My family has mineral rights in 5 states, 31 counties with 78 total deeds. And our net mineral acre’s are quite small! Currently revenue are less than $1,000 a year. All of the deeds are in my grandfather’s name. Since his death, ownership passed to my grandmother. When she died the rights were to be divided divided equally between four daughters. My mother was one of the daughters and when she died she let all her assets to my father. He is now dead and these mineral rights will come to me. It appears that in order to prove the ownership trail just to me it will cost about $600 per county plus attorney’s fees. So it is out of the question to file in all 31 counties.
No one in all our family has ever paid any attention to these mineral rights so, I’ve spent about 2 1/2 months, bringing some organization to document our holdings. In my research I have uncovered at least five counties (and I’m sure there are more!), where active wells exist or permitted wells have been approved but we have not been contacted. I am guessing the landmen involved we’re not able to find any of my grandfather’s heirs (These few know about us now!).
This can’t be an unusual problem, and there has to be a fairly simple (and reasonably inexpensive) way to file something in every county so, when a landman is searching for heirs of my grandfather they can find us!
$600/county? Where did you come up with the dollar amount? You could have ONE document drawn up and you can individally file it in Each County yourself!
This kind of splintering of mineral interests into tiny fractions causes financial headaches for proper recording of transfer upon death through the generations, especially for states such as OK and NM which require ancillary probate when decedent resided in another state. Of course, ancillary probate in one county can then be filed in the other state counties. Consider placing the minerals in an LLC or other entity which stop the recording of future deeds. The LLC owner(s) can change, but legal title remains.
Actually . . . simple mathy and a LOT of deaths to document. Grandfather’s will = $26 for the document and $4 for each extra page. His will has 14 pages. Same with his probate documents. Then his death certificate. All these must be “exemplified” copies, since we are all out of state. Then the same thing for my grandmother. Then my mother, then my father. The another document for my sister. It add up to $546. but it will likely be more since I don’t have all the documents. I am doing this myself but an attorney has been required to re-open the estates of my mother and father.
In the probate situation: Some states like Oklahoma, allow joint probates involving multiple generations. Thus, it is possible handle several estates in one proceeding which can make sense if the only assets are minerals. Also, once the final order is issued it can be filed in each county where the minerals are located. No need to file death certificates and/or Wills, the order is all that is needed. If the order is lengthy, Oklahoma allows the filing of a synopsis of the order in the additional counties. This can reduce the clerk’s filing costs.
As far as reopening estates, in many states that have final probate orders there is an “after discovered” clause which allows filing with the county clerks without the need to reopen the estate. Some states have different rules.
You are correct that this will be costly no matter which way you go. There is certainly a cost-benefit analysis.
Also, check unclaimed property in all states connected to your relatives residences and where the mineral interests are located.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
In Tennessee (where my parents died) we had to reopen each of their estates. SMH. Most of our properties are in TX but we do have 1 NM county and 2 OK counties. I’ve talked with New Mexico, and I think Lea County will work with us. I will talk with Seminole County, OK today.
I hope maybe TX can / will do the same thing!!
Probably 30 years ago, I know we filled out an “Affidavit of Heirship” or something like that in one TX county (Winkler). It would sure be nice if I could do that again with current information and then that could be shared among the 25 other TX counties! That would save a HUGE amount of money . . . a lease HUGE to me!!
Do make sure you go to the unclaimed property website (all states)and search with your name and every decedent you can think of.
Our wells are in Texas, but the royalties were escheated to the State of Oklahoma because that is where the lease holders headquarters is located. Funds were in my great grandmothers , great uncles aunts and grandmother’s names. They had been deceased 10 plus years by the time the wells were producing in the 80’s. Keep digging! Good luck!!