Inheritance Taxes
Inheritance Tax
Montana's inheritance tax was repealed by the passage of I-115 in November 2000. As a result, the inheritance tax will not apply to bequests made on or after January 1, 2001. Additionally, consent to transfer stocks, bonds or insurance proceeds is only required for deaths occurring before that date.
For questions regarding the inheritance tax prior to its repeal, please contact the department directly.
Estate Tax
Montana’s estate tax is equal to the maximum credit allowed against the federal estate tax (MCA 72-16-905). The Economic Growth and Tax Reconciliation Act (EGTRRA) of 2001 reduces the amount of the state death tax credit that may be taken against the federal estate tax. The EGTRRA reduces the credit by 25 percent for deaths occurring in 2002, 50 percent for deaths in 2003, 75 percent for deaths in 2004, and 100 percent for deaths occurring in 2005 and thereafter. Therefore, there is no Montana estate tax due for deaths occurring in 2005 and thereafter.
Per MCA 72-16-906, only estates that meet the federal estate tax filing requirement where the decedent passed away prior to January 1, 2005 must file with the department. Also, according to MCA 72-3-1006, only probate proceedings under this code requiring the filing of a Montana estate tax return require a certificate stating that any Montana estate tax due on the assets of the estate has been paid or that no tax is payable.
Therefore, if there is no state filing requirement under MCA 72-16-906 there is no certificate requirement under MCA 72-3-1006. If a certificate is required, it must be filed with the clerk of district court before final distribution to successors may be made and petitions may be granted.
The Application for Determination of Estate Tax (form INH-4) is used to request a certificate and is available in the Forms section of our website. Please contact the Department for other forms.
Inheritance and estate tax collections are deposited in the General Fund. (MCA 72-16-321,322)
For more information on estate planning, please see Montana State University Extension Services' list of publications under Estate Planning: 24 Topics You Must Know About.
