Detailed Answer — How jointly held bank accounts and property are handled when someone dies without a will in Montana
Short answer: In Montana, whether jointly held accounts and property pass automatically to the survivor or become part of the deceased person’s estate that must be distributed under Montana’s intestacy rules depends on how the asset is titled and whether a beneficiary designation or survivorship language exists. Assets titled solely in the decedent’s name generally pass through probate and are distributed under Montana’s intestate succession laws (Title 72 of the Montana Code Annotated). Assets that are properly titled as joint tenancy with right of survivorship, tenancy by the entirety (for married couples if applicable), payable-on-death (POD) or transfer-on-death (TOD) accounts, or that have valid beneficiary designations, typically pass outside probate to the named survivor or beneficiary.
What “jointly held” can mean
- Joint tenancy with right of survivorship (JTWROS): The surviving joint tenant usually becomes the sole owner automatically at the moment of death. This transfer typically avoids probate.
- Tenancy in common: Each owner has a fractional interest. When one owner dies, that owner’s share does not automatically pass to the other co-owners; it becomes part of the decedent’s estate and is distributed under intestate succession if there is no will.
- Payable-on-death (POD) or transfer-on-death (TOD) accounts: These are bank or investment accounts that name a beneficiary who gets the funds outside probate after the owner’s death.
- Accounts or assets with beneficiary designations: Life insurance, retirement accounts, and some financial accounts pass to whoever is named as beneficiary, outside probate.
What happens if there is no will (intestate)?
If the decedent owned property in their own name alone and died without a will, the property generally becomes part of the probate estate. Montana’s intestate succession statutes govern who inherits and in what proportions. The typical order of priority under intestacy favors a surviving spouse and descendants (children, grandchildren), then parents, siblings, and more remote relatives if no spouse or descendants survive. Montana’s probate and intestacy rules are found in Title 72 of the Montana Code Annotated (probate, trusts, and fiduciary relations): see the Montana Code (Title 72) for details and the specific distribution rules.
Note: Property that passes automatically by survivorship (properly formed JTWROS, TOD/POD, or valid beneficiary designation) generally does not form part of the probate estate and is not distributed under intestacy.
Practical steps when someone dies with jointly held accounts or property
- Obtain the official death certificate. Financial institutions will require certified copies to release funds or change title.
- Locate titles, account agreements, beneficiary designations, and joint ownership documents. Banks and title companies will look to the legal title language and account forms to decide whether the asset passes outside probate.
- Contact the financial institution or county recorder where property is titled. Ask whether the account or deed includes survivorship language, POD/TOD beneficiary, or tenancy type (JTWROS vs tenancy in common).
- If the asset does not pass automatically, you may need to open a probate case in Montana to administer the estate and distribute assets under Montana’s intestacy laws. The probate court will guide the official process for transferring title and paying debts.
- For small estates, Montana may offer simplified procedures (small estate affidavit or summary probate processes) that let heirs collect certain assets without full probate. Check Montana probate resources or consult an attorney for thresholds and requirements.
Common issues and complications
- Joint accounts opened for convenience: Some courts look at intent. If a joint account was opened merely so a relative could help with bill-paying rather than to create a survivorship interest, the court might treat the funds as part of the decedent’s estate.
- Disputes among heirs: When title is unclear or multiple family members claim ownership, a probate action or quiet-title lawsuit may be necessary to resolve disputes.
- Creditors’ claims: Even if an asset passes outside probate by survivorship, creditors may have claims against the decedent’s estate that can affect distributions of estate assets.
Where to read Montana law and find help
Montana’s probate and intestacy statutes are in Title 72 of the Montana Code Annotated. You can review the Montana Code at the Montana Legislature’s website: https://leg.mt.gov/bills/mca/. For practical court forms, filing information, and self-help guidance about probate in Montana, see the Montana Judiciary or Montana Courts self-help resources: https://courts.mt.gov/selfhelp.
When to consult an attorney
Talk with a probate or estate attorney if you face any of the following: unclear or disputed ownership; significant assets that may require probate; creditor claims; or complex family situations (second marriages, blended families, missing heirs). An attorney can explain whether assets pass by survivorship or must go through probate and can help you open probate or use simplified procedures when appropriate.
Disclaimer
This article is for educational purposes only and is not legal advice. Laws change and specific results depend on the exact facts and documentation. For advice about a particular situation in Montana, consult a licensed Montana attorney.
Helpful Hints
- Check the exact wording on deeds and account agreements: survivorship language or beneficiary designations control transfer at death.
- Obtain multiple certified copies of the death certificate early — banks and title companies require them.
- Keep beneficiary designations up to date on life insurance and retirement accounts — they override wills for those assets.
- If you think an account was opened for convenience only, gather evidence of intent (who paid the bills, who deposited funds, and why the account was opened).
- Contact the clerk of the local district court or a Montana probate attorney to learn whether your situation qualifies for simplified or small estate procedures.
- When in doubt, get professional help. Mistakes in transferring real property or accounts can be costly and time-consuming to fix.