Needing some information please. My mom has mineral rights in Oklahoma and she wants to transfer them to me. Can anyone advise the easiest way to do this. What form(s) are required and where and how must they be filed. Hoping to do this without the use of a lawyer as that would cost more.
The transfer can be done with a mineral deed that is filed in the county where the minerals are located. Before doing so consider the following:
Capital Gains Loss of stepped up basis in the property. If you sell the minerals, then you would calculate the capital gains taxes based upon the value as of the date she received it. But if you inherit through a Will, Trust or Transfer on Death Deed, then you will receive a stepped-up basis. This means that may be able to minimize or avoid capital gains taxes by inheriting.
Medicaid and VA Benefits If your mother enters a nursing home and applies for Medicaid or VA Benefits then gifting the minerals may create a penalty period which could impact her eligibility. 5 years for Medicaid and 3 year for VA.
Gift Tax you may want to check with a CPA to determine whether the gift would trigger a gift tax return.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
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Any kind of Deed would do: Warranty Deed, Quitclaim Deed, Mineral Deed. I’ve attached an example with standard conveyance language. It would say all right title etc. instead of fifty percent. The key is to list all the lands properly, which you can find on the deed(s) where she received them, and file it in the county or counties where they are located.
You can also go on OKCountyRecords.com and find infinite other examples. Not sure if you have to pay to view them. There are numerous oil and gas producing counties in other states where you can find examples that can be viewed for free.
MD Example.pdf (76.5 KB)
Do we have to file in person or can it be notarized and mailed. And where do we file…city county building, what office etc…thanks!!
It can be mailed, some accept electronic submission. Search for insert County Recorder and/or Clerk and look for recording instructions. Call or email ahead to verify.
JJJJ66,
- are these minerals important to you? Do they have value?
- Are you going to be upset if they aren’t done correctly, and you have to probate your mother’s estate?
If the answer is to either one of the above is yes, then you may wish to consult with a lawyer instead of taking free legal advice from people on a free website? Keep in mind you get what you pay for.
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