Are Beneficiary Designations Protected in Montana?

Yes. Montana automatically revokes an ex-spouse as beneficiary upon divorce for the following asset types: life insurance, retirement accounts, pod accounts, tod accounts, annuities.MCA § 72-2-716; § 72-2-813; § 72-2-814; § 25-13-608; §§ 72-6-201 to 72-6-228 (Multiple-Party Accounts); §§ 72-6-301 to 72-6-311 (Uniform TOD Security Registration Act); §§ 72-6-401 to 72-6-418 (Uniform Real Property Transfer on Death Act); §§ 72-2-817 to 72-2-833 (Uniform Disclaimer of Property Interests Act); Title 72 Ch. 26 (UTMA); In re Golz, 2015 MT 318Verified Jul 13, 2026 However, ERISA-governed employer plans such as 401(k)s and pensions are subject to federal law and must be updated manually regardless of state rules.

Montana does not provide specific creditor protection for inherited IRAs.MCA § 72-2-716; § 72-2-813; § 72-2-814; § 25-13-608; §§ 72-6-201 to 72-6-228 (Multiple-Party Accounts); §§ 72-6-301 to 72-6-311 (Uniform TOD Security Registration Act); §§ 72-6-401 to 72-6-418 (Uniform Real Property Transfer on Death Act); §§ 72-2-817 to 72-2-833 (Uniform Disclaimer of Property Interests Act); Title 72 Ch. 26 (UTMA); In re Golz, 2015 MT 318Verified Jul 13, 2026 Following the Supreme Court's Clark v. Rameker (2014) decision, inherited IRAs are generally not protected in bankruptcy proceedings in states without their own protective statutes.

Yes. The federal Employee Retirement Income Security Act (ERISA) preempts state law for employer-sponsored plans such as 401(k)s, pensions, and group life insurance. Even if Montana automatically revokes an ex-spouse upon divorce, ERISA-governed plans follow the designation on file with the plan administrator. The Supreme Court confirmed this in Egelhoff v. Egelhoff (2001) and Kennedy v. Plan Administrator (2009).

When no valid beneficiary designation exists, the asset typically passes to the account holder's estate and is distributed through probate under Montana's intestacy laws. This can result in delays, additional costs, and the assets going to someone other than the intended recipient. See who inherits with the Montana inheritance calculator.

Yes. Montana applies a per stirpes default for beneficiary designations.MCA § 72-2-716; § 72-2-813; § 72-2-814; § 25-13-608; §§ 72-6-201 to 72-6-228 (Multiple-Party Accounts); §§ 72-6-301 to 72-6-311 (Uniform TOD Security Registration Act); §§ 72-6-401 to 72-6-418 (Uniform Real Property Transfer on Death Act); §§ 72-2-817 to 72-2-833 (Uniform Disclaimer of Property Interests Act); Title 72 Ch. 26 (UTMA); In re Golz, 2015 MT 318Verified Jul 13, 2026 If a named beneficiary dies before the account holder, the deceased beneficiary's share passes to their descendants rather than to the remaining named beneficiaries.