When my great-uncle died in 1979 he left a number of mineral interests in East Texas to his nieces and nephews - totaling perhaps 300 acres with a few in production… His executor died without distributing them and now most of the original heirs have passed away as well. Is there a simple way to transfer or sell these interests without appointing a new executor? There’s also some royalty payments we’d like to reclaim from the State of Texas.
This is a question for a Texas probate attorney. He or she should be able to guide you through the process. It may well depend on the stage of the 1979 probate. The answer might be fairly simple. With 300 acres at stake, it is probably well worth the investment in attorney’s fees.
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Was there a successor identified if the executor died in the will? Usually, a new executor is appointed by the court if the original executor dies before distribution? Given the length in time since this happened and numerous heirs have passed away, this definitely wont be easy, youll have to go to court to get a new executor appointed and then youll have to deal with the heirs that passed away and distributing their “shares” in the acreage.
Richard, Bob, Thank you for the quick responses!
I generally understand the probate option. But my great-uncle’s will doesn’t provide a successor executor and there are more than a dozen second and third generation heirs and as many mineral claims. Having the court appoint an administrator to prepare deeds, division orders and unclaimed property requests would be costly. Minerals are often forgotten and can lead to situations like mine, so I’m hoping the readers of this blog have simplifying ideas.
For example, what if every heir simply deeds their interest in an complete list of mineral properties to an llc or S corp without going through probate? (Which is something I could prepare and file at little cost.) Could the llc compel payment of suspended royalties by an oil company? Claim unclaimed funds from the State of Texas? Enable the llc to lease minerals in the future?
If going back to the probate court is essential, are there ways to simplify? Thanks again for your thoughts! Frank Cushing
I’m an old timer and its been years since Ive practiced law, but fairly certain you will need a court appointed administrator (the court appointed administrator simply distributes the minerals from the estate to the living heirs at the time of death in 1979, the administrator wouldnt prepare deeds, division orders and unclaimed property requests, that would fall upon the heirs from the original probate,will, final decree) to distribute the minerals out of the original estate before you can divide them, so its likely a 2 step process if many of the original heirs died, then youd have to rinse and repeat. Any future well drilled will have a title opinion done where the attorneys will flag that interest, meaning you wont be paid on it. It sounds daunting but its fairly easy to do if you know the heirs, any oil and gas attorney worth a lick should be able to do this in 2-3 hours billable time, so might cost ya around $500 as long as you provide them the will/final decree and the heirs that stem from each person that passed.
Bob,
You are on point.
I would add that if the estate was not closed (and few Texas estates ever are) then you can petition the court to be appointed a successor Independent Executor and never have to come back for the court’s approval. My mother was the independent executor of our father’s estate. When she died, I was appointed as her executor and petition to be appointed as successor IE for my father’s estate. He died in 1973 and she in 1996. With publishing it took less than three weeks.
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Frank: the heirs cannot just deed their interest to an LLC because they don’t have title until they get a distribution deed from the estate’s administrator or executor.
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The situation is a mess and will take an experienced attorney some time to straighten out. By the way, because the Will does not name a successor executor, the court will appoint a dependent administrator unless all of the distributes under the will consent to the appointment of an independent administrator, which is complicated by facts some have died and their legal successors would need to consent.
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