Detailed Answer
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Always consult a qualified attorney for advice on your specific situation.
1. Appointment of a Personal Representative
Under Montana law, probate begins when someone petitions the district court to appoint a personal representative (also called an executor). The court reviews the petition and, if proper, issues letters testamentary or letters of administration. The personal representative gains authority to manage estate affairs, including paying expenses and creditor claims. (See Mont. Code Ann. § 72-3-201.)
2. Notice to Creditors
The personal representative must give notice to creditors to ensure claims surface before asset distribution. They must:
- Publish notice once a week for three consecutive weeks in a local newspaper.
- Mail written notice to known creditors.
This process follows Mont. Code Ann. § 72-3-817. For detailed requirements, see the Probate Code: § 72-3-817.
3. Inventory and Appraisal
Within three months of appointment, the personal representative must file a complete inventory and appraisal of estate assets under Mont. Code Ann. § 72-3-706. This inventory establishes the estate’s value and identifies any property subject to claims or expenses. (Link: § 72-3-706)
4. Claim Filing Period
Creditors generally have four months from the first publication date of the notice to present claims against the estate. Late claims may be barred unless the court allows them for cause. (See Mont. Code Ann. § 72-3-817.)
5. Reviewing and Allowing Claims
The personal representative reviews each claim and decides whether to allow or disallow it. If a creditor’s claim is disputed, the representative may object and set a hearing. The court then rules on the validity and priority of the claim.
6. Paying Expenses and Approved Claims
Before distributing assets to heirs, the personal representative must pay:
- Administrative expenses (court costs, bonds, professional fees).
- Estate debts and allowed creditor claims.
Montana law prioritizes funeral expenses, administration costs, and secured claims over general unsecured claims. See Mont. Code Ann. § 72-3-818 for specific payment order. (You can view it via the Probate Code directory: Title 72, Ch. 3.)
7. Final Accounting and Court Approval
Once claims and expenses are paid, the personal representative prepares a final accounting of all receipts and disbursements. The court reviews and approves the accounting, ensuring all liabilities are satisfied. Only after court approval can the representative distribute remaining assets to heirs or beneficiaries.
8. Distribution of Remaining Assets
After court approval of the final accounting, the personal representative distributes remaining assets according to the decedent’s will or, if no valid will exists, per Montana’s intestacy laws (Mont. Code Ann. § 72-2-104).
Helpful Hints
- Keep detailed records of notices, inventories, and all financial transactions.
- Work with a qualified probate attorney to meet strict filing deadlines.
- Notify known creditors early to avoid late-claim disputes.
- Obtain professional appraisals for complex or high-value assets.
- Review Montana’s probate statutes online to understand priority rules for claims.