My husband and I need to draw up our wills. Currently I am getting payments from 3 drilling companies, and one lease that hasn’t been drilled. I would like these to pass to my husband until such time as he passes, then they are to be transferred to our daughter - not divided among our kids. (They are all OK with it and even suggested it.) How can this be done?
To do it correctly & the way you wish, you should hire an attorney that knows estate planning for the state where the minerals are located.
Agree working with an attorney is best, but it is considered property and should be treated as such in your will.
This isn’t legal advice but a Will has to be probated that costs money. Based on what you want to achieve, it can most likely be done with a deed. Again, I suggest going to an attorney.
Congratulations, It is smart to plan.
Keep in mind that a Will almost always requires probate. That is why many people use probate avoidance trusts. Often called revocable trust or living trusts, etc. You should visit with an estate planning attorney in your state. But make your attorney knows how to deed minerals into your trust. Often an attorney in a state without minerals does not know that funding actually requires a deed.
I handle lots of probates that could have been avoided with a proper deed to a trust.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
If you use a trust, the attorney should make sure that the terms include the power to lease minerals and bind the residuary beneficiary to the leases. Minerals are real property and the terms need to comply with state law where the minerals are located.
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Do everything you can ahead of time. Use someone in your state that is a certified in estate plans. This needs to comply with your state and any states where your minerals are located, plus Federal Laws must also be considered.
I agree with Martha many attorneys do not understand Oil and Gas leases, deeds or what ever else goes along with them. The same with a lot of trusts departments. Most people and attorneys believe them to be Real Estate. The only Real Estate concerned, would be if one owns the surface. Just my 0.02 cents worth… MK
Minerals are real property in Texas and most, if not all, other states.
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I agree @TennisDaze, they are Real Property but not the same as Real Estate. I have had this argument before with my and other attorneys. So maybe I am wrong or maybe I am right, it is how they see it I guess? I know that Real Estate persons do not have anything to do with Oil and Gas leases as it is outside of there training and scope. Again just my 0.02cents MK. 