Life & viatical settlements in Montana

How life settlements work in Montana

Montana regulates life settlement transactions under state insurance law, with licensing required for providers and brokers operating in the state.

The Montana State Auditor, Office of the Commissioner of Securities and Insurance licenses life settlement providers and brokers and serves as the primary regulatory authority for Montana consumers with insurance-related questions. Montana law gives policy owners the right to rescind a life settlement contract within 15 days after the contract is executed.

For cancer patients in Montana, the most common path is a viatical settlement under IRS §101(g), where proceeds are generally tax-free at the federal level if the insured is certified as terminally or chronically ill. Montana generally follows federal income tax treatment for qualifying viatical settlements.

Medicaid impact in Montana

A life or viatical settlement can affect eligibility for Medicaid and other means-tested public assistance programs. Montana's Medicaid asset limit for individuals is currently $2,000 (2026). Because Medicaid rules vary by program and individual circumstances, Montana residents should review current eligibility requirements through the Montana Medicaid before accepting a settlement.

Depending on your situation, planning tools such as special needs trusts or pooled trusts may help preserve eligibility for certain public benefits. These arrangements generally should be established before settlement proceeds are received.

This is often the most important planning consideration for Montana cancer patients considering a life or viatical settlement. We can help connect you with a Montana elder law attorney if additional guidance is needed.

What’s different about Montana

• Montana regulates life settlements through licensing requirements for providers and brokers
• Owners have a statutory right to rescind a life settlement contract within 15 days of execution
• State oversight rests with the Montana State Auditor, Office of the Commissioner of Securities and Insurance
• Medical and policy information remain protected under HIPAA privacy requirements
• Federal tax-free treatment may apply to qualifying viatical settlements under IRS §101(g)
• Medicaid eligibility may be affected by settlement proceeds depending on the recipient's circumstances

Major Montana cities we serve

Statewide. Our licensed specialists work with policies throughout Montana, including Billings, Missoula, Great Falls, Bozeman, Butte, and Helena, and surrounding communities. No in-person meetings are required. Documentation, signatures, and notarization can all be completed remotely.