Montana Transfer on Death Deed

Introduction

Key Things to Know

1. 1

   In Montana a transfer on death deed is a deed you record while alive that names a beneficiary to receive your real property automatically at your death, without probate. Montana authorizes it under the Uniform Real Property Transfer on Death Act (MCA Title 72, chapter 6, part 4).

2. 2

   During your life the deed has no effect on your ownership. You keep full control and can sell, mortgage, or revoke it, and the beneficiary has no interest until you die (MCA 72-6-409).

3. 3

   The deed must contain the formalities of a properly recordable deed, meaning it is signed and acknowledged before a notary. Montana does not require witnesses for the deed (MCA 72-6-408).

4. 4

   The deed must state that the transfer to the designated beneficiary is to occur at your death (MCA 72-6-408).

5. 5

   The deed must be recorded before your death in the office of the county clerk and recorder of the county where the property is located (MCA 72-6-408). There is no fixed day deadline, but recording before death is required.

6. 6

   The deed is revocable only by a recorded instrument, a later transfer on death deed, an instrument of revocation, or an inter vivos deed, acknowledged and recorded before death. It cannot be revoked by an act on the deed, and a will cannot revoke it (MCA 72-6-410).

7. 7

   The deed avoids probate for the property, but the beneficiary takes it subject to any mortgages and liens against it at your death.

Montana Requirements for Transfer on Death Deed

• Meet the Montana TOD Deed Requirements

  Montana authorizes the deed under the Uniform Real Property Transfer on Death Act (MCA Title 72, chapter 6, part 4). The deed must name a beneficiary and state that the transfer to the beneficiary is to occur at the death of the transferor (MCA 72-6-408).

• Legal Description and Parcel Number

  The full legal description of the property from the current recorded deed, plus the street address and the geocode or parcel number. A street address alone is not enough to record the deed with the county clerk and recorder.

• Name the Beneficiary and an Alternate

  The full legal name of the beneficiary who will receive the property at the transferor death, and an alternate beneficiary if the first does not survive. Naming a backup keeps the property out of probate if the first beneficiary dies first.

• State That the Transfer Occurs at Death

  The deed must state that the transfer to the designated beneficiary is to occur at the death of the transferor (MCA 72-6-408). Without that statement the document does not work as a transfer on death deed.

• Notarize the Signature; No Witnesses

  The deed must have the formalities of a recordable deed, so the transferor must sign it and have the signature acknowledged before a notary. Montana does not require witnesses for the deed (MCA 72-6-408).

• Record With the County Clerk Before Death

  The deed must be recorded before the transferor death in the office of the county clerk and recorder of the county where the property is located (MCA 72-6-408). There is no fixed day deadline, so record promptly after signing.

• Revocation Only by Recorded Instrument

  The deed is revocable only by a recorded later transfer on death deed, an instrument of revocation, or an inter vivos deed, acknowledged and recorded before death (MCA 72-6-410). It cannot be revoked by an act on the deed, and a will cannot revoke it.

• Property Passes Subject to Claims

  The deed avoids probate for the property, but the beneficiary takes it subject to any mortgages and liens on it at the transferor death. A mortgage, tax lien, or judgment on the property stays with the property.