Inherited a House in Montana? Here’s How to Sell It.

Do you have to go through probate to sell an inherited house in Montana?

Usually the house has to clear probate (or a small-estate/affidavit shortcut, or a trust or transfer-on-death deed) before you can pass clean title to a buyer. The exact threshold and the shortcut available depend on Montana law and how the estate was set up, so confirm your path with the Montana probate court or an estate attorney before you list.

Will you owe capital gains tax when you sell?

Usually very little. An inherited home gets a stepped-up basis to its fair-market value on the date of death (IRC §1014), so if you sell near that value there is almost no taxable gain. This is federal and applies in Montana like everywhere else — one of the few rules that makes selling an inherited house simpler than people fear.

What does the house cost you while probate runs?

Every month the estate is open, the home keeps costing money: Montana property taxes (about 0.84%/yr on the value), insurance on a often-vacant house, utilities, and upkeep. Those carrying costs are the real bleed, and they land whether or not anyone is living there.

What an inherited Montana house nets after selling costs

Heirs tend to anchor on the list price, but the estate only banks what survives the costs. On the Montana median of about $529,000 (Redfin state market tracker, May 2026), a traditional sale gives up roughly $30,206 to agent commission at 5.71%, around $5,290 to seller closing costs, with no state transfer tax to subtract — about $35,496 in all, leaving roughly $493,504 before any mortgage balance or liens the estate inherited along with the deed. That after-cost figure, not the listing price, is the number to divide among heirs or weigh against a faster sale.

Carrying costs while the estate settles

Until the estate can pass clean title, the house bills whoever is minding it. Property tax in Montana runs about 0.84% of value a year — the #28 highest rate in the country — which is roughly $370 a month on a median-priced home, plus insurance on a house that may be sitting empty and every utility that keeps the pipes safe. And the clock does not stop once you are cleared to sell: the median Montana listing takes about 69 more days to go under contract (Redfin state market tracker, May 2026). How long the legal side takes varies by county and by how the estate was set up — the probate court or a Montana estate attorney can tell you which track yours is on.

If the estate is behind on property taxes

Estates sometimes inherit arrears along with the deed, and unpaid property taxes run on their own statutory clock in Montana. Different from mortgage foreclosure: after a property tax lien attaches, the owner (or occupant or any interested party) may redeem by paying the delinquent taxes, penalties, interest, and costs until the first working day in August 3 years after the tax lien attached (shortened to 2 years only for certain vacant subdivided lots with delinquent special-assessment liens). The period is defined by the statute's August cutoff, not a flat 36 months. (MCA §15-18-111) Those deadlines do not pause for estate paperwork — if tax notices are arriving at the house, get the county's payoff figure early and put the dates in front of the estate's attorney.