Do I use a mineral deed or an assignment to convey mineral interest to a trust?

Ownership and Title
1

Mineral interest established in an Affidavit of Heirship. Does California require use of a mineral deed or an assignment to convey this mineral interest in Colorado to my trust? Or what is best practice generally if not covered in CA law? What consideration would be specified in the instrument?

2
  1. Is it important to you that this be done correctly?
  2. Are you or your heirs going to be upset if it done correctly?
  3. Do these have any value?

If the answer to any one of the above is yes, then you should secure professional help knowledgeable with Colorado law to get this done correctly. there is a very good Colorado lawyer listed in the directory above.

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3

I appreciate your helpful suggestions. Thanks.

4

Great question. You need to follow the laws for transferring in the state where the minerals are located if different from your home state. Many trusts are created in California and the attorneys don’t understand that mineral interests are an interest in real property thus requiring a deed in order to “fund the trust”.

This actually happened to Bing Crosby, he had a Trust but did not transfer his Oklahoma minerals into it. He died in 1977, almost 40 years later his grandson had to probate Bing’s “pour-over will” in Oklahoma. The minerals went through probate and were added to his trust.

So, if you are creating a trust or have one, make sure that your minerals are deeded into it. You should contact an attorney in the state where the minerals are located to insure that the proper deed is filed. It is also a great idea to advise your company’s owner relations of the change.

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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5

Probably depends on the state and the nature of the interest. In my experience, I deed minerals, and assign overriding interests. I don’t own any NPRIs so I’ve never had to convey them.

6

Thank you so much for this clarification and the words of caution.

7

Appreciate your help and clarification about the various possible interests.