Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney in Montana for advice specific to your situation.
Understanding the Probate Process in Montana
Probate is the court-supervised process that validates a decedent’s will, appoints a personal representative, collects assets, pays debts, and distributes the estate. In Montana, the process follows the Montana Uniform Probate Code (Title 72, MCA). A personal representative (sometimes called an executor) has a fiduciary duty to preserve the estate and pay valid claims.
Step-by-Step Guide to Managing Estate Expenses and Ongoing Bills
- Obtain Letters of Authority: After filing the will and petition for probate with the district court, the court issues letters of authority. These documents empower the personal representative to act on behalf of the estate.
- Open an Estate Bank Account: Deposit all estate funds into a separate estate account. This helps segregate personal and estate finances and creates a clear record for creditors and the court.
- Prepare an Inventory and Appraisal: Within 90 days of appointment, file an inventory and appraisal of estate assets (Mont. Code Ann. § 72-3-311). This provides a baseline for asset values and guides payment decisions.
- Notify Creditors: Publish a notice to creditors in a local newspaper and send direct notice to known creditors (Mont. Code Ann. § 72-3-705). Creditors generally have four months to file claims.
- Review and Classify Claims: Evaluate creditor claims. Montana divides claims into priority classes (e.g., administrative expenses, funeral costs, secured claims, unsecured claims) under § 72-3-711. Pay administrative expenses, including probate costs and personal representative fees, before other debts.
- Pay Ongoing Household and Utility Bills: Use estate funds to maintain the decedent’s residence, pay utilities, insurance, property taxes, and any mortgage payments. These are administrative expenses under § 72-3-703.
- Handle Disputed Claims: If a creditor’s claim is questionable, the personal representative may reject it in writing. The creditor can then file a petition in probate court. The court will decide if the claim is valid.
- Seek Court Approval for Extraordinary Expenses: For large or unusual expenses (e.g., selling real property to pay bills), petition the court for authorization to ensure protection from personal liability (§ 72-3-709).
- Maintain Detailed Records: Keep receipts and ledgers for all payments. You’ll need these for a final accounting to the court.
- File Final Accounting and Close the Estate: Once all debts and expenses are paid and assets distributed, file a final accounting and petition for discharge. The court will review, approve, and formally close the estate.
Helpful Hints
- Open a dedicated estate bank account immediately to avoid mixing personal and estate funds.
- Track deadlines carefully—creditors’ claims typically must be filed within four months of notice.
- Consult with a probate attorney early to draft notices, prepare filings, and navigate complex claims.
- Keep heirs and beneficiaries informed to reduce misunderstandings and disputes.
- Request periodic court reviews if the estate remains open past one year to address ongoing expenses.
- Consider bonding requirements—Montana may require a bond for the personal representative; this protects the estate from mismanagement.
- Retain all documentation for at least seven years in case of post-closing audits or disputes.