How can I transfer mineral rights to my son?

General Mineral Rights Discussion
1

Hi there,

I own a 1/12 interest in 522 acres (about 43 acres) out of the JM Mora Survey, A-47, in Anderson County, TX.

I have no idea what it’s worth. I granted a 5-year lease to Champlin Petroleum in the 1980s. No activity since then. The phone numbers on the 1980s correspondence are all dead.

I would like to transfer the rights to my son. Any idea how I could do this?

Thanks very much for any insights you can offer.

Dan Armstrong

2

Do you want to sell your rights to him, or gift them to him? If you want to sell your interest to him, you will want to execute and record a mineral deed that contains the legal description of the property you want to convey. You use a mineral deed when money is exchanging hands. If you want to gift it to him, you can execute and record a gift deed, again with the legal description of the property you want to convey. I’d recommend researching both options and decide what you want to do, then have an attorney draft the document.

3

Hi there. I just came back to this after a year. Sorry I did not thank you for your reply. I just went over to a Texas records website and dug up the lease. I’m guessing that this has sufficient information to execute and record a gift deed.

I know a few general-purpose lawyers - one in Boston, one in Seattle - but I’m wondering if executing and recording a gift deed is a job for a local attorney who is well versed in Texas mineral rights. If so, is there an individual or a firm that you could recommend?

Thanks again for your original reply, and thanks in advance for any light you can shed on this issue.

4

You can observe professionals who provide services to mineral owners in our Mineral Service Provider Directory. These are often able to provide specific services that meet your needs.

The Mineral Rights Forum Administration

5

There can be negative issues with gifting minerals to a child. If your goal is to avoid probate there are better ways to do this apart from an outright gift. Negative repercussions could include:

Negative impact on eligibility for SSI, Medicaid and Veteran’s Benefits for yourself and your son. Loss of ability to have a stepped up basis in the property in the event your son sells. Loss of control.

If you have a trust, a Texas attorney can prepare a deed. If you do not have a trust, consider a simple mineral trust or a Transfer on Death Deed.