My father passed away without a will and had some mineral rights in ND. I'm planning to go thru the ND Informal Probate to distribute the rights to his heirs (4 sons). The process mentions 2 types of Deeds: Personal Representative's Distribution Deed and Personal Representative's Deed.
I've noticed several deeds on File in ND, including my father's, that say the rights were sold for $1. What's up with that? As the PR, I suppose I could sell the rights for $1 to each of the heirs. My father got him from his father as a sale for $1 out of a Trust.
But, the Distribution Deed looks simpler and no money has to change hands. The 4 sons are entitled to the property as heirs. Is there some legal, tax, or other financial benefit to selling them? Does it have something to do with filing for a Depletion Allowance? Do I need to sell them to establish a Capital Investment?
Also, is there any reason to create separate Deeds for each heir rather than a single Deed listing each of the heirs? Especially since the heirs will be getting equal portion
Thanks for helping in advance!
I would say all you need is the personal representatives mineral deed of distribution and not have to sell the minerals to the heirs. All of the names, how much is owned and where on the PR's deed should be fine as each person can make his own deed if he should ever sell.
Awesome! Thanks for the quick reply! That's what I was thinking.
It's normal to have for love and affection or for the sum of $1 or just as distribution, many types of wording of consideration will work and like r w said, just one deed will work with all their names on it and in equal shares or equal interest or just equally.
Thanks Joe! I've spent a good amount of time researching this. It feels good to know I was on the right track.
I would advise you (not as an attorney) not to specify what you think your Dad owned in the Distribution Deed but instead to convey all of what he owned in "general terms," or to go ahead and specify what you know he owned BUT leave room for anything else that you didn't know about. I know that sounds counterintuitive.
For example, if you know he owned mineral interests in Tracts A, B, and C, and the Distribution Deed says that those tracts alone are conveyed, what if some other tract, Tract D, shows up years down the line, perhaps a mineral interest that nobody knew about, including your Dad? Then, depending upon how the Residuary Clause of the Will was worded, the mineral interest on Tract D might or might not get to the four sons. And you might have to go through more paperwork. Anyway, a real attorney would be familiar with the concept that I am trying somewhat crudely to describe here.