Determining Whether a Transferred Vehicle Must Be Treated as Estate Property in Montana
When someone dies, assets they owned may pass through probate or transfer automatically to a designated recipient. A vehicle that the decedent “transferred” before death may still end up in the estate if Montana law requirements were not met. This article explains how to decide whether a transferred vehicle remains estate property after a decedent’s death under Montana law.
Detailed Answer
1. Check Title Ownership at Time of Death
Examine the certificate of title and registration on the decedent’s date of death. If the decedent held sole title, the vehicle presumptively belongs to the probate estate under MCA § 72-2-102. Jointly titled vehicles with rights of survivorship pass outside probate to the surviving co-owner.
2. Validate Any Inter Vivos Gift
An inter vivos gift requires (1) clear intent to give, (2) delivery of the title certificate properly endorsed to the donee, and (3) acceptance by the donee before the donor’s death. Absent these elements, the gift fails and the vehicle remains in the estate.
3. Confirm Transfer-on-Death (TOD) Registration
Under Montana’s TOD statute, a vehicle owner may appoint a beneficiary who automatically acquires title upon the owner’s death. The owner must record a valid TOD designation on the title before death. If recorded properly, the vehicle avoids probate under MCA § 61-3-489. If no valid TOD exists, the vehicle remains estate property.
4. Watch for Undue Influence or Incapacity Challenges
If a transfer occurred shortly before death, heirs or creditors may contest it on grounds of undue influence, fraud, or lack of capacity. A successful challenge causes the transfer to be set aside and the vehicle to enter the estate.
5. Gather Documentation
To confirm whether a vehicle ended up in the estate, review:
- Original certificate of title and any reassignment endorsements
- Death certificate of the decedent
- Joint-owner affidavits and beneficiary designation forms
- Probate-court filings or small-estate affidavits
Helpful Hints
- Always verify the title record date-stamped by the Montana Motor Vehicle Division.
- Keep copies of signed title transfers, endorsements, and TOD beneficiary forms.
- Consult probate rules early if you find ambiguous transfers within six months of death.
- Consider a small-estate affidavit if the vehicle’s value falls below the threshold in MCA § 72-2-306.
- Speak with a Montana probate attorney if you suspect undue influence or capacity issues.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney in Montana for advice specific to your situation.