Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
Step 1: Inventory and Appraise All Estate Assets
Begin by listing every asset the decedent owned at death. Under Mont. Code Ann. § 72-3-1101, the personal representative must file an inventory and appraisal with the court. Typical assets include:
- Real property (homes, land)
- Bank accounts, investments, retirement plans
- Personal property (vehicles, jewelry, furniture)
- Business interests
- Digital assets and intellectual property
Step 2: Notify Creditors and Pay Valid Debts
Next, notify all known creditors and publish notice to unknown creditors. Under Mont. Code Ann. § 72-3-701, creditors generally must file claims within four months of appointment. Once claim deadlines expire, pay debts in the order prescribed by Mont. Code Ann. § 72-3-711:
- Funeral expenses and administration costs
- Family allowances and homestead allowances
- Estate taxes and inheritance taxes
- Secured debts (mortgages, liens)
- Unsecured debts (credit cards, medical bills)
Step 3: Compensate the Personal Representative
The personal representative is entitled to reasonable compensation for services rendered. Montana caps these fees under Mont. Code Ann. § 72-3-712. Deduct this amount before distributing remaining assets.
Step 4: Calculate the Residuary Estate
After paying debts, taxes, and representative fees, the assets left form the residuary estate. Montana defines this remainder under Mont. Code Ann. § 72-3-713. These assets pass to beneficiaries according to the will or Montana’s intestacy laws if there is no valid will.
Helpful Hints
- Maintain a detailed spreadsheet of all assets and claims.
- Track creditor deadlines to avoid disallowance of claims.
- Keep copies of appraisals, receipts, and court filings.
- Consider consulting a probate attorney for complex estates.
- Communicate regularly with beneficiaries about the process.