SIGMT Winter 2023

Issue link:

Contents of this Issue


Page 100 of 107

SIGNATURE MONTANA | 101 A REALTORĀ® will help you navigate one of the most complex & important transactions of your life. Find Your REALTORĀ® Today! Beneficiary designations Beneficiary designations are another common method for transferring assets outside of probate. One of the most common examples is life insurance. Most people with life insurance have named individuals as beneficiaries to receive the insurance proceeds when they die. Transfer on Death Deed Montana law also allows you to file a Transfer on Death Deed that designates whom your real property should go to when you die. Upon your death, the property automatically transfers to whomever you designate. You still own the entire property up to the time of your death. Any Mortgages on the property will remain, and the creditor interests will need to be resolved aer your death by your heirs. Beneficiary designations for titled vehicles Montana allows you to make a beneficiary designation on your vehicle, boat, or trailer title. e Montana Motor Vehicle Department uses form MV13, a beneficiary designation form. Using this designation, you retain 100% ownership of your vehicle during your lifetime, and only upon your death will the title to the vehicle transfer to the person you designate. Gis You can give your property away before you die as a way of making transfers to those you wish to have the property. As of this writing, you can give up to $16,000 to an individual and $32,000 to a couple and not incur a gi tax. If you intend to gi large amounts of money, you should consult with a tax professional. Trusts A trust is a legal entity you set up to hold your assets that controls how your money and property are distributed aer you die. You can set up a revocable living trust where you transfer your assets into the trust you control and manage for your own interests. When you die, a trustee you designate will manage the trust according to the instructions you have incorporated into the trust agreement. Trusts can be very complicated and expensive but can also provide significant advantages over other types of non-probate transfers discussed above. Probate law has evolved to make the process more efficient and less expensive. Probate can usually be avoided if the estate's value is less than $50,000. A typical probate takes six to ten months to complete and costs about $800 to $1,500. Aorney's fees can vary widely, especially if litigation between heirs is involved. e best way to avoid a lengthy and expensive probate is to plan ahead and clearly articulate your wishes in your will or predetermine where all of your assets go. Even if you have planned to avoid probate, you should have a will to ensure your wishes are carried out if something does not transfer as you thought it would. As with all transfer designations or will bequests, it is important to keep them up to date and reflect any changes in your circumstances. For instance, you will need to modify most of your estate planning following a divorce. If a beneficiary dies or you change your mind, you will have to take affirmative steps to change those designations to ensure your wishes are fulfilled. S MT TARUM LAW OFFICE P.C. 406.268.0001 406.268.0001 Bankruptcy Personal Injury

Articles in this issue

Links on this page

Archives of this issue

view archives of SigMT - SIGMT Winter 2023