How to Settle an Estate in Montana — Complete Step-by-Step Guide

Start with the physical paper trail. The original will (not a copy) is typically kept in a home safe, a fireproof box, an attorney's office, or a bank safe deposit box. Trust documents, life insurance policies, deeds, vehicle titles, and recent tax returns usually live nearby. Doing this in the first 48–72 hours — before the home is cleared, before well-meaning relatives 'tidy up,' and before a safe deposit box is sealed — makes everything that follows easier.

The funeral director typically orders the first batch of certified copies. Order more than you think you need. Banks, brokerages, life insurance carriers, the IRS, the Social Security Administration, the DMV (vehicle titles), your county recorder (real estate transfer), and the probate court each want an original certified copy — not a photocopy. Reordering takes 2–4 weeks at the state level; counties (where available) often turn around faster.

On vital records in Montana: $12 per copy. In Montana, the state vital records office is the issuing authority for death certificates. (Dollar thresholds for Montana verified 2026-04; confirm against the official link before relying on a specific figure.)

Within the first week, change the locks if non-resident family or contractors had keys, set up mail forwarding to your address, and arrange care for pets. Photograph every room before anything is moved — this is the only inventory you'll have if a dispute arises later. If the decedent owned vehicles, secure the keys and confirm where they are physically located. Don't drive a decedent's car for personal use; in many states the title transfer hasn't happened yet and insurance coverage is uncertain.

Most estates fall into one of three buckets. (1) Small estates that qualify for an affidavit or summary procedure — usually self-serviceable. (2) Standard probate estates with a clear will, no disputes, and a family that gets along — workable with this plan plus a 1-hour consult to confirm local procedure. (3) Estates that should engage counsel from day one: contested estates, estates that may owe federal or state estate tax, estates where the decedent received Medicaid long-term care benefits (estate recovery exposure), estates with closely-held business interests, blended-family estates with inheritance disputes brewing, and any case where the personal representative could face personal liability for tax or creditor claims.

Retainers for routine probate typically run $2,000–$8,000 in most states. The tax savings from filing a Form 706 portability election alone — even when no tax is owed — can easily pay for the engagement.

Some payments must be stopped immediately because keeping them creates a debt you'll later have to repay: Social Security retirement and disability checks for the month of death and after, VA pension or disability for the month after death, pension benefits with no survivor option. Other autopays are subtler — gym memberships, streaming services, subscriptions — and can be paused once the estate account is open, since paying them out of personal funds isn't yet possible. Be careful not to stop payments that protect the estate (homeowner's insurance, property taxes, utility connections that prevent damage).

The personal representative (called executor where there's a will, administrator where there isn't) is the legal person responsible for administering the estate. If there's a will, the named executor petitions the court to be formally appointed. With no will, state law sets a priority order — typically surviving spouse, then adult children, then parents, siblings, and other heirs. The personal representative is a fiduciary and can be held personally liable for mistakes.

Probate covers solely-owned property without a beneficiary or transfer-on-death designation. Non-probate assets — joint tenancy with right of survivorship, tenancy by the entirety (between spouses), TOD/POD accounts, life insurance with named beneficiaries, retirement accounts with named beneficiaries, trust assets, and assets governed by a TOD deed where state law allows — pass directly to the named beneficiary without court involvement. In a typical estate, the non-probate share is larger than the probate share. Mapping this correctly upfront tells you which workflow each asset follows and whether the probate estate is small enough for a summary procedure.

Almost every state offers a small-estate affidavit (no court involvement) and/or a summary administration (a streamlined court procedure) for estates below a state-specific threshold. Thresholds vary widely: Texas's small-estate affidavit caps at $75,000, Illinois at $150,000, California's at $239,700 for 2026. Some states (Pennsylvania, Ohio) require a court petition rather than an out-of-court affidavit. Real estate often cannot pass through a small-estate affidavit — even if the rest of the estate qualifies, real estate may need a separate transfer mechanism (TOD deed, separate petition, or affidavit of heirship).

In Montana: the small-estate affidavit threshold is $50,000. Affidavit (§72-3-1101 MCA): personal property ≤$50,000. 30-day wait. Presented directly to asset holders.

Summary administration when estate does not exceed allowances and expenses.

For real estate: TOD deed available. (Dollar thresholds for Montana verified 2026-04; confirm against the official link before relying on a specific figure.)

The Social Security Administration must be notified of the death. Funeral homes typically report deaths to SSA as part of their service — confirm this happened and don't assume. Once SSA is notified, all retirement and disability payments stop. Important: SSA benefits are paid the month after they're earned, and any payment for the month of death (or after) must be returned. Retain those funds in the decedent's account until SSA reclaims them.

Separately, a surviving spouse and minor children may be eligible for survivor benefits and a one-time $255 lump-sum death payment. Apply within 2 years of death.

Most states have a statutory duty to deposit (or lodge) the original will with the probate court within a specific window after death — commonly 30 days, with some states reaching 90 days. This duty applies even if the estate qualifies for a small-estate procedure or if probate ultimately won't be opened. Failing to file can expose the holder of the will to civil and (in some states) criminal liability.

