Montana · MCA 72-6-401–72-6-418Montana transfer on death deeds: the rules and what they mean for a sale

Montana adopted the Uniform Real Property Transfer on Death Act, so an individual may transfer real property to one or more beneficiaries effective at death by a transfer on death deed (MCA 72-6-404). The deed must have the formalities of a recordable deed, state that the transfer happens at the owner's death and be recorded before death with the county clerk and recorder where the property is (MCA 72-6-408); no notice, delivery, acceptance or consideration is needed (72-6-409). It's revocable even if it says otherwise, but only by a later recorded instrument – a new transfer on death deed, an instrument of revocation, or an inter vivos deed that expressly revokes it – acknowledged after the deed and recorded before death (72-6-405, 72-6-410). During the owner's life it doesn't affect the right to transfer or encumber the property and gives the beneficiary no interest (72-6-411), so the owner can sell normally. At death the property passes to the beneficiaries who survive, subject to all conveyances, encumbrances, contracts, mortgages and liens, without covenant or warranty of title, and the owner's property insurance is extended to the beneficiary for up to 45 days (72-6-412). Beneficiaries are liable for allowed estate claims and statutory allowances as provided in 72-6-112 (72-6-414). Beneficiary deeds recorded before October 1, 2019 under the earlier law are treated as transfer on death deeds (72-6-417).