House Bill No. 566

Introduced By _______________________________________________________________________________

A Bill for an Act entitled: "An Act to increase the amount of life insurance that is not considered part of an estate; amending section

72-16-304, MCA; and providing an immediate effective date and a retroactive applicability date."

Be it enacted by the Legislature of the State of Montana:

Section 1.  Section 72-16-304, MCA, is amended to read:

"72-16-304.   Insurance proceeds part of estate -- exemption. All insurance payable upon the death of any person over and above $50,000 $250,000 shall be deemed is considered a part of the property and estate passing to the person or persons entitled to receive the same it and, if payable to more than one person, the $50,000 $250,000 exemption shall must be prorated between such those persons in proportion to the amount of insurance payable to each."

NEW SECTION. Section 2.  Effective date -- retroactive applicability. [This act] is effective on passage and approval and applies retroactively, within the meaning of 1-2-109, to the estates of persons dying after December 31, 1996.