Montana Estate and Inheritance Tax

Montana no longer collects estate or inheritance taxes. However, fiduciaries of estates may need to file a Montana income tax return for an estate.

An inheritance tax is a tax paid by the beneficiary or heir on the value of an inheritance.

Montana's inheritance tax was repealed in November 2000 and does not apply to any death after January 1, 2001.

An estate tax is a tax paid by the estate on the gross value of an estate transferred at death.

Montana does not have an estate tax for deaths after 2004. If the decedent died before January 1, 2005, their estate may still have a filing requirement.

If a probate proceeding is for a decedent who died prior to January 1, 2001 or who died prior to January 1, 2005 and a federal Form 706, U.S. Estate Tax Return was filed, it may also require a certificate stating the Montana estate or inheritance taxes have been paid or no taxes are owed.

You must file the certificate with the district court clerk before making the final distribution.

Use the Application for Determination of Estate Tax (Form INH-4) to request a certificate if the date of death is after December 31, 2000, but before January 1, 2005.

If the date of death occurred before January 1, 2001, contact us for a copy of the Form INH-2.

Please Note: If the date of death is after December 31, 2004, there is no requirement for a certificate or consent from the department to transfer stocks, bonds, or other securities.

The estate of a decedent may have an income tax filing requirement. The fiduciary of a decedent's estate must file must file a Montana Income Tax Return for Estates and Trusts (Form FID-3) if they filed federal Form 1041, U.S. Income Tax Return for Estates and Trusts and the decedent owned Montana property at the time of death or has income from Montana sources.

For more information on estate planning, please see Montana State University's Estate Planning Publications.