Short answer

After taxes, creditor claims, and estate administration expenses are paid or reserved, the personal representative (executor/administrator) distributes the remaining assets to the decedent’s children according to the decedent’s valid will or, if there is no will, according to Montana’s intestacy rules. The personal representative usually must prepare a final accounting, obtain court approval (if required), secure receipts/releases from beneficiaries, and file paperwork closing the estate.

Detailed process under Montana law

1. Verify authority to distribute.

   If the estate is being administered in probate, the personal representative named by the will or appointed by the court holds legal authority to manage and distribute assets. That authority continues until the estate is closed. For nonprobate property (life insurance, retirement accounts with named beneficiaries), the insurance company or plan administrator distributes directly to the named beneficiaries outside probate.

2. Confirm that all debts, administrative expenses, and taxes are paid or reserved.

   Before distribution, the estate must pay valid creditor claims and administrative costs (court costs, attorney and accountant fees, funeral expenses). The personal representative must also address federal estate tax obligations if the estate meets the federal filing thresholds (file IRS Form 706 if required). Montana does not currently have a state estate tax, but you should confirm current law and filing requirements.

3. Make sure timing and creditor notice requirements have been satisfied.

   Many administrations must wait specified creditor-claim periods or file required notices before distributing assets. If the probate is court-supervised, the court will often require formal notice and may require waiting for creditor claims to be filed. In informal or summary administrations the rules differ. Consult Montana probate rules or your attorney to confirm the applicable waiting period and notice steps (see Montana probate statutes: Montana Code Annotated, Title 72).

4. Determine beneficiaries and their shares.

   If there is a valid will, distribute according to the will’s directions. If there is no will (intestate), Montana statute governs how the estate is divided among surviving heirs. Typically, children inherit in equal shares unless the will or statute provides otherwise; if a child predeceased the decedent and left descendants, representation rules under Montana law determine whether the surviving grandchildren step into that child’s share. Check Montana’s intestacy provisions in the Montana Code (Title 72) for the specific distribution rules.

5. Prepare a final accounting and petition for distribution (if required).

   The personal representative prepares a complete accounting showing assets at death, receipts, payments (debts, expenses, taxes), and the proposed distribution. In supervised probate, the accounting and a petition for final distribution are filed with the court for approval. The court will review the accounting and may enter an order approving the final distribution.

6. Distribute assets and obtain receipts/releases.

   After court approval (or after any required waiting period in unsupervised administrations), the personal representative transfers cash, securities, or property to the children in the amounts required. For non-cash distributions, the representative should use written receipts or releases signed by beneficiaries. These receipts protect the representative from later claims and are usually required for closing the estate file.

7. File closing documents and be discharged.

   File the final accounting, inventories, receipts, and any required affidavits with the probate court and ask the court to discharge the personal representative. Once the court discharges the personal representative (or the statutory period for closing passes in informal administration), the administration is final and the representative’s duties end.

For official Montana statutes on probate, administration, and intestate succession, see Montana Code Annotated, Title 72: Probate, Decedents’ Estates, Trusts, and Fiduciaries: https://leg.mt.gov/bills/mca/.

For federal estate tax rules and Form 706 information, see the IRS: https://www.irs.gov/forms-pubs/about-form-706.

Common special situations

• Minor beneficiary: If a child beneficiary is a minor, the personal representative may need to place the child’s share in a guardianship account, a custodial account, or a trust depending on the amount and family wishes. Court supervision may be required for larger distributions to minors.
• Debts discovered after distribution: If a valid claim appears after distribution, the estate or recipient may have to address it depending on how final releases were structured. That is why reserves or formal court approval before distribution are common protections.
• Disputed claims among heirs: If heirs challenge distributions or the accounting, the personal representative should avoid making final distributions until disputes resolve or seek court guidance to avoid personal liability.
• Asset transfers in kind: When distributing property (real estate, business interests), the representative should use appraisals and written agreements about who receives what and obtain releases from beneficiaries.

Helpful hints — steps to make distribution smoother

• Keep clear records of every transaction: bank statements, checks, invoices, and receipts.
• Get written release receipts from each child when they accept their distribution.
• Consider keeping a modest cash reserve for late or unexpected claims until the estate is officially closed.
• Confirm whether federal estate tax filing is required (see IRS Form 706) before distributing significant assets.
• If estate assets include retirement accounts or transfer-on-death designations, check beneficiary designations — those assets pass outside probate.
• If any heir is a minor, consult the court clerk or an attorney about guardianship or trust options before distributing assets to that heir.
• If you expect disputes, get court approval of the final distribution or consider mediation to reduce litigation risk.
• When in doubt, consult a Montana probate attorney. The right attorney can prepare accounting, petitions, and closing paperwork to reduce personal liability for the personal representative.