Detailed Answer
Under Montana law, courts use several checks to ensure an estate administrator (personal representative) fulfills duties and maintains bonded responsibility.
1. Bond Requirement
Upon appointment, administrators must post a surety bond. Montana Code Annotated (MCA) 72-3-201 requires a bond unless all heirs waive it in writing. The bond amount typically equals double the value of the estate’s personal property plus one year’s probable rental income for real property (MCA 72-3-201 and MCA 72-3-206).
2. Court Approval and Surety Standards
The court approves both the bond amount and the surety company according to MCA 72-3-216 (MCA 72-3-216). The surety guarantees performance of fiduciary duties.
3. Inventory and Appraisement
Within 90 days of appointment, the administrator must file an inventory and appraisement of estate assets under MCA 72-3-301 (MCA 72-3-301). This provides transparency and helps validate bond adequacy.
4. Accounting and Settlement
Periodic and final accountings must be filed with the court. Under MCA 72-3-501 (MCA 72-3-501), the court reviews receipts, disbursements, and fees. Interested parties may object and request a hearing on the accounting. The court can surcharge the administrator or surety for any breaches (MCA 72-3-512).
5. Notice to Creditors and Interested Parties
The administrator must publish notice to creditors under MCA 72-3-814 (MCA 72-3-814) and mail notices to heirs. Creditors and heirs can object to bond adequacy or administration practices.
6. Removal for Cause
If the administrator fails to perform duties, a party in interest can petition for removal. Grounds include neglect, waste, or mismanagement under MCA 72-3-417 (MCA 72-3-417).
7. Bond Claims
Beneficiaries or the estate may file a claim against the bond if the administrator misapplies funds or breaches fiduciary duties. The surety is jointly liable for losses up to the bond amount.
Disclaimer: This article provides general information on Montana probate procedures and is not legal advice. Consult a qualified attorney for guidance in your specific situation.
Helpful Hints
- File inventory and appraisals promptly to validate bond coverage.
- Keep organized records of all estate transactions and receipts.
- Review bond terms to ensure it covers potential liabilities.
- Notify heirs and creditors according to statutory deadlines.
- Respond quickly to accounting objections and court inquiries.
- Consider consulting an estate attorney for complex estates or disputes.