What to Do When You Inherit a House in Montana
Inheriting a house is often more complicated than people expect. The grief of losing someone is hard enough — but then you’re suddenly responsible for a property you may not have wanted, may not be able to afford to maintain, and may have strong feelings about.
If you’ve inherited a house in Montana, here’s a practical breakdown of what you’re dealing with and what your options are.
Step 1: Understand the Probate Situation
In Montana, most inherited real estate goes through probate — the legal process by which a deceased person’s estate is administered. Whether you need to go through full probate depends on:
- Whether the deceased had a will
- Whether the property was held in a trust or in joint tenancy with right of survivorship
- The total value of the estate
Montana has a simplified probate process for smaller estates. For properties held in a revocable living trust, probate can often be skipped entirely.
Before you do anything else, consult with a Montana probate attorney (most offer free initial consultations). You need to know whether you legally own the property before you can sell it.
Step 2: Figure Out What the Property Is Worth — and What It Needs
Once you understand the ownership situation, you need a clear picture of the property’s condition and value.
This matters for a few reasons:
- Property taxes are due regardless of whether you use the home
- Insurance lapses when a home is vacant — and if someone gets hurt on the property, you can be liable
- Deferred maintenance compounds fast on Montana properties, especially through winter
Get the utilities on, do a basic walkthrough, and make an honest assessment. Is it move-in ready? Does it need cosmetic work? Major systems? Foundation or structural issues?
Step 3: Know Your Options
You have four real options when you inherit a property in Montana:
1. Move In
If the property is in livable condition and the location works for your life, keeping it is a legitimate choice. Just factor in the true carrying costs: property taxes in Yellowstone County average around $1,500–$3,000/year for a typical single-family home, plus insurance, maintenance, and utilities.
2. Rent It Out
Rental demand in Billings is steady. If the property is in decent shape, renting it is a reasonable income-generating option. Be aware that becoming a landlord comes with responsibilities — and that a property in poor condition will cost you more in repairs and vacancies than it generates in rent.
3. List It on the MLS
If the property is in good shape and you can afford to wait 60–90 days, listing with an agent may get you top dollar. You’ll pay 5–6% in commissions and need to deal with the listing process, but for a turnkey property it often makes sense.
4. Sell to a Cash Buyer
If the property needs significant work, you need to close quickly, or you simply don’t want to deal with the listing process during an already difficult time, selling to a local cash buyer is worth a serious look.
There are no repairs, no agent commissions, and you can close in 7–14 days. For inherited properties that have been vacant or deferred on maintenance, this is often the most practical path.
The Tax Angle: Stepped-Up Basis
One important thing to know: inherited properties in Montana benefit from a stepped-up cost basis. This means your cost basis is the fair market value of the property at the date of death — not what the original owner paid for it decades ago.
In practical terms, this means if you sell the property reasonably soon after inheriting it, you may owe little or no capital gains tax, even if the property has appreciated significantly over the years.
Talk to a CPA before you sell to make sure you understand your tax position.
We Work With Inherited Properties Often
Inherited homes are one of the most common situations we deal with. We understand that the property often has sentimental value, the legal situation can be complicated, and you may be managing this from out of state.
We work around the probate timeline, we’re patient, and we never pressure you to move faster than you’re ready to. If the property is in Billings, Laurel, Lockwood, or anywhere in Yellowstone County, call us and we’ll have an honest conversation.