I am the Survivor Trustee of my parent’s Revocable Trust in Texas. There are existing mineral rights in one county in Texas registered in the name of the Trust. Separately, the Will which has been probated, states that all mineral rights in that county are to be shared equally between my brother and myself. There are 11 Trust beneficiaries. My question is, can I transfer those mineral rights out of the Trust and into the names of my brother and myself, based on the clear intent of the Will? And if that is not a viable option, could my brother and I buy the mineral rights from the trust? And before I get solicitations to buy the mineral rights, I am not interested in selling to a third party at this time. Thanks in advance for your advice.
The Last Will will not supersede the Trust. If the properties were deeded into the Trust, then you have to comply with the provisions of the Trust. The Trust is a contract. If you buy the mineral rights directly from the Trust, you are asking to get sued. As trustees you owe a fiduciary duty to the beneficiaries. Even if you believe the price is fair, one of the other nine or ten won’t think so.
Now you can purchase the interests from the beneficiaries. Or make a deal with them that you get their percentage of the Trust property in exchange for x dollars.
I agree with Tim, just confirm with Texas Attorney.
Notice: Informational only. No attorney-client relationship is formed by this post. I am an Oklahoma-licensed attorney, but this is not legal advice. Do not share confidential facts in this public space.