What to Do When You Inherit a House in Montana: A Complete Guide for 2026

Inheriting a house in Montana can feel like both a blessing and a burden. Whether it's your childhood home in Billings, a family cabin near Flathead Lake, or a ranch in rural Montana, the emotions are real—and so are the decisions you need to make quickly. If you're overwhelmed by probate, taxes, family disagreements, or simply don't know where to start, this guide will walk you through everything you need to know about selling or keeping an inherited property in Montana.

Understanding Montana's Inheritance Process

When you inherit property in Montana, you're entering a legal process that can take anywhere from 6 months to over a year. Here's what you need to know upfront:

The Probate Requirement: Most inherited properties in Montana must go through probate—a court-supervised process that validates the will, pays debts, and transfers ownership to heirs. Montana follows the Uniform Probate Code, which provides structure but doesn't eliminate delays.

Small Estate Exception: If the entire estate is worth less than $50,000, you may qualify for simplified probate or skip it altogether. However, most Montana homes exceed this threshold given current property values.

Timeline Reality Check: Montana law requires estates to remain open for at least 6 months to give creditors time to file claims. Complex estates with multiple properties, family disputes, or out-of-state heirs can stretch this to 12 months or longer.

The 120-Hour Rule: Montana requires that heirs survive the deceased by at least 120 hours (5 days) to inherit. This prevents complicated scenarios where multiple family members die close together.

Your First Steps After Inheriting Montana Property

1. Secure the Property Immediately

Change the locks, ensure insurance is current, and winterize if needed (Montana winters are no joke). Empty homes are targets for vandalism, theft, and weather damage. Contact the homeowner's insurance company to update the policy—some require a different type of coverage for vacant inherited properties.

2. Initiate the Probate Process

File the will (if one exists) and death certificate with the district court in the county where the deceased lived. The court will appoint a personal representative (executor) to manage the estate. This person has legal authority to handle property matters, pay debts, and eventually distribute assets.

3. Order a Professional Appraisal

This is critical for multiple reasons: establishing the property's "stepped-up basis" for tax purposes, resolving disputes among multiple heirs, and making informed decisions about whether to keep or sell. Montana's rural properties can be especially tricky to value due to limited comparable sales.

4. Address Outstanding Debts and Liens

Search title records for any mortgages, tax liens, or judgments against the property. Montana law requires these to be paid before the property can be sold or transferred. If the previous owner was behind on property taxes (Montana's average effective rate is 0.68%), you'll need to catch up on those payments.

The Tax Advantages of Inherited Property in Montana

Here's some genuinely good news: Montana has tax advantages for inherited property that can save you thousands of dollars.

No Montana Inheritance Tax: Montana abolished its inheritance tax in 2001. You don't owe state taxes simply for inheriting property.

No Montana Estate Tax: Montana doesn't impose a state estate tax. Federal estate tax only applies if the estate exceeds $13.99 million (as of 2025), which affects very few Montana estates.

The "Stepped-Up Basis" Benefit: This is huge. When you inherit property, its tax basis "steps up" to the fair market value on the date of death—not the original purchase price.

Real Example: Your mother bought a Bozeman property for $100,000 in 1990. At her death in 2026, it's worth $900,000. If you sell it immediately for $900,000, you owe ZERO capital gains tax because your basis is $900,000 (the stepped-up value), not $100,000.

Capital Gains Tax: If you hold the property and it appreciates further, you'll owe capital gains tax on gains above the stepped-up basis. Montana taxes capital gains as ordinary income (up to 4.9%), and federal capital gains rates apply (0%, 15%, or 20% depending on your income).

Smart Tax Strategy: If you plan to sell, doing so quickly after inheritance minimizes capital gains exposure. If you wait years, you'll pay taxes on the appreciation that occurred while you owned it.

When Multiple Heirs Inherit: Navigating Family Dynamics

This is where inherited properties often get complicated. When siblings or multiple relatives inherit Montana property together, disagreements are common.

Common Scenarios:

• One sibling wants to keep the family home; others want to sell

• Disagreements about listing price or whether to make repairs

• Out-of-state heirs who can't manage a Montana property

• Unequal emotional attachments to the property

• Financial pressure on some heirs who need their share immediately

Do All Heirs Have to Agree to Sell in Montana?

Not exactly, but it's complicated. If all heirs own the property as "tenants in common" (the typical arrangement), any heir can force a sale through a legal process called a "partition action." However, this should be a last resort as it's expensive, time-consuming, and damages family relationships.

The Partition Process: Any co-owner can file a partition action in Montana court. The court will either physically divide the property (rare for homes) or order it sold with proceeds divided among owners. Legal fees and court costs reduce everyone's share significantly.

