Greetings! New to the site and happy to have found you all!
I'm the POA of my (living) folks, and at the advice of our CPA, my siblings and I have decided to purchase our folks' mineral rights in Arkansas (to keep them out of probate or government hands, should my parents ever need medicaid). In order to do this, can I just print out and fill out a purchase agreement or will this require assistance from a lawyer or broker of some kind? I understand how to valuate it, and where to send copies of the forms. It's just tricky because there are 4 of us buying it. Thanks in advance for all your advice!
Momwifedaughter in Indiana
I suggest that you find an estate attorney to implement an Irrevocable Trust.. Google Lady Bird Deed to see if it's legal where your parents live ... this deed eliminates the need for probate and protects the property from Medicaid. If you go this route, then the homestead will not have to be funded into the Trust.
The trust will need a Trustee ... four is too many. Flip a coin. With four siblings involved, some of you may not think alike, so if you can't agree on division of property and responsibilities, "duke" it out at the attorney's office so you can be advised by one who knows trust laws and can offer his objective opinions. Also, you might want to ask the attorney if an Ancilliary Agreement or Survivorship Agreement might help to smooth things along with the fiduciary responsibilities of running a Trust
Good luck,
Pat
M/W/D-
I went through this 4 years ago. Assuming everything is in order, Mom & Dad own the rights free and clear, I would suggest a Quitclaim Deed to one person completed and filed with the county where rights are located.
As one of six siblings with some who don't believe in oil development, my father decided I'd be the one since I'm POA financial, health & executor. He also determined since his grandfather decided this as an investment it will remain that. In our case splitting the holdings into the next generation by 27 creates multiple nightmares, so the one person route was explained to all by dad. The next generation person will be decided by me with direction's to hold the same parameters and desires as above. The dollars are divided up, after taxes are taken out for me, to the 6 children and I write checks to them. Trust that we don't always get along, especially on fracking & drilling and come to think of it many things- but this is the way its set up and that's the end. Dad said it, did it, the books are always open and I sleep fine. The one caveat is any child can give up their rights in writing at any time to be pooled back in, no one has done it.
Just an opinion and 2 cents.
Regards, John
If there is a concern about Medicaid eligibility or VA Aid and Attendance eligibility you would be well advised to seek out an elder law attorney who specifically practices in that area. Failure to do so and acting without such advice may result in the imposition of a a penalty period that can delay your parent's benefits with Medicaid.