If a transfer on death deed for mineral/royalty interest is prepared with the proper legal description of the land where the mineral interest is and also includes the current listing of producing units, and indicates that the Deed covers mineral interests of every kind and description owned by Grantor, what more can an Oil Company like Devon, for instance, want? The TODD that has been allowed by the State of Texas is supposed to be pretty simple to allow people to avoid the expense of probate. If the Oil/Gas companies are not going to allow the TODD’s to transfer mineral interest, what good does it do to even file a TODD and then the beneficiary finds out after the fact they must then go through probate to actually get the transfer accomplished. My royalty payments are small. I am not wealthy and the TODD form approved by the State would be so simple for my beneficiary if I’ve included the information requested on the form. There’s no need for a trust in my situation. Has anyone had any experience in getting their TODD for minerals accepted by the oil/gas companies with the simple Texas State form?
You are correct. a Lady Bird Deed (Transfer on Death) is the same as a Warranty Mineral Deed reserving a Life Estate unto the Grantor. Upon Death, the interests automatically vests unto the Grantee. It would not pass through the estate of the decedent.
similarly, intestate succession transfer automatically upon death of the decedent and does not, for the same reason, but coming out of statute law rather than a deed, ever vest into the Estate of the decedent.
For some reason TODDs are not widely accepted or used in Texas. Different result in Oklahoma.
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