Extension Office: Accessing a Deceased Person's Financial Accounts

When a Montana resident dies, state law provides a process for deciding who is legally entitled to inherit financial accounts the deceased had with banks, credit unions or other entities such as brokerage firms. Montana property and contract laws, and provisions under the Montana Uniform Probate Code, dictate who becomes the legal successor(s) of certain accounts.

“For example, when two people have a savings account in joint tenancy with right of survivorship, the surviving joint tenant becomes the legal successor. If an owner placed a payable on death designation (POD) on a savings account naming a certain individual, the named person is the one who inherits the balance in the account,” says Kaleena Miller, MSU Extension Madison-Jefferson County Agent.

The Montana legislature has provided a special procedure for the deceased who have smaller estates. “If the entire estate, minus liens and encumbrances, is valued at $50,000 or less, probate or appointment of a personal representative is not required,” says Marsha Goetting, MSU Extension Family Economics Specialist.

“The financial entity can release the deceased’s funds to a successor who presents proof of identification, the deceased’s certified death certificate, and an Affidavit for Collection of Personal Property of the Decedent,” continued Goetting. The Affidavit must include certain statements. For example, it must say that 30 days have elapsed since the death of the decedent. It must say that no application or petition for the appointment of a personal representative is pending or granted in any jurisdiction. It must say that the claiming affiant (the person signing the affidavit) is entitled to payment of any sums of money the decedent had in the financial institution.

The affiant is the successor either because of being named in the decedent’s written will to receive the funds in the account or if the decedent had no written will, according to Montana law. The affidavit must be signed by the person claiming to be the successor and the signature must be notarized by a notary public.

“If the deceased listed more than one POD beneficiary on the account, the financial institution splits the money equally among the beneficiaries,” said Miller. For example, Jim had a $50,000 share certificate at his local credit union. The account was in his name only, with his five children listed as POD beneficiaries. Upon his death, each child received one-fifth of the $50,000, or $10,000 apiece.

“The beneficiary on a POD account receives the funds regardless of any provisions the decedent may have had in a written will,” said Miller. For example, Bernie has a large savings account, with her two children listed as the POD beneficiaries. Bernie states in her will that she bequeaths all her real and personal property to the Montana 4-H Foundation. Bernie will need to remove her children as the POD designees if she wants her written will to control the distribution of her savings account. “Bernie could also change the POD designation from the names of her children to the Montana 4-H Foundation,” added Goetting.

The financial institution does not have to verify the information contained in the affidavit other than assuring that 30 days must have elapsed between the date of death of the account holder and the signing of the affidavit by the successor. Financial institutions paying, delivering, or transferring, the deceased’s property under the affidavit are discharged and released of liability to the same extent as if they had dealt with the personal representative of the decedent.

For more information, ask for the MSU Extension MontGuide Accessing a Deceased Person’s Financial Accounts by calling 406-287-3282 or download at https://bit.ly/33J64r4. An affidavit is also available at https://bit.ly/3qx6M3L.