My father wants to transfer his mineral rights to me. Must I go to the counties in OK to have them transferred or can I have them done in AR (where my dad lives) He is listed as joint owner with his brothers on the mineral leases he has copies of. Right now he has most of the land leased so how does the transfer affect his royalties?
Nobody must physically go to OK. Yet your father's signed and notarized deeds must eventually be recorded in the appropriate OK county courthouses. Seek professional help if you're unsure how to properly do this. You will want to make sure his deeds are properly prepared and recorded.
The fact he is a "joint owner" is inconsequential. His brothers will still retain whatever they owned. If Dad deeds his interest to you, only his interest is transfered by his deed.
As to the "royalties"; This implies some of Dad's interest is already producing. If Dad wants to keep receiving the checks you would not want to record the deed yet. Just keep it in a safe deposit box and record it after his death, or after he decides it is time to relinquish receiving the royalty payments.
If Dad wants you to receive the royalty checks now, then record the deed and request a certified copy from the court house. Then call the oil company who is paying the royalty. Request their required process to change it over into your name. They'll likely want that certified copy you requested, don't send them the original. :)
Leased minerals which are not producing would be handled in a similar fashion. You will need to inform them of the change in ownership. Once the deed is recorded call / write the oil company which holds Dad's lease and inform them of the change in ownership. They'll have a process for you to follow too. Good Luck.
*You must file the deed in each OK county that your dad owns mineral rights in.
*You have to put the Section Township and Range of each mineral interest on the deed.
*If your dad deeds the mineral rights to you, you are at that time entitled to receive the mineral rights. If he wishes to continue recieving royalty, have him reserve a "Life Estate" to the minerals. In this case, he will continue to receive royalties until his death and at that time the royalties will revert to you.
thank you both for the information. I think he will want a Life Estate which is fine with me.
How are the minerals titled with your dad and his brothers? Are they joint tenants with rights of survivorship? If so, then the survivor of the brothers will own all the minerals. But if your dad deeds to you then only his interst passes and the right of survivorship, if any, will remain with the other two. You say he is a Joint owner which implies possible the right of survivorship. He may only be a tenant in common.
If not then it does not matter.
He can then transfer to you and retain a life estate or he can have a transfer on death deed prepared and filed for your benefit.
Matthew- it looks like all the brothers have partial interest . Grandparents' Will divided the interest equally among the brothers and the deeds I have copies of list all the brothers. One is deceased and I know his son has those rights (from his parents wills) but my dad and his brother still have their rights.
Next question-where does one get the transfer papers to fill out. Also is a warranty deed the same as mineral deed and handled the same way?
Many different places. Abstract Offices, Office Supply stores. Attorneys (obviously and preferred).
Warranty Deeds are a type of deed that refers to the "Warranty" that is given by the seller to the title. In a "warranty" deed the seller is "warranting" the title against all claims by third parties.
The deed has a warranty clause in it.
Contrast that to a "quitclaim" deed where the seller says I am transferring whatever i own with no warranties as to title. Both deeds are good. If you are buying from a third party, you want a warranty deed. If you are transferring within your family, a "quitclaim" deed will work just as well. If you have no concern about the title, then a quitclaim is also fine.
No answer from me since I know very little of legalities. However, since wills, deeds, etc. have been discussed in this forum, I hope I can ask a question relating to this.
What if the mineral rights owner died intestate? (no will). Her daughter is now having her mother's (mineral owner) mail delivered to her home as c/o daughter's name. Also signing bonus check was written in her (daughter's) name? Does that establish ownership?
Since everything else went to her (daughter) because mom died without a will, would daughter need an affidavit of heirship or the like?
Thank you in advance for your answer, Pam Kelly
Susan,
Be sure to use an attorney to transfer this or you will be paying big time later to get the mess clear up.
Also, don't forget the tax people. When someone transfer minerals or anything else, it may be considered a gift and you have to file a gift tax report, you may not owe any taxes. But, gift tax come off your total estate exemption unless that get changed with all the Obama new rules. Also, if these minerals have no production now, but your father keeps life estate, then you may owe estate tax later on. Be sure to check all these things out with your CPA as rules change yearly, nothing is simple nowadays.
I don't see where anyone answered your question. No will. Intestate. Most states have laws on the books to handle this. Depending on what that state's probate law says is how it will be handled. Might be a bit of a problem if mother lived in one state and minerals were in a different state.
I am not a lawyer. What I have been told is that if a probate is not done in Oklahoma, the rights can not be sold. They can be passed to heir by state's statute so heir receives royalty. If I were the I would call for estimate from lawyer to probate. Then get it put in writing that the service will cost no more than xxxx.
