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Montana Living Trust Form (Revocable)

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Montana Living Trust Form (Revocable)

Updated May 03, 2024

A Montana living trust is a legal document allowing a grantor to transfer their property and assets into a separate entity to be immediately transferred to their beneficiaries after their death. A living trust can be managed, amended, and revoked at any time by the grantor, who is able to also act as the trustee.

Requirements (5)

  1. Competent: The grantor must have the capacity to create a trust.
  2. Intent: The grantor must indicate an intention to create a trust.
  3. Definite Beneficiary: Unless it is a charitable trust or a trust for the care of an animal, the trust must have a beneficiary that can be ascertained.
  4. Trustee’s Duties: There must be duties that the trustee has to perform.
  5. Sole Trustee Cannot be the Sole Beneficiary: The same person cannot be the sole trustee and sole beneficiary.[1]

Laws

Amending/Revoking – Unless the terms of a trust specify that it is irrevocable, the grantor may amend or revoke the trust.[3]

Bond Requirement – If a bond is required under the terms of the trust or deemed necessary by a court to secure the performance of a trustee’s duties, then the trustee must furnish a bond.[4]

Certification of Trust – In lieu of providing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish a certification of trust stating the date of the trust, the names of the grantor and trustee, and other relevant information.[5]

Co-Trustees – Co-trustees may act by majority decision if they are unable to reach a unanimous decision.[6]

Contesting a Trust – An action contesting a trust must be commenced within 120 days of receiving notice from the trustee of the trust’s existence or within three years of the grantor’s death, whichever is earlier.[7]

Costs Related to the Trust – Only costs that are reasonable in relation to the trust property and the purposes of the trust may be incurred in its administration.[8]

Jurisdiction – A trust that was created in compliance with the laws of the jurisdiction where its instrument was executed is valid in Montana.[9]

Oral Trusts – There is no Montana state law allowing for the establishment of oral trusts.

Pet Trusts – A trust created to provide for the care of one or more animals alive during the grantor’s lifetime is valid. The trust terminates upon the death of the last surviving animal being cared for.[10]

Signing Requirements – A valid trust, unless created by operation of law, must be in writing and signed by either the grantor or the trustee, or by an authorized agent of the same.[11]

Spendthrift Provision – A spendthrift provision is only considered valid if it restrains both the voluntary and involuntary transfer of a beneficiary’s interest.[12]

Trustee’s Compensation – If the terms of the trust do not specify a trustee’s compensation, then the trustee is entitled to compensation that is reasonable given the circumstances.[13]

Trustee’s Duties – The trustee must expeditiously administer the trust in good faith, in the sole interests of the beneficiaries, and in accordance with its terms and purposes.[14]

Trustee’s Powers – Along with those powers granted them by the terms of the trust, the trustee has the power to collect, acquire, sell, exchange, or otherwise change the character of trust property.[15]

Sources

  1. § 72-38-402(1)
  2. Commissioner of Securities and Investments – Living Trusts
  3. § 72-38-602(1)
  4. § 72-38-702(1)
  5. § 72-38-1013(1)
  6. § 72-38-703(1)
  7. § 72-38-604(1)
  8. § 72-38-805
  9. § 72-38-403
  10. § 72-38-408(1)
  11. § 72-38-407
  12. § 72-38-502(1)
  13. § 72-38-708(1)
  14. § 72-38-801
  15. § 72-38-816