Establish a revocable living trust: By creating a revocable living trust, you can transfer ownership of your assets to the trust while still retaining control of it. Upon death, the assets are distributed according to the trust’s terms, bypassing the probate process. This also provides privacy, as trusts are not part of public records like probate proceedings. While setting up a trust involves initial costs, often ranging from $1,000 to $3,000, this upfront investment can lead to substantial savings by eliminating probate fees.
Joint ownership with right of survivorship: This strategy applies to properties like real estate, bank accounts and vehicles. In Montana, joint ownership can help avoid probate for jointly held assets, transferring them directly to the surviving co-owner.
Designate beneficiaries on accounts: Many financial accounts, such as life insurance policies and retirement plans allow your assets to transfer directly to your chosen beneficiaries without going through probate.
Utilize transfer-on-death deeds: Montana allows the use of transfer-on-death (TOD) deeds for real estate to designate a beneficiary to inherit your property upon your death. This deed does not affect your ownership rights and canchanged at any time.
Make lifetime gifts: By gifting assets during your lifetime, you reduce the size of your estate and potentially avoid probate for those assets. You can take advantage of the gift tax limit and lifetime gift tax exemption to give money up to a limit without tax consequences.