Filing the will with the court is procedural — it doesn't open probate. Probate is opened separately when the named executor petitions for appointment.

Opening probate is a court filing that formally starts the case. The petition typically includes the will (if any), the death certificate, a list of heirs and beneficiaries, an estimate of the estate's value, and a request to appoint a personal representative. Most states have specific forms; some counties require e-filing. The court schedules a hearing (in many states, only required if there's an objection) and issues an order appointing the personal representative.

In Montana: probate is filed in the District Court of the county where the decedent was domiciled. E-filing availability varies by county. Montana uses UUPC informal probate.

Letters Testamentary (named in a will) or Letters of Administration (no will) are the court's formal grant of authority to the personal representative. Every institution holding estate assets will require a current certified copy — typically dated within the last 30–90 days. Order at least 5–10 certified copies upfront. Some states require the personal representative to post a bond before letters issue; the will may waive this requirement, and beneficiaries can usually consent to waive it for an unbonded representative.

An estate is a separate taxable entity from the decedent and requires its own Employer Identification Number (EIN). Apply through the IRS — the online application takes about 15 minutes and issues the EIN immediately. You'll need it to open the estate bank account and to file the estate's income tax return (Form 1041). Apply using Form SS-4 (paper) or the online EIN application; the online tool issues the number immediately during business hours.

Open a checking account in the name of the estate using the EIN. Every estate-related transaction — deposits of refunds, sales proceeds, dividends; payments to creditors, attorneys, accountants; reimbursements; eventual distributions — flows through this single account. Don't co-mingle with personal funds and don't continue to use the decedent's pre-death account. Most banks have an estate account product; you'll typically need the EIN, certified letters, and the death certificate.

An inventory lists every estate asset and its date-of-death value, plus debts the estate owes. Most states require the personal representative to file an inventory with the court within 60–90 days of appointment. Even where it's not required, a clear inventory is the foundation of every later step — distribution, accounting, tax filings, and the final closing all depend on it. Date-of-death values become the cost basis for inherited assets (the 'stepped-up basis' that often eliminates capital gains for heirs).

States vary on whether publication of notice is required, optional (but valuable), or unnecessary. Where required (most states), the notice must run in a newspaper of general circulation in the county for a state-specified number of weeks; that publication starts the creditor-claim window — typically 3 to 6 months. Direct notice to known or reasonably ascertainable creditors is required separately, and starts a shorter clock for that creditor (often 30 days from notice). Distributing assets before creditors are barred exposes the personal representative to personal liability for any unsatisfied valid claim.

In Montana: publication required; the effective creditor-claim window is 120 days. Creditors have 4 months from publication or 60 days from mailed notice, whichever is later.

The decedent's final personal income tax return (Form 1040) covers income from January 1 of the year of death through the date of death. It's filed by the personal representative and is due on the same date as a normal return — typically April 15 of the following year (with the same automatic extensions available). Mark 'Deceased' across the top and include the date of death. A surviving spouse may still file a joint return for the year of death.

After death, income earned by estate assets — interest on bank accounts, dividends from brokerage holdings, rental income — belongs to the estate, not to the decedent. If gross income exceeds $600 in any year of administration (or any beneficiary is a non-resident alien), the estate must file Form 1041. The estate may elect a fiscal tax year ending up to 12 months after the date of death, which can simplify timing. A skilled CPA familiar with estates is the right hire here for any non-trivial estate.

A handful of states impose their own estate tax in addition to (or independent of) federal estate tax. State exemptions are typically much lower than the federal figure — Massachusetts and Oregon at $1M, Washington at $3M, New York at $7.35M, Illinois at $4M. State filing deadlines generally track the federal 9-month window. If your decedent's state imposes an estate tax, this is a separate return on a separate form, often filed with a state department of revenue rather than the probate court.

Good news for Montana: Montana does not impose its own state estate tax. Only the federal Form 706 may apply (and only for very large estates).

Inheritance tax is different from estate tax. Estate tax is paid by the estate based on its total size; inheritance tax is paid by the recipient based on their relationship to the decedent. Five states impose inheritance tax: Pennsylvania, New Jersey, Kentucky, Montana, and Nebraska. Spouses and (in most states) descendants are exempt or pay reduced rates; siblings, nieces and nephews, and unrelated heirs pay higher rates. Pennsylvania notably gives a 5% discount for paying within 3 months — early payment is genuinely worthwhile.

Good news for Montana: Montana does not impose a state inheritance tax. (Distinct from state estate tax — only PA, NJ, KY, MD, and NE impose inheritance tax in 2026.)

Life insurance with a named beneficiary pays directly to that beneficiary — outside probate, not part of the estate, and not subject to probate creditor claims. Where the named beneficiary is the estate (or 'estate of insured'), the proceeds are part of the estate and follow the will. Named beneficiaries should file claims directly with the insurer; the insurer typically pays within 30–60 days of receiving a certified death certificate and claim form. For policies the decedent forgot or lost track of, search the NAIC's life insurance policy locator.

