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Montana's inheritance tax was repealed in November 2000 and does not apply to any death after January 1, 2001.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 2005. If the decedent died before January 1, 2005, their estate will still have a filing requirement.
The estate of a decedent may have an income tax filing requirement. The fiduciary of an estate must file a Montana Income Tax Return for Estates and Trusts (Form FID-3) if all of the following apply:
Please Note: If a probate proceeding requires a Montana estate tax return, it will also require a certificate stating the 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.
For more information on estate planning, please see Montana State University's Estate Planning Publications.