Is old deed a mineral deed or a gift deed?

Hi, I am new here, I hope this question is appropriate.

When going through my grandmother's things, I came

across a recorded "Mineral Deed" in which she transfers mineral

rights to my dad (in 1953) but the consideration is "one dollar

cash paid in hand" and "affection". Would this be considered

to be just a gift deed since the money amount is so small?

If it were not a gift but indeed a sale, my mom would still

own half the minerals involved (I guess), as my dad transferred all his

rights to the land several years later, but my mom did not

(my parents married in 1951).

There are several producing wells on the property.

Thanks!

Hi, the mineral deed in 1953 does not state “and other good and valuable considerations”, nothing but “$1.00 cash in hand”, and “affection”. I do live in a community state, Texas, but from what I have read, because apparently only a nominal amount changed hands, this would likely be considered a gift deed, and my mom would not have owned half the minerals because of that, since it wasn’t really a sale. Also, my dad reserved nothing when he transferred the land later (it was put up as collateral on a loan his brother took out for a business that failed). Thanks for your help, does this clarify a bit?

Dear Ms. Jordan,

“Love and Affection” is the typical consideration for deeds of gift. Many times in the granting clause, the words “grant, set over, convey and gift to…” are included, however love and affection skins the cat. A gift deed is generally defined as any conveyance that has no monetary consideration. Relationship of the parties is not a consideration in making an interpretation.

Not being an attorney limits any further speculation on my part. If you are asking me to jump one way or another based on what you disclosed, my inclination is that what you have is indeed a gift mineral deed and that is what I would call it if I were running title in Texas.

Thank you, Mr. Cotten…what is it they say, advice is what you ask for when you don’t want to know the truth…! I appreciate your input very much.

Buddy Cotten said:

Dear Ms. Jordan,

“Love and Affection” is the typical consideration for deeds of gift. Many times in the granting clause, the words “grant, set over, convey and gift to…” are included, however love and affection skins the cat. A gift deed is generally defined as any conveyance that has no monetary consideration. Relationship of the parties is not a consideration in making an interpretation.

Not being an attorney limits any further speculation on my part. If you are asking me to jump one way or another based on what you disclosed, my inclination is that what you have is indeed a gift mineral deed and that is what I would call it if I were running title in Texas.

Best,

Buddy Cotten
www.cottenoilproperties.com
Co-Director, District 3, NARO-TX

You need only show consideration to have a valid transfer. The amount is of no consequence. One dollar and other valuable consideration is a common term used to show consideration while maintaining privacy regarding the actual sales/transfer price.

But in this deed, the words "and other good and valuable consideration" do NOT appear at all, it states

that she received "$1, cash in hand", and "affection". I asked a probate/estate attorney about it, just casually when consulting him for another matter, and he said

"technically, that $1 was community property" but then he laughed, so I am still under the impression that

a court would consider it a gift deed and thus my mother did not own half (there are several oil wells on the

property....sigh). So, Mr. Howard, if the ".....other valuable consideration" is not there, would you agree

a court would likely consider it a gift deed? Thank you for your input.

john howard said:

You need only show consideration to have a valid transfer. The amount is of no consequence. One dollar and other valuable consideration is a common term used to show consideration while maintaining privacy regarding the actual sales/transfer price.

I would defer to Mr. Cotten as he appears to be among the most knowledgeable persons appearing on this site.