Passing Down Share of Ownership to Heirs

Ownership and Title
1

My mother owns about 75% of land and mineral rights on about 5 acres in Eddy County, NM. Occasionally, she receives royalty payments (maybe a few hundred dollars a year). She is listed in the county records as the owner and she pays the property taxes.

She inherited the property and mineral rights from her mother who inherited it from her father, the purchaser of the land. My mother’s mother, one of seven children inherited 1/7 and through quit claim deeds was able to get a total of 5/7 ownership from her siblings. These were filed with the county.

The other 2/7 has been passed down to succeeding generations so that about 20 people own the remaining 2/7 but each one not owning much more than 1% and most much much less.

My mother was able to get a few quick claim deeds so that she owns about 75%, but most of the other owners never responded and probably do not know that this property even exists.

First question - What does my mother need in her trust to pass her share of ownership to her heirs?

Second question - How does one clean up such a mess of ownership? Not much can be done with property until it is cleared up, I believe.

I know that I will need an attorney but I thought that I would ask to see if others have experienced this situation and what their course of action was. Thank you!

2

If you mother has marketable title currently, then she can execute a deed to the Trust for a simple transfer of her ownership. As to the remaining owners, the surface and minerals issues are different.

Selling a fractional share of a surface tract generally decreases the market value. You can try to purchase the other fractional interests or speak with an attorney about a partition suit. You will have to evaluate the market value in both instances.

As to the mineral interests, NM has forced pooling statutes that mitigate small fractional interests affects on drilling and development.

3

HIRE AN ATTORNEY!!. A lot depends on the State and how the State determines what mineral right are. In WV, mineral rights are “real property” and that would be covered in any trust.