Daughter should do this so her children or other relatives don't have to deal with it later at a much higher cost due to the complexity of waiting decades to clear it up.
Pam Kelly said:
No answer from me since I know very little of legalities. However, since wills, deeds, etc. have been discussed in this forum, I hope I can ask a question relating to this.
What if the mineral rights owner died intestate? (no will). Her daughter is now having her mother's (mineral owner) mail delivered to her home as c/o daughter's name. Also signing bonus check was written in her (daughter's) name? Does that establish ownership?
Since everything else went to her (daughter) because mom died without a will, would daughter need an affidavit of heirship or the like?
Thank you in advance for your answer, Pam Kelly
Pam Kelly said:
No answer from me since I know very little of legalities. However, since wills, deeds, etc. have been discussed in this forum, I hope I can ask a question relating to this.
What if the mineral rights owner died intestate? (no will). Her daughter is now having her mother's (mineral owner) mail delivered to her home as c/o daughter's name. Also signing bonus check was written in her (daughter's) name? Does that establish ownership?
Since everything else went to her (daughter) because mom died without a will, would daughter need an affidavit of heirship or the like?
Thank you in advance for your answer, Pam Kelly
Yes Pam an Affidavit of Heirship and a copy of the mother’s death certificate should be place of record.
Ms. Kelly, just because the lessee takes /offers a lease to you or a check does not establish ownership. If a producing well is drilled they could withhold royalty payments until you proved you own it, which could be expensive with probates and quiet title actions.
Pam Kelly said:
No answer from me since I know very little of legalities. However, since wills, deeds, etc. have been discussed in this forum, I hope I can ask a question relating to this.
What if the mineral rights owner died intestate? (no will). Her daughter is now having her mother's (mineral owner) mail delivered to her home as c/o daughter's name. Also signing bonus check was written in her (daughter's) name? Does that establish ownership?
Since everything else went to her (daughter) because mom died without a will, would daughter need an affidavit of heirship or the like?
Thank you in advance for your answer, Pam Kelly
Pam,
This may help you understand if you need to probate.
Definition of 'Intestate' The act of dying without a legal will. Determining the distribution of the deceased's assets then becomes the responsibility of a probate court.
You may be able to get the mineral checks now, but once it goes to your children it may be a real probably.
I purchases a farm a few years ago and had a local attorney check the title. But, once someone wanted to lease it, I found out that my grandfather's estate wasn't probated, everything just went to grandmother, at least that is what we thought. To make it short, I had to hire an attorney and prove that my grandfather had passed away and it was very costly. So, if it's not a large estate, it shouldn't cost you a lot of money to probate and get it clear up now. Clearing titles can be very expensive later.
Mr. Kennedy is correct. A lease of record does not establish ownership and probate proceeding can be lenghtly and costly. An Affidavit and death cert. will establish constructive notice (legal statement of claim) which will put all parties on notice until a probate is filed. Make sure the affidavi at is signed by someone other than an heir such as a close family friend and has all the current addresses of the heirs. Even if the estate is not probated, oil companies will often lease anyways. When they do, have all the heirs pitch in to have the probate done so you all ha v.e clean .title and can collect royalties or sell your interest
You can transfer ownership wherever you are but you should record the deed in the county in which the minerals lie, you can probably do this by mail if it isn't within driving distance. If your father wants to keep the proceeds from the minerals until he passes, I'm fairly certain that he could deed you the minerals yet retain a life estate in the proceeds. I would talk to an attorney.
You can also file a Transfer on death deed in the state of Oklahoma. It can be voided, or changed if the situation changes. Say the grantee precedes the grantor in death. After death, an affidavit with a copy of the death certificate is filed that completes the transfer.
Thanks Rick! I hadn't heard of the "Transfer on Death Deed", but that sounds like the way to go in the event you want to avoid a costly probate!
However, just for clarification, you don't mean to actually record the deed, but instead, prepare the deed and place in a safety deposit box or wherever you store your important documents and when you die your heirs will record the affidavit, death certificate and deed at the county clerks office.
Am I understanding that right?
Rick Howell said:
You can also file a Transfer on death deed in the state of Oklahoma. It can be voided, or changed if the situation changes. Say the grantee precedes the grantor in death. After death, an affidavit with a copy of the death certificate is filed that completes the transfer.
The ones I have seen the deed was recorded shortly after they were signed. After death the affidavit is filed with the death certificate. It must be filed within 9 months.
Here is a recent thread on the subject.
Rick, thanks for bringing up this topic! I've been through two estates in three states which, included two probates that included a life estate for the surviving spouse, but now that you've mentioned this "Transfer on Death Deed", it may be something I need to check out a little further!
Thanks again, for your help!!