Montana Probate Law & How It Works

After the death of a loved one, that person’s assets need to be distributed to heirs and beneficiaries. Often, this requires the estate going through the probate process, which can be lengthy, complex, and confusing.

Probate is a court-guided process that involves validating a deceased person’s will (if one exists) and having an administrator distribute the probate assets according to instructions of the will or laws of intestacy. In Montana, probate takes a minimum of six months. In the meantime, you may be wondering if there’s a shortcut to getting ahold of some of your inheritance in advance.

The good news is that this can be an option through something called an “inheritance advance.” To learn more, call Rockpoint Probate Funding at (888) 263-8588.

Is Probate Required in Montana?

Generally speaking, probate is indeed required in Montana in order to settle the deceased person’s estate. In some cases, however, the period can be compressed or skipped altogether, especially when the size of the estate is relatively small.

There are two ways this can happen:

1. Small Estate Affidavit: When the value of an estate’s personal property (excluding land) is less than $100,000, you can seek a small estate affidavit. Here, you would sign an affidavit that describes the property and includes a statement that you are entitled to said property. This allows you to skip the entire probate process.
2. Summary Administration: A second alternative is summary administration, which is sometimes referred to as summary probate. While you can’t skip probate with summary administration, you can dramatically shorten the process.
   There are specific requirements for qualifying for summary administration, including a maximum threshold at which an estate can be valued. The total must be less than the sum of various allowances and costs, so this amount will be different for each estate.

How the Montana Probate Process Works

Once you understand the various steps that go into the probate process, you may have a better appreciation of why it takes so long!

A high-level overview includes these steps:

1. File a petition with the court. Probate begins by filing the deceased person’s will with the District Court in the same county in which the deceased person resided at the time of their death. Along with this filing, you will file a petition to open the probate process.  
   Note that if the person dies without a will, there is no will to file, and the probate process will proceed according to Montana’s Intestate succession laws. These laws indicate who gets what, typically based on a hierarchy of familial relationships.
2. Interested parties are notified. Any heirs, beneficiaries, and creditors will receive notification of a hearing about the probate proceeding. This notice serves as a way for interested parties to participate in the process or contest anything in the will.
3. An executor is appointed. If the will names an executor, that person will be responsible for managing the estate throughout the probate process. If an executor is not named, one may be appointed by the court. Executor compensation may be determined by the terms of the will or by a court’s estimation of the reasonable value of services.
4. The estate is inventoried and appraised. One of the first major duties of the executor is to inventory the entire estate and get valuations for the assets, including real and personal property.
5. Pay outstanding debts. Any outstanding debts and tax bills must be paid before heirs and beneficiaries receive anything.
6. Distribute assets. Finally, the remaining assets can be distributed to the named or legally entitled heirs and beneficiaries.

5 Tips To Avoid Probate in Montana

Any time there is a will, it must be probated. However, that doesn’t mean all the assets in someone’s estate have to go through probate. There are various estate planning tools that allow assets to pass directly to a beneficiary without having to wait for the probate process to resolve.

These methods allow you to avoid probate:

1. Create a revocable living trust. People can create a trust while alive that has specific instructions about how to distribute assets upon death.
2. Hold property in joint ownership. When property is held jointly (referred to as joint ownership with the right of survivorship), when one person dies, the other person automatically assumes full ownership.
3. Establish pay-on-death (POD) accounts. These accounts include life insurance policies, IRAs and other retirement accounts, and bank accounts. An individual can name a beneficiary, and that person simply needs to furnish a death certificate to collect payment.
4. Use transfer-on-death (TOD) deeds. Similar to POD accounts, a transfer-on-death deed allows someone to designate a beneficiary to receive property upon that person’s death.
5. Distribute gifts during one’s lifetime. By giving away assets while alive, they don’t have to go through probate upon death.

Understanding the Role of Executors in Montana Probate

In Montana, the executor plays a crucial role in the probate process, acting as the person entrusted with managing the deceased’s estate. This includes filing the will with the court, notifying heirs and beneficiaries, and ensuring that all debts and taxes are paid before distributing the estate’s assets. Executors are responsible for making decisions that can significantly affect the estate’s value, and they are expected to act in the best interest of the beneficiaries throughout the process.

The executor’s duties also include inventorying the estate’s assets, obtaining appraisals, and selling property if necessary. It is essential for executors to keep accurate records and maintain clear communication with heirs and beneficiaries to avoid conflicts or misunderstandings. Furthermore, if there are no executors named in the will, the court will appoint someone, ensuring that the estate is managed according to Montana’s probate laws.

Probate Timeline in Montana

The timeline for probate in Montana can vary significantly depending on several factors, including the complexity of the estate and whether any disputes arise among heirs or creditors. Typically, the process can take a minimum of six months, during which the executor handles various tasks such as notifying beneficiaries, settling debts, and distributing assets. If the estate is large or more complicated, the process may stretch beyond a year, especially if contested issues arise.

Potential Challenges During the Probate Process

While the probate process is an important step in estate administration, it can come with numerous challenges that may complicate matters. One common issue arises when there is a dispute among heirs regarding the distribution of assets, especially if the decedent did not leave a clear will. Such disputes can lead to lengthy court battles, further delaying the settlement process and increasing legal fees that diminish the estate’s value.

Another challenge can be the identification and valuation of assets, particularly if they are not well-documented. Executors may face difficulties in tracking down all of the deceased’s property or establishing fair market values for them. This complexity necessitates thorough organization and may require professional appraisals, adding additional time and costs to the probate process, which can ultimately impact the beneficiaries’ inheritance.

When To Consider Getting an Inheritance Advance

An inheritance advance is a way to collect your inheritance and begin enjoying it immediately instead of waiting for the probate process to conclude. People can benefit from an inheritance advance in the following situations:

• They have immediate financial needs or debt obligations.
• They want to avoid accumulating debt.
• They have an investment opportunity they want to take advantage of but need cash.
• There are delays in the probate process that could go on for months or years.
• The estate has immediate debt liabilities that must be satisfied.

How an Inheritance Advance Works in Montana

The inheritance advance process can be very simple, especially when you work with us. It begins by filing a simple application, and we will evaluate your eligibility based on numerous factors, including the value of your inheritance.

If you are eligible, we will extend an offer, which will be a percentage of your expected inheritance. We will not perform any credit checks, and you can use the money however you wish. The best part is that if you don’t prevail in probate, you don’t have to pay anything back.

Don’t Wait for Probate – Get Cash As Fast As Today

If you prefer not to wait months or years to collect your inheritance, you have options. Contact Rockpoint Probate Funding at (888) 263-8588 to learn more or begin the application process.