Better Solutions:

1. Buyout: One heir purchases the others' shares at agreed-upon fair market value

2. Mediation: A neutral third party helps negotiate a solution

3. Fast Cash Sale: Sell to a cash buyer quickly, divide proceeds, everyone moves on

The Cost of Waiting: While heirs argue, the property accumulates costs—property taxes, insurance, utilities, maintenance, and Montana's harsh winters can damage vacant homes. These costs eat into everyone's inheritance.

Your Four Main Options for Inherited Montana Property

Option 1: Keep It and Move In

Best For: Heirs who want to live in Montana, have emotional attachment, and can afford ongoing costs

Considerations:

• Can you afford Montana property taxes and maintenance?

• Do you want to relocate to Montana?

• Will this be your primary residence for at least 2 years? (Important for future capital gains exemptions)

• What about the mortgage (if any)?

Tax Benefit: If you move in and make it your primary residence for at least 2 out of 5 years before selling, you can exclude up to $250,000 ($500,000 for married couples) in capital gains from federal taxes.

Option 2: Keep It as a Rental Property

Best For: Heirs interested in real estate investment and passive income

Pros:

• Monthly rental income (Montana's rental market is strong in cities like Bozeman, Missoula, Billings)

• Property appreciation over time

• Tax deductions for maintenance, property management, and depreciation

Cons:

• Becoming a landlord is real work—tenant issues, repairs, vacancies

• Out-of-state landlord challenges (Montana tenants with a distant landlord)

• Property management companies charge 8-12% of monthly rent

• You're still responsible for mortgage payments (if any)

Montana-Specific Challenge: Rural properties may be harder to rent, and Montana winters create maintenance challenges that absentee landlords struggle to handle.

Option 3: Sell Through a Traditional Real Estate Agent

Best For: Move-in-ready homes in desirable Montana locations with plenty of time

Timeline: Typically 60-90 days (or longer for rural properties)

Costs:

• 6% realtor commissions (split between listing and buyer's agent)

• Closing costs (1-3%)

• Repairs and staging (often $10,000-$30,000+)

• Ongoing property costs while listed

Montana Market Reality: Homes in Bozeman, Missoula, and other growth areas may sell quickly. Rural properties, fixer-uppers, or homes with access issues can sit on the market for months. Many inherited Montana properties don't qualify for conventional financing due to condition or location issues.

The Numbers: On a $500,000 inherited home, you'll pay $30,000 in agent commissions plus repairs and staging. If the home needs $20,000 in repairs and takes 90 days to sell, your net proceeds drop significantly—and you're gambling that buyers will pay full market value.

Option 4: Sell Fast to a Cash Buyer

Best For: Properties in any condition, heirs who need certainty, situations with family disagreements or time pressure

Timeline: 7-14 days (or on your schedule)

Benefits:

• No repairs, cleaning, or staging required

• No realtor commissions (save 6%)

• Close on your timeline—fast or flexible

• Cash certainty (no buyer financing falling through)

• We handle probate complexity and title issues

• Perfect for multiple heirs who want a quick, clean resolution

Common Misconceptions: Many people assume cash buyers lowball offers. In reality, when you factor in no repairs, no commissions, no carrying costs, and no risk of deals falling through, cash offers often net MORE money than traditional sales for inherited properties needing work.

Real Comparison:

Traditional Sale:

• List for $400,000

• Repairs: $25,000

• Commission: $24,000

• Carrying costs (90 days): $3,000

• Deal falls through, relist for $380,000

• Net after fees: $325,000

• Timeline: 5+ months of stress

Cash Sale:

• Offer: $350,000

• Repairs: $0

• Commission: $0

• Carrying costs: $0

• Net: $350,000

• Timeline: 10 days, done

In this scenario, the cash offer nets you $25,000 MORE than the traditional sale—plus 4.5 months of your life back.

Special Challenges with Montana Inherited Properties

Rural Property Issues: Montana has more rural land than most states. Rural inherited properties face unique challenges:

• Limited buyer pool

• Financing difficulties (many require cash buyers)

• Access issues (private roads, easements)

• Off-grid utilities (well, septic, propane)

• Distance from towns impacts value significantly

Out-of-State Heirs: If you live outside Montana and inherit property here, you face:

• Difficulty managing maintenance and showings

• Montana probate requirements even if you live elsewhere

• Winterization and weather damage risks

• Property tax and insurance bills arriving at your out-of-state address

Deferred Maintenance: Many inherited homes haven't been updated in decades. The previous owner may have been elderly, ill, or financially stressed. Common issues include:

• Outdated electrical and plumbing

• Roof damage from Montana winters

• Foundation issues

• Asbestos or lead paint (in older homes)

• Hoarding situations requiring expensive cleanouts

How Probate Affects Your Sale Timeline

You generally cannot sell an inherited Montana property until:

1. The court appoints a personal representative

2. The personal representative receives "letters of authority"

3. The 6-month creditor period expires (in most cases)

4. All heirs agree to the sale (or court orders it)

Exception: In limited cases, Montana courts may authorize pre-probate sales if the estate needs immediate funds to pay debts or taxes. The personal representative must petition the court for permission.

