Could someone explain how a life estate works? My mother supposedly had a life estate on her mineral rights, she has not collected any royaties for years. She has passed and I need to know what happens now. Thank you.
If your mother was a grantee of a life estate, then the deed or probate decree will state the distribution of the interest at her death. Once you have that documentation, you can pursue other questions.
Thank you for your response. We know how her estate is to be distributed, but what does inheriting her life estate provide to the family. Do they now own shares of the mineral rights and start to receive royalties once the operator is notified?
You need to examine the instrument that created the life estate. It will tell you what happens to the interest after your mother passes away. Usually a life estate gives someone the right to enjoy a piece of property for their life with the interests automatically passing to specific people upon the life estate owner’s death. It could be one or more people, they are called a remainderman and should be identified in the document.
A life estate is a present interest that lasts for the duration of the life tenants life (your mother). Upon her death, the interest terminates and vests in the remaindermen or reverts back to the grantor.
Do you know if her interest was acquired by deed, probate or intestate succession?
Typically you would file an Affidavit of Death with a copy or certified copy (depending on filing requirement) with a legal description of the interest in the Affidavit. Best Practice would be to cite the document that originally granted the life estate. After recording, provide a copy of the AoD to the Operator/Purchaser to start the Division Order Process.
It would be unusual for you to inherit her life estate. The more common practice is for you to inherit the remainderman interest which is most likely separate from her estate proceedings. That interest should be unencumbered.
sure , they form a life estate it essentially transfers the title into the names of the benefactor ahead of the passing of the individual but allows them to benefit while still alive. for instance your moms house would be hers to live in until she passed and then it is yours without the hassles of probate etc. If minerals were in life estate she would have been paid on them or they would go into a designated account , or possibly in suspense.