My father died in 1990. My mother listed mineral rights in Pecos when she filed probate in Michigan where they lived. In 2012 my mother and siblings and I received offers for mineral rights in Reeves county. We were previously unaware of these mineral rights. The company offering to buy stated my mother owned 1/2 of the interest and the other 1/2 was split between the 5 children. Mom and one sibling sold at that time. In 2019 we started receiving offers again. One landman making stated Mom did not have the right to sell previously because the whole interest should have gone to the children since it was not listed on probate. He wanted her to sign a statement that she had a life interest only. I guess my guestion is how do I find out how the interest should have passed. Texas law or Michigan law?
I do not know Texas or Michigan law, but I’m fairly certain that the interest passes according to the state where the land or mineral interest is in. Unless there is a will dictating otherwise.
Lands are situated in Texas. If she had died intestate (no Will or Probated Estate), it would follow Texas Law, but seeing the Estate was Probated in Michigan, it would follow the Order from the Michigan Probate Court.
The question is, did you father have a Probated Estate? How did you father get the lands? If inherited by him, it would be separate property. If the property was separate and he died intestate, your mother would have inherited a 1/3rd Life Estate. If they bought it as community property, she would have half and your father would have half 50/50.
My father inherited the mineral rights in Reeves county and also Pecos. When he died Mom listed the Pecos interest but not the Reeves. I don’t know if she knew about them or not. Dad passed in 1990 and we never knew anything about Reeves until we received offers to sell in 2012. That offer said mom would get half and us kids would split the other half. Mom accepted the offer. Then in 2021 we were again contacted about selling. This guy said mom should not have recieved anything, should have all gone to the children. He wanted her to sign an affidavit that she " makes no claim to have inherited any assets other than specific items listed". Dad’s will was not probated due to small size of estate. Noble Energy’s division analyst said in 2019, by Texas law, a 1/3 life estate interest to mom and remaining 2/3 to the children, with a remainder interest in the 1/3 life estate to the children.
So questions: What does life estate actually mean? Do we need to hire a lawyer to correct all this and are we owed money? Mom is 91 and would like to resolve this ASAP. If siblings have sold their interest, have they also sold their right to the 1/3 remainder interest? This is all so confusing! FYI There is no animosity or problems among family members. We just want this resolved correctly. Thank you so much for your response, information abd help.
Thank you. I have done some digging through paperwork and have some answers now. But still more guestions!
Texas law applies regardless of where a prior probate was done. I can’t tell you Texas law, but the law where the real property (and minerals are considered real property) is located applies.
Should you hire an attorney? If it is important to you and your mother to get answers to this issue, then yes.
Some wills have a “catch all” phrase. Something like “All the rest and remainder, wherever situated, I give to ……
Have you checked the Texas Unclaimed Property website gor your father’s name.posting the legal description may help to determine what, if any, activity is occurring on oe nearby.
Historically the Life Estate has been in place to ensure children or step children can’t kick a survived spouse off the land. It was so a surivived spouse had a say in how the land was handed after someone died. Since your mother sold her interest, she sold her 1/3rd Life Estate. You and your siblings split the remaining 2/3rd interest evenly. That said, it will revert back to you and your siblings when the day comes that your mother passes away. It’s automatically, no need for probate or anything, it just revert back to you and your siblings and the company she sold to will lose their rights. You will want to file an Affidavit stating she passed away and record it in Reeves County when that happens so the record is set straight.
We have checked for unclaimed monies, but nothing showing. We have established our ownership, but are questioning the proper division from when my mother sold. Needd to go back and look at some documents again. Thank you for your response.
Thank you. This information helps alot. At least we know we know what to do when mom passes. Mom sold 1/2 interest because that is what they ( Estill-Sheffield) said she owned. So they got more then they should have. Would the siblings who have sold their interest, still get their share of the life estate, or have they sold that also? Again thank you so very much for the information and your help. This stuff is very complicated.
Seeing your mother sold her 1/3rd Life Estate to Estill-Sheffeild, she sold all of her interest. Estill-Sheffield will own that 1/3rd interest for as long as your mother is alive. Upon her death, it will revert to the remaindermen, in this case you and your siblings in a even split, and Estill-Sheffield will no longer own that interest. If they told you you all were selling 1/2 the interest, it sounds like they weren’t familiar with Texas intestacy law and they actually bough less then what they thought, especially seeing their interest will be erased upon the termination of the life estate.
As for the siblings sold their interest, they also sold the future 1/3rd interest. In other words, upon your mother’s death, the individuals or companies your siblings sold to with then gain the fractional interest from your mother’s 1/3rd.
Hope this helps you have a better understanding.
Thank you so very much. You have cleared up alot of guestions. I very much appreciate your help.
You sure about the 1/3rd interest bought by E-S reverting back to the remaindermen upon death? Dont think thats correct, the transaction would cancel out the life tenant’s interest into the minerals, while leaving the remaining 2/3rds interest into the life estate unto the heirs upon death, but its been years since Ive dealt with that scenario
I’m sure. Think about it like this. You can’t sell what you don’t own. In this situation, the seller owned a life estate, which upon her death will revert to the remainermens. The seller in this situation conveyed her life estate interest, which is now owned by E-S. They now own the life estate, which is always associated with the original life estate owners life span. Upon her death, the life estate is terminated and reverts to the remaindermens. Just because she sells it doesn’t give E-S any more ownership.
Looks complicated. Maybe you could all chip in and get a good Texas O & G attorney?.
It does seem complicated, but in my opinion, hiring an attorney here would be unnecessary. There is really nothing that needs to be done, as everything has already fallen into place.
The only think that will need to be addressed is filing a notice upon the death of the life estate owner, which could be years, you never really know. Thats just my two cents.
Guess it all depends on when dad got the property and if he was married to mom at the time. Given moms age, I highly doubt a professional mineral company would buy her life estate interest knowing it would revert back to the kids due to her age unless there were multiple wells about to be drilled so they could recoup their money and make a profit. How many wells have been drilled on it since 2012 is another question to be asked.