How do I transfer ownership of my mother's gas and oil interests over to my ownership? She is 98 and trying to get her affairs in order and thinks it may be easier to do the transfer while she is still here.
Thanks you so much for your help.
Vanita:
I think that a "Quit Claim Deed" would suffice in your case. Google "Quit Claim Deed" and read up on how this instrument works in regards to the transfer of mineral interests.
Watch out for tax issues. If she transfers more than $13K value per person, she would be liable for gift taxes for the amount in excess of 13K each.
Talk to your CPA if you think there is any chance she will exceed it. Split it over two years ($14k in 2013) or use part of the unified estate tax credit. (up to $1 Mil)
The estate tax threshold is $5 million, currently. Correct that she may have to file gift tax returns for any gifts over $13,000, even though no tax is owed. A qualified CPA or attorney can tell you how mineral properties are valued for estate tax purposes.
The type of deed depends on whether she is gifting minerals, or surface also.
I am not a an attorney and I am not offering legal advice!!!!!!!!!!!!!!!!!!
My mom is 88 years old and has a will where she has complete control. I recently discussed any options with her and a friendly lawyer about mineral rights she has and the living trust and mineral deed transfer downloaded from an online attorney site (at a small cost) was a great benefit. I would think the MRF web site would have these forms (with attorney disclaimer). The trust was easy to fill in and my mother retains all rights over the trust until death. The best part is that the mineral deed transfer separates her other property and list the property from each county and state involved and transfers ownership to the trust immediately so there is no legal or monetary cost after your family member passes. A certification of trust and the mineral deed transfer will need to be filed in each county and state where there is ownership or on or for any deed where ownership might exist. I hope this helps. I am not giving legal advice, only my personal experience.
This is an issue for my family, but we want to change to a trust. I called Reeves County Clerk after reading this to see where to find the Quit Claim Deed document online (like you can do in CA) but in Texas it does not work that way. The clerk referred me to a Title Co. The Title Co said a Quit Claim is not the best option in that it would not transfer ownership until 25 years after the original owner was deceased. The Title Co said it is best to go to a lawyer here in CA, have them create the document that would deed my Mom's ownership to the Trust. They said it would be very helpful to reference the Affidavit filed (with the filing date) related to the mineral rights contract with the Oil company that establishes my mother as the heir to the rights.
we recently did a deed. as a backup, we got an appraisal of the interest. Since it was only 40 ac. and the appraisal was quite simple, the appraisal was only about $400. which i consider to be a bargain to avoid the $13,k / year issue.
There is a name for it but I don't recall just what it is where she can transfer ownership but retain any income
as long as she is living. Gives her peace of mind especially for a Mother that is younger or when there is royalty payments.
Dale,
I have seen them in Oklahoma as a Revocable Transfer on Death Deed. I think state laws will vary.
In Oklahoma there is now some additional paperwork that must be filed after the death to finish the process otherwise it is void.
great helpful discussion thanks
So many options. Wouldn't it work to just have my mother transfer ownership to me so that it doesn't have to through probate (especially out of state)? She is 99.
Dale, you're thinking of a "life estate." A person can convey property to another while reserving an interest in the property for his or her lifetime. For example, A could convey land to B but retain the surface or the minerals or any component of the mineral rights, or any combination of those three, for A's lifetime.
For this situation, I don't like the Quitclaim Deed, why not do a Mineral Deed? It's just as simple, involves just as little time and cost, and is more "solid" from a title/ownership perspective because the Seller is "warrantying" or guaranteeing that he or she actually owns the property conveyed.
The trust might not involve "legal or monetary cost after your family member passes," but it WILL involve legal or monetary cost BEFORE your family member passes (unless you know an attorney who works for free, I don't). I looked into setting up a Trust for a piece of property, it was going to cost me about $1,500 in legal fees. So instead I downloaded a Warranty Deed, took ten minutes to fill it out on the word processor, printed it, signed it in front of a notary, and filed it at the courthouse. Cost? FREE (except for filing fee, $16).