Probate Delays Come From:

• Missing paperwork or unclear will language

• Creditor claims and disputes

• Family disagreements about property distribution

• Out-of-state heirs who are hard to locate

• Complex estates with multiple properties

How Cash Buyers Help: Experienced cash buyers work through probate regularly. We understand Montana's probate requirements, can close quickly once authority is granted, and often help expedite the process by providing clear purchase agreements that courts readily approve.

The Emotional Side of Inherited Property

Let's be honest: inheriting property after losing a loved one is emotionally complex. That house holds memories—childhood holidays, family gatherings, your parent's entire life.

It's Okay to Sell: Keeping a property out of guilt or sentiment when it doesn't fit your life creates ongoing stress and financial burden. Your loved one would want you to make the decision that's best for you and your family.

Family Harmony Matters: Money disputes destroy relationships. If keeping the property causes ongoing arguments with siblings or family members, selling and dividing proceeds cleanly preserves what really matters—your family bonds.

Grief Takes Time: Don't rush major decisions in the immediate aftermath of loss. However, don't wait so long that the property deteriorates or becomes a financial drain. Finding the right balance is personal to each situation.

Common Mistakes to Avoid

1. Waiting Too Long: Every month you delay, the property costs you money in taxes, insurance, utilities, and maintenance. Montana winters can cause serious damage to vacant homes.

2. Making Repairs Before Probate Authority: Don't invest money in repairs until you're legally authorized to sell. Reimbursement disputes among heirs are common.

3. Overpricing Rural Properties: Rural Montana real estate is hyper-local. Don't assume your property is worth what similar homes sold for in Bozeman or Missoula. Distance, access, and utilities matter enormously.

4. Ignoring Title Issues: Outstanding liens, unclear ownership, or missing heirs can derail sales. Address title issues early with a Montana real estate attorney.

5. Assuming You Must Use an Agent: For many inherited properties—especially those needing repairs or in rural areas—cash buyers offer better net proceeds with far less hassle.

Montana Resources for Inherited Property

• Montana Legal Services Association: Free legal help for qualifying low-income heirs (1-800-666-6899)

• County Clerk & Recorder's Office: Property records, title information

• Montana State Bar Association: Lawyer referral for probate and real estate attorneys

• Local Tax Assessor: Property tax information and payment status

Make Your Decision: What's Right for You?

Ask yourself these questions:

1. Do you want to own property in Montana long-term?

   • Yes → Consider keeping it

   • No → Sell

2. Can you afford ongoing costs while deciding?

   • Yes → Take your time

   • No → Sell quickly

3. Is the property in good condition?

   • Yes → Traditional sale might maximize value

   • No → Cash sale likely nets more after repair costs

4. Are multiple heirs in agreement?

   • Yes → More options available

   • No → Fast cash sale creates clean resolution

5. Do you need money soon?

   • Yes → Cash sale (7-14 days)

   • No → You have flexibility

Sell Your Inherited Montana House Fast—With Dignity and Fairness

At We Buy Big Sky Homes, we specialize in helping Montana families navigate inherited property sales with compassion and expertise. We understand you're dealing with loss, family dynamics, and complex decisions during an already difficult time.

Why Montana Families Choose Us:

✓ Fair Cash Offers Within 24 Hours: Know exactly what you'll net, with no surprises

✓ Close in 7-14 Days (or on your timeline): We work around your schedule, not ours

✓ Buy Any Condition: No repairs, no cleaning, no staging—we buy as-is

✓ No Realtor Commissions: Keep an extra 6% in your pocket

✓ Probate Experience: We navigate Montana probate requirements daily and work directly with personal representatives

✓ Family-Owned & Operated: We're Montanans helping Montanans, not out-of-state investors

✓ Multiple Heir Coordination: We help families reach agreement with fair, transparent offers

✓ Respectful Service: We treat your family's property—and memories—with the dignity they deserve

We've Helped Hundreds of Montana Families in Billings, Missoula, Great Falls, Bozeman, Helena, Kalispell, Butte, and across the state turn inherited properties into clean, fair inheritances without the stress of traditional sales.

Your Next Steps:

1. Get Your Free Cash Offer: Fill out our simple form or call us directly

2. Review Your Options: We'll explain your net proceeds with zero pressure

3. Choose Your Timeline: Close fast or take your time—it's your choice

4. Walk Away with Cash: Simple, straightforward, fair

Don't let an inherited property become a burden. Let us help you honor your loved one's memory while moving forward with your life.

Ready to get your fair cash offer on your inherited Montana property? Contact We Buy Big Sky Homes today. No obligation, no pressure—just honest answers and real solutions during a difficult time.

Call us now or fill out our online form to get started now.

Disclaimer: This article provides general information about inherited property in Montana and is not legal or tax advice. Every situation is unique. Consult with a Montana probate attorney, real estate attorney, or tax professional for guidance specific to your circumstances.