Copy of 6 Reasons to Retire in Montana

Copy of 6 Reasons to Retire in Montana

March 14, 2022

Tanko Law Montana

As a caring parent, you have probably made an estate plan and allocated your assets to your children. However, you might be a bit uncertain whether your son or daughter married the right person and if what you leave them with will someday be given to their ex-spouse. Each state in the US is different, but when assets are inherited by your child, the assets typically do not become part of the marital estate. It is important to understand how properties are divided during a divorce in order to know how to protect your child’s inheritance in the event of a divorce. Here is everything you need to know about your estate plan and whether it can protect your children in the event of a divorce.


Estate Plan and Divorce 


It is commonly stated that inherited assets are separate property, and they are not subject to a divorce. However, while this is true on the surface, it can easily become slippery down the road. Once your child inherits the property, it will depend on what they do with the property. Mostly, your child will mix the money and other assets with marital assets. They might use the money to pay for mortgages or decide to use marital assets to renovate inherited properties. When the spouse is filing for divorce, they will claim that inherited assets have been converted to marital assets because marital funds were used for renovations or other purposes.


If your child receives an inheritance and combines it with assets they own jointly with their spouse, the inheritance may become subject to marital property division in the event of a divorce. You need to structure your estate plan in a way that funds are held for your children’s use and benefit, and continue to be separate and protected even in the event of a divorce. The most effective way of protecting such assets is to keep the inheritance in a trust account, which further protects inherited wealth from a potential future divorce.


Options for Protecting your Children’s Inheritance in the Event of a Divorce 


Trusts are usually an effective option for protecting your children’s inheritance in the event of a divorce. Trusts also come with other benefits besides protection. There are revocable trusts as well as irrevocable trusts, and they all have their own advantages depending on your key needs. A revocable trust can be revoked, making it more flexible. The grantor (you’re the grantor) usually controls the assets in the trust, sets primary terms of distributions, and can easily appoint an independent successor trustee to manage the trust after their death. In this case, assets are assumed to be owned by the trust and those intended for your children can never become marital property. Essentially, these assets are not subject to division in the event of a divorce.


For irrevocable trusts, they cannot be revoked as in the case of revocable. Since this trust cannot be revoked, you cannot reclaim asset ownership as the grantor. In this case, the estate is not only protected from future creditors and potential divorce, but also from you. Irrevocable trusts entail lack of potential flexibility, depending on the design of the trust. If you change your mind and decide to make some changes to your inheritance allocation, you will be barred from doing this. This makes it important to consult with professional and experienced estate planning and trust attorneys, such as those at Tanko Law.


Benefits of Estate Planning 


Here are the benefits of estate planning and why you should consider it:


1. Protect Your Children 


If you don’t have an estate plan, your children end up with less and it takes them longer to access it. This causes your children problems and they may not have enough to pay for their livelihood in case of a demise. An estate plan protects your children and ensures that they have their rightful share at the right time. Even for younger children, estate planning ensures that they receive the care you would want them to have.


2. Reduce your Estate Taxes 


Estate planning is all about protecting your children and family, which also means protecting them from the Internal Revenue Service (IRS). Estate planning makes it possible to transfer assets to your children while creating the smallest possible tax burden for them. Without an estate plan, the amount of taxes your children will be required to pay can be quite huge.


3. Calculate Sustainability 


You might have a clear idea of what you would like to leave for your children, but how does that correlate to your income? Estate planning helps you to reconcile your income with legacy plans. It also creates an opportunity for you to assess how sustainable your income is over a specific period. You can easily estimate how much you intend to leave your children with when you already know your approximate expenditure.


4. Make Retirement Easier 


Estate planning is not just for your family, but it can also benefit you while you’re alive. In particular, estate planning can help you make sure that you’re eligible for government benefits, such as Medicare. By sorting out your financial life, you’re more likely to take advantage of government programs available to you during your retirement. This will also give you peace of mind, knowing that your family and children are taken care of in any circumstance.


Why Choose Tanko Law? 


Tanko Law has been providing the best in Montana probate services, estate planning, wills and trusts and elder law since he opened his office doors in 1995. Tanko Law Office was founded with only one mission, providing the best legal advice in a caring manner and with outstanding customer service.


Learning how to protect your assets, get a loved one’s estate through probate, or otherwise ensuring that your loved ones are cared for after a loss can be complex and difficult. Tanko Law Office will walk you through every step of the process and ensure that every legal need you have is covered. Contact us today to learn more and get started with your estate planning.

< Older Post Newer Post >

Talk to a Montana Estate Planning Attorney

Brian Tanko brings over 20 years of experience as an attorney, CPA, and Certified Fraud Examiner to every estate plan. Schedule a consultation to discuss your situation.

