustee when family dynamics are complex.

If you already have a trust, a trust review checks whether it still fits your family and Virginia law.

Flat fee living trust pricing and documents in Virginia

Our Living Trust service starts at $199 for Virginia. The standard package tailors the trust to Virginia law and your family. Meanwhile, the premium package adds attorney review.

A complete plan also needs a durable power of attorney and an advance medical directive, each with Virginia signing requirements. Our Estate Plan Bundle prepares these to Virginia standards. In addition, our durable power of attorney and healthcare directive services are available individually.

Not sure whether a trust is worth it for you? A living trust consultation compares a trust with a will and other probate-avoidance tools. For more, read our national guide to flat fee living trusts.

Common living trust mistakes in Virginia

The most common mistake is signing a trust but never funding it. Consequently, assets left outside the trust may still need probate. In Virginia, another frequent problem is creating a trust but leaving accounts in your own name, which can still trigger probate and the probate tax.

Similarly, many people forget to update beneficiary designations on retirement accounts and life insurance. As a result, money can go to an ex-spouse or the wrong person. Therefore, review every designation when you sign your trust.

Finally, keep the trust current. Marriage, divorce, a new grandchild or a large change in assets should all prompt a review. In addition, store the original documents safely and tell your successor trustee where they are.

What the trustee does after a death in Virginia

When the trust creator dies, the successor trustee takes over without court involvement. First, the trustee obtains death certificates and secures the assets. Next, the trustee notifies beneficiaries as Virginia law requires.

After that, the trustee pays debts, expenses and any taxes. In particular, the trustee should confirm no assets remain that require qualification before the circuit court clerk. Then the trustee transfers or sells real estate by recording documents with the circuit court clerk's land records office.

Finally, the trustee distributes the remaining assets under the trust's terms and keeps records. Consequently, the family avoids probate and keeps matters private. Our executor documents service helps trustees and executors stay organized.

Out-of-state property and moving to Virginia

Many Virginia families own property elsewhere, such as homes in the Outer Banks, Maryland or West Virginia. Without a trust, each state may require its own probate, called ancillary administration. Therefore, deed out-of-state property to your trust too.

If you move to Virginia with a trust from another state, it generally remains valid. However, it may not reflect Virginia's tax rules, property law or signing requirements for related documents. Consequently, a review after a move is wise. In addition, update your powers of attorney and healthcare documents to Virginia forms, because banks and hospitals accept familiar forms more readily.

Who benefits most from a living trust in Virginia?

A living trust is not essential for everyone. However, it adds real value in several situations. First, homeowners who want to keep their house out of probate benefit. Second, people who own property in more than one state avoid multiple probates.

Third, anyone concerned about incapacity benefits, because the successor trustee can step in without a court guardianship or conservatorship. Fourth, parents of young children or beneficiaries who need help managing money gain control over how and when assets are distributed.

In addition, Virginia has a probate tax, so avoiding probate saves real money as well as time. Consequently, many Virginia families find a trust worth the modest cost. A living trust consultation helps you decide.

Our Living Trusts services in Virginia

Every service below has a fixed price, is prepared by a qualified attorney and is delivered online — wherever you are in Virginia. Additionally, you can upload evidence, message your attorney and track progress from your secure client dashboard.

Living Trusts across Virginia — cities we serve

We work with clients in every part of Virginia, entirely online. Therefore, it does not matter whether you live downtown or hours from the nearest courthouse. Your documents follow Virginia law and your county's local practice. Choose your city below to see local details and prices.

• Virginia Beach: Revocable Living Trust in Virginia Beach · Complete Estate Plan Bundle in Virginia Beach · Living trust consultation in Virginia Beach
• Norfolk: Revocable Living Trust in Norfolk · Complete Estate Plan Bundle in Norfolk · Living trust consultation in Norfolk
• Chesapeake: Revocable Living Trust in Chesapeake · Complete Estate Plan Bundle in Chesapeake · Living trust consultation in Chesapeake
• Richmond: Revocable Living Trust in Richmond · Complete Estate Plan Bundle in Richmond · Living trust consultation in Richmond
• Arlington: Revocable Living Trust in Arlington · Complete Estate Plan Bundle in Arlington · Living trust consultation in Arlington
• Newport News: Revocable Living Trust in Newport News · Complete Estate Plan Bundle in Newport News · Living trust consultation in Newport News
• Alexandria: Revocable Living Trust in Alexandria · Complete Estate Plan Bundle in Alexandria · Living trust consultation in Alexandria
• Hampton: Revocable Living Trust in Hampton · Complete Estate Plan Bundle in Hampton · Living trust consultation in Hampton
• Roanoke: Revocable Living Trust in Roanoke · Complete Estate Plan Bundle in Roanoke · Living trust consultation in Roanoke

More Virginia services

Complete Estate Plan Bundle in Virginia · Living trust consultation in Virginia · Durable Power of Attorney in Virginia · Advance Healthcare Directive / Living Will in Virginia · Probate Documents Package in Virginia · Trust review in Virginia. See all legal services in Virginia.

Nearby states

Moving between states, or is the other party elsewhere? We also cover Revocable Living Trust in Maryland, Revocable Living Trust in District of Columbia, Revocable Living Trust in North Carolina, Revocable Living Trust in West Virginia, Revocable Living Trust in Tennessee. See every location we cover.

Frequently asked questions

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Related guides

This guide is general information, not legal advice for your situation. Every case is different — speak to a qualified attorney before you act.