Passing down mineral rights

General Mineral Rights Discussion
1

So, Here is a scenario for you....

My Dads Wife passed. She owned some mineral rights. She had a child from a previous marriage. She had no will. Who is the rightful heir to her mineral rights.

If my Dad, then what if he passes?. Does it default to her only child or, if my Dad has a will and deeds it to me, does it pass to me.

Dakota65

2

Dakota67:

I would seek the advice of an estate attorney in regards to how a settlement of the individuals estate would be handled. I would think that the courts would award the child of the deceased, all the assets which were possessed prior to the marriage.

3

Google the intestate statute for the State where they reside. The child and spouse will probably share in some proportion. Your father’s step-child would not inherit from him unless he specifically devised to that child.

charles s mallory said:

Dakota67:

I would seek the advice of an estate attorney in regards to how a settlement of the individuals estate would be handled. I would think that the courts would award the child of the deceased, all the assets which were possessed prior to the marriage.

4

Interesting. I have read that the estate becomes my Dads and that it then follows his blood lines.

5

I doubt that is correct. In most states the spouse would get the entire amount, unless the deceased spouse has children from a prior marriage. In such a case, the spouse and the step-children share.

Dakota67 said:

Interesting. I have read that the estate becomes my Dads and that it then follows his blood lines.
6

If this were in Colorado, your dad would get the first $150,000, and then him and the step-child would split the remainder.

Lisa said:

I doubt that is correct. In most states the spouse would get the entire amount, unless the deceased spouse has children from a prior marriage. In such a case, the spouse and the step-children share.

Dakota67 said:
Interesting. I have read that the estate becomes my Dads and that it then follows his blood lines.
7

Lisa, you are right, the intestate laws in my state are clear, 1/2 to the spouse, the other half divided among the children of the deceased.

Does my fathers half then pass to his blood line when he passes.

Thanks!

8

So long as your father is unmarried (if married you can’t cut out your spouse) at the time of his death, he can give his estate to whomever he wishes via will or trust. If he dies without a will, then it would pass by the same terms of the statute I had you look up–which would be his blood lines.

Dakota67 said:

Lisa, you are right, the intestate laws in my state are clear, 1/2 to the spouse, the other half divided among the children of the deceased.

Does my fathers half then pass to his blood line when he passes.

Thanks!

9

This question is for anyone that can help direct me to finding the laws about this 1/2 to spouse and other half divided among the children of the deceased. If minerals are owned in ND, but the MO lives in another state, which State would dictate the law regarding the ND Minerals? Is the 1/2--1/2 rule nationwide or vary from state to state?
Thanks


Dakota67 said:

Lisa, you are right, the intestate laws in my state are clear, 1/2 to the spouse, the other half divided among the children of the deceased.

Does my fathers half then pass to his blood line when he passes.

Thanks!

10

The intestate distribution depends on:

1. Who owns the interest?

2. Is the ownership joint tenancy with right of survivorship?

3. If surface is also owned is it homestead?

4. Does dower and curtsy apply?

5. Is the ownership as a life tenant?

6. Where is the interest located (intestate laws of the situs of the property controls)?

In some cases, a wife is not a heir of her husband on his separate property. For example, in Texas heirship on separate property, the surviving spouse receives a 1/3 life estate and the children receive 2/3 in fee and a remainderman interest on the other 1/3,

11

Snues:

I would contact Buddy Cotten with this question as he should know the answer or direct you to the answer.

12

Hi Buddy,

I guess laymans terms would be easier for me, as I curtsy (bending knee and holding my dress at the sides as I briefly bow my head) if curtsy applies. (smile) I keep saying the more I learn the less I know.

In ND, If there is joint tenancy to a mineral deed, and one spouse passes, does the full ownership go to other spouse; or does 1/2 go to spouse and other 1/2 divided among the children?

Aside from the joint tenancy question above, what the heck is curtsy--in mineral terms?

Thanks for your help.

13

Hi, Sue

Dower and curtsey rights are laws that govern the distribution of marital properties. For the most part, they have been replaced with inheritance laws.

As to joint tenancy with rights of survivorship, the full interest of the deceased party instantly passes to the surviving owner of the joint tenancy. This type of ownership is not subject to probate,

As to North Dakota Intestate Laws, this is from the ND probate code:

§ 30.1-04-02. (2-102) Share of spouse.. The intestate share of a decedent's surviving spouse is:
  1. The entire intestate estate if:
    a. No descendant or parent of the decedent survives the decedent; or
    b. All of the decedent's surviving descendants are also descendants of the surviving spouse and there is no other descendant of the surviving spouse who survives the decedent.
  2. The first three hundred thousand dollars, plus three-fourths of any balance of the intestate estate, if no descendant of the decedent survives the decedent, but a parent of the decedent survives the decedent.
  3. The first two hundred twenty-five thousand dollars, plus one-half of any balance of the intestate, if all of the decedent's surviving descendants are also descendants of the surviving spouse and the surviving spouse has one or more surviving descendants who are not descendants of the decedent.
  4. The first one hundred fifty thousand dollars, plus one-half of any balance of the intestate estate, if one or more of the decedent's surviving descendants are not descendants of the surviving spouse.
30.1-04-03. (2-103) Share of heirs other than surviving spouse. Any part of the intestate estate not passing to a decedent's surviving spouse under section 30.1-04-02, or the entire intestate estate if there is no surviving spouse, passes in the following order to the individuals who survive the decedent:
  1. To the decedent's descendants by representation.
  2. If there is no surviving descendant, to the decedent's parents equally if both survive, or to the surviving parent.
  3. If there is no surviving descendant or parent, to the descendants of the decedent's parents or either of them by representation.
  4. If there is no surviving descendant, parent, or descendant of a parent, but the decedent is survived on both the paternal and maternal sides by one or more grandparents or descendants of grandparents: Page No. 1
    a. Half to the decedent's paternal grandparents equally if both survive, or to the surviving paternal grandparent, or to the descendants of the decedent's paternal grandparents or either of them if both are deceased, the descendants taking by representation; and
    b. Half to the decedent's maternal grandparents equally if both survive, or to the surviving maternal grandparent, or to the descendants of the decedent's maternal grandparents or either of them if both are deceased, the descendants taking by representation.
  5. If there is no surviving descendant, parent, or descendant of a parent, but the decedent is survived by one or more grandparents or descendants of grandparents on the paternal but not the maternal side, or on the maternal but not the paternal side, to the decedent's relatives on the side with one or more surviving members in the manner as described in subsection 4.
  6. If there is no surviving spouse, descendant, parent, descendant of a parent, grandparent, or descendant of a grandparent, but the intestate decedent has one deceased spouse who has one or more descendants who survive the decedent, to those descendants by representation or has more than one deceased spouse who has one or more descendants who survive the decedent, the estate is divided into as many equal shares as there are deceased spouses, each share passing to those descendants by representation.
14

Thanks so much Buddy, I spent all night trying to find that ND probate code, without luck.

As to the $$part: The first three hundred thousand dollars, plus three-fourths of any balance of the intestate estate, if no descendant of the decedent survives the decedent, but a parent of the decedent survives the decedent.

Is this why so many have asked how they can get an assessment of the value on their minerals, in other forum blog questions?

15

Let's not forget the horrific attack on our country almost exactly 10 years ago as I type this. The 3,000 men, women and children who died that day did nothing but show up where they were supposed to be.

GOD BLESS AMERICA !!

16

I have designated, in my will, that my daughter be sole heir to my estate. I own mineral rights in McKenzie County ND. Leased to XTO and currently receiving royalties on 2 wells with 12 more permitted, in confidential status. Specifically, these wells are not mentioned in the will but definitely part of my estate. I want to be certain that these mineral rights and royalties be transferred to her without issue. In the past I have engaged the services of a law firm in Williston. They reviewed all the leases I have had in the past as well as the current one with XTO.

My daughter is employed in a law firm here, but are not expert in oil and gas mineral rights. All we have here is corn oil. Before I seek legal assistance, which I may or may not need, and that costs an arm and a leg. I would like to seek input on this website from anyone with working knowledge or input on my dilemma. My only goal is to make a smooth and legal transfer to my daughter when I die. I would like to avoid probate if possible, but that is not the over riding issue. A smooth legal transfer is most important. Thank You

17

Deloris:

I would check out the "Quit Claim Deed". This document might suffice your needs.

Deloris Bohnsack said:

I have designated, in my will, that my daughter be sole heir to my estate. I own mineral rights in McKenzie County ND. Leased to XTO and currently receiving royalties on 2 wells with 12 more permitted, in confidential status. Specifically, these wells are not mentioned in the will but definitely part of my estate. I want to be certain that these mineral rights and royalties be transferred to her without issue. In the past I have engaged the services of a law firm in Williston. They reviewed all the leases I have had in the past as well as the current one with XTO.

My daughter is employed in a law firm here, but are not expert in oil and gas mineral rights. All we have here is corn oil. Before I seek legal assistance, which I may or may not need, and that costs an arm and a leg. I would like to seek input on this website from anyone with working knowledge or input on my dilemma. My only goal is to make a smooth and legal transfer to my daughter when I die. I would like to avoid probate if possible, but that is not the over riding issue. A smooth legal transfer is most important. Thank You

18

Deloris, If you have the deed/s to all of your interests in your name, the title being good marketable and fully up to date, I think the quitclaim would suffice.

If your mineral rights were not in your name, if you needed some curative or probate, logically a quit claim would not cure title defects and your daughter would probably have to cure title later. I hope this helps.

19

It helps indeed. I don't have paper copies of the documents mentioned, but am going to pursue obtaining them ASAP. Will bite the bullet and contact the attorney in North Dakota. It would seem that in practice everything should be in order since there were no issues with the division orders or other research done by the oil company or companies, unless that would not be relevant to what I am wanting to accomplish. I am not afraid to over think this because there would be much at stake if I went ahead blindly thinking all would be well.

Stubbing my toe is not an option. Thank you Mr Kennedy. D. Bohnsack

20

Deloris, you may be able to get an NDRIN Recorders Network subscription and search for your deeds if they were recorded in the last 20- 25 years. The subscription is $25 and they accept credit cards. You could download facsimiles of your deeds for $1 per page or once you know the document number you could obtain certified copies from the recorder for a fee. The downloaded facsimiles should suffice. Do not forget to cancel the NDRIN subscription when you are done, so it does not become a recurring charge. If your deeds were recorded in the last 20-25 years, it's a lot cheaper than having a lawyer look it up.