How to Transfer a Bank Account After Death in Montana

The first week after a loved one dies is the wrong time to learn that their checking account is frozen and you have no legal authority to touch it. Yet that's exactly what happens when families don't know how Montana's rules work. The good news: most bank accounts in Montana can be transferred or closed without going near a probate court — if you know which path applies to the account you're dealing with.

This guide walks through every scenario: POD accounts, joint accounts, sole accounts, and the edge cases nobody warns you about.

Start Here: Three Types of Accounts, Three Different Processes

Montana treats bank accounts after death differently depending on how ownership and beneficiary designations were set up. The type of account determines whether you need a death certificate alone, an affidavit, or a full court proceeding.

Payable-on-death (POD) accounts are the simplest. The account owner added a named beneficiary during their lifetime. At death, the account belongs entirely to that beneficiary — not the estate, not the heirs. The bank owes the money to whoever is named on the account, period.

Joint tenancy accounts with right of survivorship work similarly. If your parent held a checking account jointly with you, the entire balance becomes yours at their death. The deceased owner's share evaporates; the survivor owns everything.

Solely owned accounts with no POD designation are the problem accounts. These become estate property. Whether they require probate depends on the estate's total value and how quickly you need access.

Payable-on-Death Accounts: What to Bring to the Bank

If the deceased named you as a POD beneficiary on a Montana bank account, the transfer process is straightforward. POD accounts are non-probate assets under Montana law, meaning they bypass the estate entirely. No court involvement, no waiting for a personal representative to be appointed.

What you need to bring to the bank:

• A certified copy of the death certificate
• Your government-issued photo ID
• The account number (or enough identifying information for the bank to locate the account)

The bank will verify your identity against the beneficiary designation on file and release the funds. Some banks require you to complete their internal paperwork, but they cannot require probate for a properly designated POD account.

One serious caveat: Montana's expanded Medicaid estate recovery law (MCA 53-6-167) allows the Montana Department of Public Health and Human Services to pursue recovery from POD accounts if the decedent received Medicaid benefits. This applies even though the account technically bypasses probate. If your loved one was on Medicaid — particularly for long-term care — do not distribute POD account funds until you've confirmed there are no pending recovery claims. Distributing assets subject to a valid Medicaid lien can expose the beneficiary to personal liability.

Death certificates in Montana cost $16.00 each from the Department of Public Health and Human Services. Order at least 6 to 10 copies upfront. You'll need them for banks, investment accounts, real estate transfers, and government agencies — running out and reordering adds weeks.

Joint Bank Accounts: The Survivor's Rights

If the account was held as joint tenancy with right of survivorship, the surviving account holder becomes the sole owner at the moment of death. No action is legally required for ownership to transfer — it happens automatically.

That said, you'll still need to notify the bank and have the deceased's name removed from the account. Bring:

• A certified death certificate
• Your ID
• Any joint account documentation you have (optional, but helpful)

The bank will update the account to reflect your sole ownership. You can continue using the account normally from that point. If you'd prefer to close the account and open a new one, that's also straightforward once sole ownership is confirmed.

Note that the automatic transfer applies specifically to accounts with right of survivorship language. Tenancy in common accounts — where each owner holds a distinct share — do not work this way. The deceased's share goes to the estate, not to the surviving co-owner. If you're unsure which type of joint account applies, ask the bank for a copy of the original account agreement.

Solely Owned Accounts: The Small Estate Affidavit Route

When a bank account belongs solely to the deceased with no POD designation, it becomes part of the probate estate. But that doesn't automatically mean you need a court proceeding.

Montana's small estate affidavit procedure under MCA 72-3-1101 allows heirs to claim personal property — including bank accounts — from estates valued under $100,000 without opening a formal probate case. This is the most practical option for most families dealing with modest accounts.

The requirements:

• The estate's total personal property value must be under $100,000
• You must wait at least 30 days after the date of death before presenting the affidavit
• The affiant (the person signing) must swear that no application for a personal representative is pending or has been granted
• The affidavit must be notarized

When you present a valid notarized affidavit along with a certified death certificate, banks are legally required to pay. This isn't a courtesy — it's a statutory obligation. If the bank pushes back, cite MCA 72-3-1101 and escalate to a branch manager or the bank's estate department.

The 30-day waiting period is firm. Banks cannot accept the affidavit before that window closes, and presenting one early will be rejected.

If the estate exceeds $100,000 in personal property, or if there are disputes among heirs, formal probate through the Montana district court is required. The personal representative appointed by the court will have legal authority to close or transfer all accounts in the estate.

Handling a Montana estate involves more than just the bank accounts. If you're working through the full process — death certificates, real estate, vehicles, creditor notices, and the Montana probate timeline — the When Someone Dies in Montana — Estate Settlement Guide covers every step in order, with the forms and checklists you need.

Statutory Allowances: Why Family Members May Have Priority

Before any creditor touches estate assets — including money sitting in a sole bank account that goes through probate — Montana law carves out three protections for the surviving spouse and minor children:

• Homestead allowance: $22,500
• Family allowance: Up to $27,000 (to cover living expenses during administration)
• Exempt property: $15,000 in household and personal items

These allowances take priority over unsecured creditor claims. If you're a surviving spouse or dependent navigating estate accounts, understand that these protections exist before you agree to anything with creditors or banks.

How to Close a Bank Account After Death in Montana

Closing a deceased person's account — as opposed to transferring funds to yourself — follows the same process:

1. Confirm which type of account it is (POD, joint, or sole)
2. Gather a certified death certificate and your ID
3. For POD accounts: present both at the bank and request the account be closed and funds disbursed
4. For sole accounts below $100,000: wait 30 days, then present the notarized small estate affidavit and death certificate
5. For sole accounts above $100,000: the appointed personal representative handles closure after probate is opened

If there are recurring automatic payments or direct deposits tied to the account, notify the bank immediately to stop them. Social Security payments deposited after the month of death must be returned — the Social Security Administration will issue a request, and banks are required to comply. Spending SSA funds deposited after death creates a repayment obligation.

Common Mistakes That Delay Everything

Ordering too few death certificates. Each institution wants its own certified copy. Order more than you think you need on the first request from DPHHS.

Accessing accounts before you have authority. Even if you know the passwords, using online banking to transfer funds before you have legal standing can create liability. Follow the proper process.

Ignoring Medicaid recovery risk on POD accounts. Check the decedent's Medicaid history before distributing any POD funds. The state has recourse even on accounts that bypassed probate.

Missing the 30-day window on affidavits. The wait is a legal requirement, not a suggestion. Plan around it.

The account transfers are one piece of a longer process. If you need a complete, jurisdiction-specific roadmap for settling a Montana estate — from the first 48 hours through final distribution — get the complete toolkit. It's built for executors and surviving family members handling a real Montana estate, not a generic checklist.

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