Tools for Heirs and Beneficiaries in Montana

Montana levies no estate or inheritance tax; only the federal estate tax applies above $15,000,000.

6 tools for Montana

Who Inherits Without a Will?

Without a will in Montana, a surviving spouse takes the entire estate when every child of either spouse is a child of both, and descendants divide what passes to them per capita with representation.

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How Much Are Estate & Inheritance Taxes?

Montana levies no estate or inheritance tax; only the federal estate tax applies above $15,000,000.

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What Taxes Apply to My Inheritance?

Montana imposes no inheritance or estate tax; probate assets arrive when the estate closes, 4 months to 6 months for a simple estate.

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How Does Step-Up in Basis Work?

Inherited assets in Montana take a basis reset to fair market value on the date of death, and the gain on a later sale faces the state's preferential capital gains rates.

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When Do I Have to Withdraw an Inherited IRA?

See which federal withdrawal rules apply to an inherited IRA, Roth IRA, or employer plan, the deadline year, and the missed-withdrawal tax.

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Do I Have to File Tax Returns for Someone Who Died?

Montana requires a final state income tax return for the decedent alongside the federal Form 1040; a federal estate tax return (Form 706) is required only for estates above $15,000,000.

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No. Montana imposes no state estate tax and no inheritance tax. Only the federal estate tax applies, on an estate above $15,000,000, an exemption the One Big Beautiful Bill Act (P.L. 119-21 §70106) set permanently from 2026 and indexes for inflation.

Not on the inheritance itself: Montana taxes neither the estate nor the beneficiary, and the IRS does not treat an inheritance as income. What an heir can owe is income tax on withdrawals from an inherited retirement account, and capital gains on a later sale of inherited property, where the basis is reset to fair market value on the date of death and the gain faces the state's preferential capital gains rates.

No. The IRS does not treat inherited money, real estate or personal items as income, so a beneficiary in Montana does not report them on a federal return when received. Two exceptions: an inherited retirement account (a 401(k) or a traditional IRA) is taxed as ordinary income as it is withdrawn, and earnings after the date of death are taxable. Inherited property takes a stepped-up basis, its value on the date of death, for any later capital gain.

When someone dies, the cost basis of the property they leave is reset to its fair market value on the date of death under IRC § 1014. A later sale is taxed on the gain above that stepped-up basis, not above what the original owner paid, so the appreciation of the owner's lifetime is never taxed. The rule is federal and applies in Montana as in every state.

Montana intestacy law decides. Montana follows separate property rules: the surviving spouse's share depends on whether children survive and whose children they are. The estate passes to the closest surviving relatives, in most cases the spouse and children first, then in order: Parents; Descendants of your parents; Grandparents and their descendants; Closest degree of kinship; The state of Montana.

Tools for Heirs and Beneficiaries in Montana

Estate taxes are paid by the estate before anything is distributed; inheritance taxes are paid by the person who receives the property. In 2026 the federal estate tax reaches only estates above $15 million per person, and there is no federal inheritance tax. 12 states plus the District of Columbia levy their own estate tax at lower thresholds, and 5 states levy an inheritance tax whose rate depends on the beneficiary's relationship to the person who died.

Beneficiaries in Montana owe no state tax on what they receive; inherited assets take a basis reset to fair market value on the date of death, and the gain on a later sale faces the state's preferential capital gains rates. Probate assets arrive when the estate closes: a simple estate closes in 4 months to 6 months.

SimplyTrust Editorial·Updated September 20, 2026

Legal Sources

Data sourced from Montana statutes and official state code. How we research.