Latest Posts

Montana Trust Laws: What You Need to Know | Tanko Law

Montana Trust Laws: A Guide to the Montana Uniform Trust Code

By Tanko Law Montana • May 25, 2026
Creating or administering a trust in Montana? Learn the key statutes, trustee duties, tax rules, and common mistakes, from a Montana trust attorney.
Revocable vs Irrevocable Trust: Key Differences Explained

Revocable vs Irrevocable Trusts — Which One Is Right for You?

By Tanko Law Montana • May 22, 2026
Revocable vs irrevocable trust: Discover key differences, asset protection benefits, tax impact, and which trust is right for your Montana estate plan.

Do You Need a Lawyer to Start a Business in Montana?

By Tanko Law Montana • November 24, 2025
Starting a business in Montana is an exciting prospect, drawn by the state’s scenic vistas, expanding economy, and a culture that encourages entrepreneurship. From Bozeman’s tech scene to the rural revitalization of small towns, Montana’s business environment is ripe with opportunity. Naturally, this raises a crucial question for hopeful founders: Do you need a lawyer to start a business in Montana? The short answer is no—Montana law does not require entrepreneurs to hire an attorney. However, relying solely on a do-it-yourself approach can carry significant risks. Legal counsel often proves invaluable, ensuring your business is built on a solid legal foundation and helping you avoid costly missteps. The “Do-It-Yourself” Approach: Step-by-Step Guide Many entrepreneurs choose the DIY route, leveraging online resources and the state’s accessible filing systems. Here’s what the journey typically looks like: Choosing a Business Structure: Decide whether to operate as a sole proprietorship, LLC, corporation, or another entity. Each has different implications for liability, taxes, and management. Naming the Business: Select a unique name and verify its availability via the Montana Secretary of State before registering. Appointing a Registered Agent: Montana law requires every business to designate a resident agent who can accept legal documents. Filing Formation Documents: For an LLC, file Articles of Organization; for a corporation, file Articles of Incorporation—these can be submitted online. Obtaining an EIN: Secure an Employer Identification Number from the IRS for tax purposes and to open business bank accounts. Registering for Permits and Licenses: Depending on your industry and location, you may need state or local permits and licenses. DIY Resources make this process smoother: The Montana Secretary of State’s website features an easy-to-use online business portal. Free and paid templates exist for basic legal documents like operating agreements and bylaws. Business formation services (LegalZoom, ZenBusiness, etc.) offer step-by-step assistance for a fee, but these won’t provide personalized legal advice. The Hidden Dangers of Going Solo While Montana makes starting a business accessible, there are pitfalls if you proceed without professional legal guidance: Choosing the Wrong Business Structure: A mistaken selection can expose your personal assets to liability or result in unexpected tax bills. The stakes are even higher for partnerships or multi-member LLCs, where misunderstandings multiply. Legal Documentation Errors: Without a tailor-made operating agreement or bylaws, disputes among owners become more likely. Incomplete or incorrect filings can delay the start of your business or threaten its legal standing. Most importantly, you may unknowingly sign documents with significant and sometimes detrimental legal weight. Compliance Issues : Missing a single required license or failing to comply with Montana employment laws can lead to expensive fines, legal troubles, or even forced business closure. Overlooking trademark and copyright protections exposes you to intellectual property disputes down the road. The Value of an Attorney: Far More Than a Form-Filler An experienced Montana business attorney is more than just someone who files paperwork. They become a strategic partner who can: Guide You to the Right Structure : Attorneys analyze your business goals and recommend the right entity for liability protection and tax efficiency, explaining the long-term consequences of each option. Draft and Review Critical Documents: A lawyer crafts operating agreements or bylaws that reflect your business’s specific needs, making sure all paperwork aligns with state law and offers genuine protection. Proactively Manage Risk: From anticipating disputes to helping with contracts and lease agreements, legal counsel protects you from costly mistakes. As your business grows, ongoing legal advice helps you navigate changes in law, ownership, or structure. Conclusion While Montana’s pro-business climate makes DIY company formation tempting, skipping legal counsel is a gamble. Mistakes in the choice of structure, documentation, or compliance can jeopardize both your investment and personal assets. The cost of a lawyer may seem unnecessary up front, but it often saves much more by avoiding problems later. Ultimately, entrepreneurs should—at minimum—seek an initial consultation with a knowledgeable Montana business attorney. Understanding your unique risks and requirements before launching ensures your new venture is both successful and secure. If you’re looking for an expert Montana business attorney, contact Tanko Law !