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Can there be more than one grantee
beneficiary?
An owner may designate more than one grantee beneficiary
for his or her Montana real property.
However, the owner
should specify in the beneficiary deed whether the grantee
beneficiaries will own the property (after the death of the
owner) as tenants in common or as joint tenants with right
of survivorship. For further information
regarding these
two forms of property ownership, read MSU Extension
MontGuide, Property Ownership (MT198907HR).
Request a copy from your local Extension office.
Because the language for a beneficiary deed that is
provided by the Montana statute does not specify the
type of ownership when there is more than one grantee
beneficiary, an owner should consult an attorney for
advice about which form of ownership would be best to
accomplish his or her estate planning goals.
What happens if a grantee beneficiary dies
before the owner of the real property?
If an owner designates only one grantee beneficiary and
is concerned about what happens to the property if the
grantee beneficiary dies before the owner, he or she may
designate one of the several alternatives listed below for the
distribution of the property listed on the beneficiary deed.
1. e owner may specify that the beneficiary deed
becomes void upon the death of the grantee beneficiary.
2. e owner may specify that the Montana real property
becomes part of the estate of the deceased grantee
beneficiary. Under this condition, when the owner(s)
die, the real property is distributed according to the will
of the deceased grantee beneficiary or, if the deceased
grantee beneficiary had no will, to the heirs of the
deceased grantee beneficiary under Montana intestate
statutes. is alternative may present complications
if several years lapse between the death of the grantee
beneficiary and death of the owner(s). An attorney can
provide information about potential consequences of
using this alternative for your specific circumstances.
3. e owner may specify a successor grantee beneciary, as
discussed in more detail in the next section.
Who can be a successor grantee
beneficiary?
An owner of Montana real property can also designate a
successor grantee beneciary in case the grantee beneficiary
dies before the owner. If an owner designates a successor
grantee beneciary, the beneficiary deed should state the
condition under which the successor inherits.
Example: Mark owns real property in Montana. Mark
recorded a beneficiary deed to be effective upon his
death, naming his son, Evan, as his grantee beneficiary.
Mark also designated his grandson, Luke, as the successor
grantee beneciary in case Evan dies before Mark. Mark’s
attorney recommended the following language in the
beneficiary deed: “If Evan dies before me, I name Luke
as the successor grantee beneficiary effective upon my
death, should he survive Evan and me. If Luke does not
survive Evan and me, this deed shall be void.”
If an owner names more than one grantee beneficiary
and specifies that they are to become owners as joint
tenants with right of survivorship, the surviving joint
grantee beneficiaries inherit the real property if one of
the joint grantee beneficiaries dies before the owner. An
owner should specify what he or she wants to happen to
the property if all of the joint tenant grantee beneficiaries
die before the owner.
Example: Patricia recorded a beneficiary deed for her
Montana land to be effective upon her death, naming
her sisters, Fay and Ellen, as grantee beneficiaries
with the title to be held as joint tenants with right
of survivorship. If Fay dies before Patricia, Ellen
will become the sole grantee beneficiary. Patricia’s
beneficiary deed should specify what happens if neither
Fay nor Ellen survive Patricia. erefore, Patricia’s
attorney recommended the following language in the
beneficiary deed: “If both Fay and Ellen predecease
me, the Montana 4-H Foundation will become the
successor grantee beneficiary effective upon my death.”
If an owner names more than one grantee beneficiary
and does not specify that they own the property as
joint tenants with right of survivorship, the grantee
beneficiaries inherit as tenants in common. e
beneficiary deed should specify what happens to the
interest of a deceased tenant in common grantee
beneficiary if he or she fails to survive the owner.
Example: Edna owns real property in Montana and has
recorded a beneficiary deed to be effective upon Edna’s
death. She named her two sisters, Wendy and Patsy,
grantee beneficiaries with the title to be held as tenants
in common. Edna’s beneficiary deed should specify
what happens to either Wendy or Patsy’s interests if
they do not survive Edna. erefore Edna’s attorney
recommended the following language in the beneficiary
deed: “In the event that either Wendy or Patsy does not
survive me, her one-half interest in the real property
shall be distributed to the Montana State University
Foundation effective upon my death.”