When it comes to estate planning, understanding which assets pass under a will and which do not is crucial. In Montana, there are specific types of property that bypass a will, ensuring they are distributed according to their designated beneficiaries. Knowing what property does not pass under a will in Montana can help individuals make informed decisions when creating their estate plans.
Joint Property
One type of property that does not pass under a will in Montana is joint property with rights of survivorship. When two or more individuals own property jointly and one owner passes away, the surviving owner automatically inherits the deceased owner’s share of the property. This transfer occurs outside of the probate process, making joint property a non-probate asset.
Legal Reference: Montana Code Annotated § 72-6-214
Life Insurance Policies
Proceeds from life insurance policies are another example of assets that do not pass under a will in Montana. Life insurance policies typically designate a specific beneficiary to receive the death benefit upon the policyholder’s passing. These proceeds are paid directly to the named beneficiary and are not subject to probate.
Legal Reference: Montana Code Annotated § 33-20-701
Trusts
Assets held in a trust are also exempt from probate and do not pass under a will in Montana. A trust allows individuals to transfer assets to a trustee who manages the assets for the benefit of the trust’s beneficiaries. Since the trust owns the assets, they are not considered part of the decedent’s probate estate.
Legal Reference: Montana Code Annotated § 72-38-103
Final Distribution of Assets
Understanding which assets do not pass under a will in Montana is essential for effective estate planning. By properly designating beneficiaries for joint property, life insurance policies, and trusts, individuals can ensure that these assets are distributed according to their wishes without going through the probate process.
Buried in Work’s Additional Resources
Buried in Work provides Montana state-specific service provider directories and information related to estate preparation, end-of-life tasks, and estate transition information. Click here to learn more.