Retirement accounts pass to the named beneficiary outside probate. What the beneficiary can do depends on their relationship to the decedent and the post-SECURE-Act rules: a surviving spouse can roll the account into their own IRA. Most non-spouse beneficiaries (the SECURE Act's 'designated beneficiary' rules) must withdraw the entire account within 10 years; certain beneficiaries (minor children, disabled, chronically ill, or beneficiaries less than 10 years younger than the decedent) can stretch over their life expectancy. Withdrawals are taxable income to the beneficiary in the year withdrawn — timing matters.

Bank and brokerage accounts with a TOD (transfer on death) or POD (pay on death) designation pay directly to the named person — the bank or brokerage takes a death certificate and pays out, no court order required. Sole-owned accounts without a TOD/POD become part of the probate estate and require Letters Testamentary / Administration before the institution will release them. Joint accounts with right of survivorship pass to the surviving owner. Each institution has its own form and its own definition of acceptable documentation.

Real property follows a state-specific transfer track. Property held in joint tenancy, tenancy by the entirety, or by a TOD deed (where state law allows) passes outside probate — typically by recording an affidavit of death or executing a beneficiary deed. Sole-owned real estate that's part of the probate estate must be transferred via the personal representative — to a named beneficiary in the will, to heirs by intestate succession, or by sale. If the personal representative sells real estate, listing requires court authority (varies by state), and the sale is reported on the estate's 1041.

Real estate appraisal at date of death establishes the stepped-up cost basis — get a licensed appraisal even if you don't intend to sell soon.

In Montana: TOD (transfer-on-death) deeds are available. Montana allows TOD deeds for real property.

Vehicle titles transfer through the state DMV. Most states have a simplified affidavit-of-heirship for vehicles below a value threshold, even when a small-estate affidavit isn't otherwise applicable. For vehicles in the probate estate, the personal representative signs the title over to the named beneficiary (or sells it on behalf of the estate). Update insurance to the new owner before driving.

Digital assets — email accounts, social media, cloud storage, photos, cryptocurrency, online subscriptions — are governed by the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), adopted by most states. Under RUFADAA, the personal representative can access the decedent's digital assets if (a) the decedent gave express consent in a will, trust, or via a tech provider's online tool ('legacy contact' on Apple/Google/Meta) or (b) by court order showing the access is necessary for estate administration. Cryptocurrency requires the private keys or seed phrase — without them, the assets are typically unrecoverable.

In Montana: Montana has adopted RUFADAA, which gives the personal representative explicit statutory authority to access the decedent's digital assets where the decedent consented or where access is necessary for administration. Montana adopted RUFADAA effective 2017.

Once the creditor-claim window closes, the personal representative reviews each claim filed during the window. Valid claims are paid from the estate; invalid or excessive claims can be disputed (states have a procedure for objecting). Order of payment matters — most states have a statutory priority (administration costs, funeral, taxes, secured debts, then unsecured). If the estate is insolvent (debts exceed assets), the personal representative pays in priority order until funds run out — paying a lower-priority creditor before a higher one creates personal liability.

The final accounting reconstructs every transaction the estate executed: all income received, all expenses paid, all distributions made, and the closing balance. Beneficiaries are entitled to a copy and have a window to object before distributions become final. A clean accounting protects the personal representative from later claims; a sloppy one invites lawsuits. In most states the accounting is filed with the court and sent to beneficiaries; some states allow a 'waiver of accounting' if all beneficiaries consent in writing.

Personal property — furniture, jewelry, art, family heirlooms, vehicles, and household goods — is typically distributed last. Where the will includes a separate writing or memorandum (allowed in most states under UPC 2-513), follow it. Where it doesn't, the residuary clause governs. Photograph each item before it leaves the estate, get signed receipts from each beneficiary, and document any beneficiary who declined or traded items. Most family disputes that turn into lawsuits trace back to a missing receipt for a 'priceless' item.

Protections in Montana that affect distribution:
• Family allowance: Family allowance.
• Homestead: UUPC homestead allowance and exempt property.
• Elective share: UUPC elective share based on years of marriage.

Before making the final distribution, confirm with the IRS and state department of revenue that no tax remains owed. For the IRS, file Form 5495 (Request for Discharge from Personal Liability) if you want formal protection from subsequent assessments. State requirements vary — some states issue a tax clearance letter that's required before the court will close the estate; others rely on the personal representative's representation. Skipping this step leaves the personal representative on the hook personally if the IRS or state later assesses tax that the estate could have paid.

After tax clearance and beneficiary consent, file the final accounting with the probate court along with a proposed final distribution. The court reviews the accounting against the inventory and any objections from beneficiaries. Where all beneficiaries have signed waivers and receipts, the court usually approves on the papers without a hearing. Without waivers, the court schedules a hearing — beneficiaries can object during a state-defined window.

After the court approves the final accounting and all releases are in, make final distributions to beneficiaries. Use cashier's checks or wires for clear records. Close the estate bank account once distributions clear. File a final petition for discharge of the personal representative — when granted, this releases the personal representative from further duties and (in most states) caps any potential liability. Keep all records for at least 7 years; some practitioners recommend permanent retention.