Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified Montana attorney for guidance.
Detailed Answer
When someone dies without a will in Montana, their assets pass under the intestacy statutes. If a minor stands to inherit, Montana law requires safeguards to protect that child’s share until they reach the age of majority (18).
1. Intestate Succession Rules
Montana Code Annotated § 72-2-103 sets out who inherits when there is no will. If a decedent leaves only one child who is under 18 and no surviving spouse, the child inherits the entire estate. If there is a surviving spouse and a minor child, they split the estate per Montana Code Annotated § 72-2-103 (https://leg.mt.gov/bills/mca/title_0720/chapter_0020/part_0010/section_0030/72-2-103).
2. Appointment of a Personal Representative
The court appoints a personal representative (PR) to administer the estate. The PR values assets, notifies creditors, and distributes property following Montana Code Annotated § 72-3-201 et seq. The PR must identify any minor beneficiaries and notify the court.
3. Guardianship of the Minor’s Estate
If a minor inherits real or personal property of significant value, the court appoints a guardian of the minor’s estate under Montana Code Annotated § 72-5-201 (https://leg.mt.gov/bills/mca/title_0720/chapter_0050/part_0020/section_0010/72-5-201). The guardian holds and manages the assets, invests prudently, and reports to the court. Distributions of principal require court approval and are limited to the child’s health, education, support, or maintenance.
4. Custodianship under the Uniform Transfers to Minors Act (UTMA)
For smaller estates or personal property, the court may appoint a custodian under Montana’s UTMA (Mont. Code Ann. § 72-3-101 et seq.; https://leg.mt.gov/bills/mca/title_0720/chapter_0030/part_0010/section_0010/72-3-101). A custodian can manage up to a specified value threshold without full guardianship proceedings. The custodian holds funds until the minor reaches the age set by statute (usually 18 or older if specified).
5. Trusts as an Alternative
Although the decedent did not leave a trust, the estate PR or guardian can petition the court to create a court-approved trust for the minor’s benefit. This trust functions similarly to a guardianship account but offers more flexible distribution terms within court guidelines.
6. Final Distribution
Under guardianship or UTMA, assets remain under court supervision until the minor turns 18. At that point, the guardian or custodian delivers the remaining inheritance directly to the child.
Helpful Hints
- Act early: Petition for appointment of a guardian of the estate or UTMA custodian as soon as probate begins.
- Keep detailed records: Guardians and custodians must file annual accountings with the court.
- Conserve assets: Invest conservatively to preserve inheritance for the minor’s future.
- Seek professional advice: Probate and guardianship proceedings can be complex; consider hiring a Montana probate attorney.
- Understand timelines: Guardianship appointments and accountings follow strict deadlines set by Montana law.